Latest news with #Jochinke
West Australian
21-05-2025
- Business
- West Australian
Asset rich, cash poor: Farmers come out swinging against Labor's plan to tax unrealised gains
Farmers have come out swinging against Labor's planned changes to superannuation taxation, saying asset-rich but cash-poor farming families may have to sell property to cover the tax. From July 1, the concessional tax rate will rise from 15 per cent to 30 per cent on the earnings attributable to super balances above $3 million, including taxing unrealised gains on the increased value of farming properties. Agriculture industry groups have labelled the move 'unfair' and 'unreasonable', with unrealised gains being profits that farmers have not received and cannot use until they have sold their land. National Farmers' Federation president David Jochinke said 3500 farming families would be instantly hit, with another 14,000 also affected if property values grew above the threshold. He said the impact would be most felt in multigenerational families where older farmers held their assets in self-managed super funds and leased the day-to-day operations to their children. This arrangement works because it provides retirement income for the parents, as well as an opportunity for the next generation to start farming. 'Like any property, farmland values can rise, but these paper gains don't translate to real income. Rises in land values usually mean very little when farms are multigenerational with no intention of being sold,' Mr Jochinke said. 'This tax could force some farmers to sell up just to pay their tax bill.' Business groups have been consistently lobbying the Government to drop the unrealised gains component of the policy, but Council of Small Business Associations chief executive Luke Achterstraat said the group had not seen 'any consideration to change the tax' in two years. 'We're not necessarily talking about high-net-worth individuals here. We're talking about a lot of small family and farming communities,' Mr Achterstraat said. Less than one per cent of Australians have super balances worth more than $3m, but critics claim the proposal could end up affecting more people because it would not be indexed. It is understood wealthy retirees, including farmers, have been selling assets and restructuring their investment portfolios ahead of the July 1 deadline. Federal Treasurer Jim Chalmers has repeatedly defended the changes, labelling them 'modest' and an 'important part' of efforts to make the Budget more sustainable. 'It only applies to a tiny sliver of people, and it is still concessional,' he said. 'This is a modest change, but helps make the Budget more sustainable and fund our priorities.' When announcing the change back in 2023, Dr Chalmers said about 80,000 Aussies would be impacted or about 0.5 per cent of the population by wealth. But modelling from AMP deputy chief economist Diana Mousina shows the average 22-year-old today could retire with more than $3m due to wages growth, inflation and compound interest. Pastoralists and Graziers Association of WA president Tony Seabrook said Labor's proposal would catch super account holders 'trying to do the right thing', off guard. 'Those that have taken the advice to put their properties into their superannuation, are in a world of pain,' he said. 'People took the advice to do this . . . and it was good advice. 'Asset-rich and cash-poor has been the nature of our business forever . . . to do this is unfair and unreasonable, and fails to acknowledge the impact on rural farming families.' The move is Labor's major revenue-raising initiative for its second term of government, with estimates the move will rake in $2.3 billion per year. The legislation, before Parliament since November 30, 2023, will only require Senate support from the Greens to pass — a likely outcome given they have expressed support for the policy.
Sky News AU
08-05-2025
- Business
- Sky News AU
‘Soul crushing' drought in Tasmania influences $73 million dollar support package
National Farmers' Federation President David Jochinke calls the drought conditions occurring in Australia's south-east 'soul-crushing' for farmers. Due to the financial loss the drought has caused, the South Australian government has released a $73 million drought support package to help farmers and their communities cope. 'It would be awesome now with the new government to be put in place to really change their focus and get out to these regional communities and put their arms around them,' Mr Jochinke said.
Khaleej Times
26-02-2025
- Business
- Khaleej Times
Dubai real estate market posts first monthly dip in two years
Dubai's red-hot real estate market has recorded its first monthly price decline in over two years, signalling a long-anticipated shift toward equilibrium. According to Property Monitor, a leading real estate intelligence firm, average prices fell by 0.57 per cent in January 2025 to Dh1,484 per square foot — the first drop since summer 2022. This cooling follows four consecutive years of unprecedented growth, during which prices surged by over 30 per cent in 2024 alone, smashing records for transactions, launches, and mortgage activity. January 2025 marked the strongest month on record for sales volume, with 14,413 transactions. However, this figure represented a 4.6 per cent month-on-month decline from December 2024, hinting at a moderation in buyer momentum. Notably, the off-plan sector continued to dominate, with 53 new launches adding 12,400 units to the pipeline. With 7,555 transactions, the off-plan market accounted for 52 per cent of sales during January, down 17.7 per cent on December 2024. Title deed sales saw a marked month-on-month increase, rising by 15.7 per cent and accounting for 47.6 per cent of sales. Developers such as Emaar (16.5 per cent market share), Damac (15.8 per cent), and Danube (5.3 per cent) led activity, though off-plan sales dipped 17.7 per cent compared to December. Meanwhile, ready property transactions rose 15.7 per cent, reflecting renewed investor interest in completed assets. The slight price correction underscores growing affordability constraints after years of steep appreciation. Median prices in January stood at Dh1.35 million for apartments, Dh2.61 million for townhouses, and Dh6.92 million for villas. While luxury segments saw eye-popping deals—including a Dh425 million villa in Emirates Hills—entry-level buyers gravitated toward affordable options, such as a Dh175,000 studio in Dubai Production City. Zhann Jochinke, COO of Property Monitor, noted, 'Dubai's market is maturing. After a phase of explosive growth, stakeholders are recalibrating to balance supply with sustainable demand.' Mortgage activity echoed this sentiment: despite tighter Central Bank regulations, loans rose 6.8 per cent month-on-month to 4,134, with stable loan-to-value (LTV) ratios indicating sustained lender confidence. 'While the total number of transactions remains strong, affordability constraints and market maturity are beginning to shape the landscape. With sales volumes and mortgage transactions moderating, Dubai's property sector could be transitioning from a continued phase of rapid growth to a more sustainable trajectory. A careful balance of supply and demand will determine the future of the market in 2025 and beyond,' said Jochinke. January's dip comes on the heels of a historic 2024, when Dubai's property sector defied global headwinds to achieve record-breaking sales (over 150,000 transactions) and price peaks. Analysts argue that January's moderation reflects a natural market cycle rather than a downturn, with developers and regulators now prioritizing long-term stability over unchecked expansion. With 12,400 new units launched in January alone, developers must align future projects with evolving buyer preferences, particularly in mid-market and sustainable housing, market analysts said. Stable LTV ratios and rising loan volumes suggest financing remains accessible, though rate fluctuations could impact sentiment. The polarization between ultra-luxury and budget-friendly segments will likely persist, requiring tailored regulatory and investment strategies. As Dubai's market transitions from 'boom' to 'balance,' 2025 is poised to test its maturity—and its ability to sustain growth without overheating, market pundits said. 'For investors and end-users alike, the era of guaranteed double-digit returns may be fading, but opportunities endure in a market now defined by nuance, diversification, and strategic foresight.'
