'Show-pony antics': councillor pay freeze won't move needle for ratepayers

by · Newcastle Herald
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Councillors freezing their pay may make for a nice headline and some flattering photographs and some personal 'feel good', but let's keep this in perspective ("'A strong message': why these Hunter councillors froze their pay", Newcastle Herald 22/5). It is just political theatre dressed up as financial sacrifice.

Cessnock City Council is a local government organisation with annual revenue nudging and, in some years, exceeding $200 million. Against figures of that size, councillor remuneration barely registers. The amount saved by freezing councillor pay would be little more than loose change from down the back of the municipal sofa.

Residents are being asked to contemplate a near 40 per cent rate increase. Families are tightening belts, businesses are under pressure and household budgets are already stretched. Against that backdrop, councillors patting themselves on the back over a modest pay freeze feels less like leadership and more like show-pony antics.

No one begrudges councillors being paid. They give time, attend meetings, answer calls and deal with community concerns. Fair remuneration for public service is reasonable. But presenting a pay freeze as a major act of solidarity risks insulting the intelligence of ratepayers.

If council truly wants to send a "strong message" about financial responsibility, residents might ask where the bigger savings are. Where is the detailed scrutiny of spending priorities? Where are the meaningful efficiencies within an organisation handling so many millions annually?

Symbolic gestures have their place, but symbols do not pay rates bills. Ratepayers are not looking for symbolism. They are looking for substance.

Michael D. Lowing North Rothbury

Sky won't fall from tax shift

As a Labor Party supporter, and even if I wasn't, I am in favour of the capital gains tax changes made in the budget. I was also in favour of them when proposed by Bill Shorten, but I, like most people, remember the campaign against them that stopped Mr Shorten becoming prime minister.

Mr Albanese and his team have introduced the changes two years out from an election, and I believe there is a strategy in that. Come election time, the thinking voter will be aware that the sky hasn't fallen in.

Investors aren't really being punished, they are being put on the same playing field as the first home buyers. I think that's more than fair. I would have taken it further and limited the number of new homes they could negatively gear. All the calls and demands for an election now are a desperate plea from the people who are happy to exploit the tax loophole, but have little sympathy for the pay as you go wage earner trying to get into home ownership.

Fred McInerney, Karuah

Don't call landlords investors

Stop using the term "investor" to describe people who buy residential property to accumulate tax-deductible losses. They are landlords and, on the evidence, most aren't very good at it. As an investor for over 30 years, I know the difference between an investment and a confidence game, where the feckless buyer is eventually left holding the bag. That time is now. The government has enacted some long-overdue reforms to correct the perversion of residential housing into a type of capital. Capital investment produces a good. It creates wealth.

While at it, the government could also use accumulated tax credits on negative gearing losses to reduce the cost base of houses and identify the actual capital gain. There are plenty of good investments out there. They don't need the inclusion of real estate agents, mortgage brokers, financial planners or others in this chain of parasites to make money. Do the work and find them. That's what an investor does.

Phillip Ironfield, Teralba

Anger at Albo is a surprise

I can't believe the "position has changed" message has created so much anger. The tax changes are similar to Bill Shorten policies in the 2019 election.

The position hasn't changed. The belief that an ineffective Coalition and huge majority would carry the day is looking very fragile. One Nation surprised everybody on the back of the Bondi massacre with its hard-nosed immigration policies.

Policies around first home buyers, healthcare and energy are fundamental to the economy and our cost of living. The time bomb is our increasing government debt going over $1 trillion and the interest that accrues.

While Nero played his fiddle and Rome burned, they had Emperor Vespasian to emerge to manage the economy back into prosperity. Where is Vespasian when you need him?

Grahame Danaher, Coal Point

Halted flotilla made its mark nonetheless

Protest groups aim at getting publicity for the cause they represent. Sometimes this backfires and has a negative effect even with those who are undecided. The Global Sumud Flotilla was spectacularly successful. It showed to the world the real side of Israel and its government's approach to the rule of law and disregard for humanity. And most important the behaviour of that revolting creatue Itama Ben-Gvir who condones torture humiliation and supports death by hanging.

Israel's Foreign Ministry has insisted no 'live ammunition' was fired at protesters. It said 'non-lethal' means were fired at the vessels as a warning. Picture supplied.

Sandy Buchanan, Largs

No sympathy for activist

I have no empathy for Zack Schofield. He knew where he was going and what he was getting into. If he's not already he should be made to self fund all of his repatriation costs.

Dave Sharpe, Macquarie Hills

The trail of crumbs never ends

I hate to put a spoke in your wheel, Helen Douglas ("I'm putting my verification anxiety to bed", Letters, 23/5), but I speak from past experience. You must also write another note that tells you where the secure place is that you hid your password, and hide that note too. If you don't do this I'm afraid it's back to square one.

Julie Robinson, Cardiff

We can't tax our way to wealth

Robert Masterton ("Wealthy can't avoid paying their fair share", Letters, 23/5) defends the proposed tax changes as being helpful to homebuyers struggling against wealthy property investors. The truth can be shown to differ from this when you compare Australia with New Zealand. Both Australia and NZ, which has zero capital gains tax, have similar home ownership rates in 2026 of about 66 per cent. Income tax rates are lower in NZ at 10.5 to 39 per cent at $180,000, compared to Australia at 19 to 45 per cent at $180,000. Company tax at 28 per cent is lower in NZ than Australia's 30 per cent. How does NZ manage so well with lower taxes and why should we increase our taxes? Making property taxes even more severe in Australia will not help home buyers. You can't help the poor by robbing the rich.

Peter Devey, Merewether

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