It is called grandfathering, which means NG still applies for them, which is designed to appease the current investors btw.
But going forward NG on new builds meaning it is to be put on new housing stock.
The fact of the matter the housing Ponzi scheme has resulted in house price explosion that needs to be put into check, leading to a massively reduced savings ratio and a stangnant economy. Furthermore our private debt levels have exploded, been close to worst in the world now, and this is worrying the RBA in the soft landing process. Our lower household spending, after deducting mortgage payments and cost of services payments, because of our higher debt levels has meant that the domestic economy is really sick. If you took population growth out of the latest GDP figures we would be in recession now - the LNP good economic managers is the actual joke here, they have been pathetic. Wages growth has been statistic to boot.
How government’s increase housing affordability in future whilst ensuring house prices reduce slowly or stay static is the key here, but like the 1980s it will be up to a ALP government to make the economy competitive again. But there are no Paul Keating or Bob Hawke in Shorten’s ALP, and certainly not in the current LNP drop kicks in government, so the economy going forward is held together by a wing and a prayer. Remember the recession we had to have smashed inflation and Howard benefited the most from the competitive economy he inherited, and he built on those reforms before becoming the biggest spending PM in history and his giveaways from 2003 which led to the structural budget deficits of today. Thereafter all PMs have been economically incompetent and have let Australia’s competitiveness reduce again, after the efforts of the 1980s, 90s and early Howard years.
However, the ALP NG changes at least will provide a better opportunity for a soft landing, than the hard landing we would get under this incompetent LNP who has put its head in the sand on the issue. If interest rates just rise 2 percentage points we are screwed in Oz because of the income to house price ratio going up from less than 4 times in the 1980s to over 6 times and 10 times in all Australian cities today. That is why Australians were able to absorb 17% interest rates in the 1980s in transitioning an economy, but that won’t be the case today due to incompetent governments over the last 15 years not dealing with the potential of a housing Ponzi scheme and its impact on the economy. All IMO
And the irony here is so many here want reduced immigration, but it is immigration that has masked the GDP growth figures of late, and when combined with investors and foreigners, fuelled the Ponzi scheme that led to the squeezing first home buyers from the market, or ensuring they became loaded in debt to the hilt (hence why we have these 30 year loans of today rather than much shorter loans in the 1980s). Now reduce immigration and that is what will also hammer your Ponzi scheme of housing - that will have a far far bigger impact than NG changes, given proposed ALP grandfathering provisions, noting foreign investment in housing is starting to curtail as well. I support lower immigration btw, but the LNP are big on immigration as that is what they hid under for their false GDP readings and hence are crap economic managers of late hiding behind headline GDP figures. That is the irony here LOL
