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Older, bigger, slower growing, more diverse. Living standards at risk of going backwards. These were the key takeaways from the latest Federal Intergenerational Report (IGR), writes Dr Liz Allen. The intergenerational bargain or contract, which implicitly suggests that the country handed to each subsequent generation is the same, if not better, than the socioeconomic conditions enjoyed previously, has been eroded. Increasing or maintaining living standards can no longer be guaranteed. Australia’s dumb luck has run out.
Stamp duties have the potential to affect labour markets and business investment by influencing the locational decisions of people and businesses. By acting as a tax on moving, stamp duties may discourage some workers from re-locating to take up jobs paying higher wages, or to reduce their travel times and costs. Likewise, stamp duties may discourage business relocations to areas with greater commercial opportunities, deeper labour markets, or areas with lower land costs, writes Jeffrey Hole, Honorary Research Fellow at Deakin University.
Read more Opinion article November 24, 2015