Aussies take note !

[weegee]

Just been talking to someone back home, and the news is...

The Federal Treasurer is trying to get the AUD down to 68 cents....so if you are thinking about transferring funds to here....dont wait too long.

Hope this is of some help to someone out there.....

[starky]

Thanks for the tip but 24 or 25 baht to the dollar still ain't bad. Those days of 30-32 were unsustainable and I personally was surprised how long they lasted. When I first came here it was 18-19 then early 2000's it rarely went above 23 so I guess we have come full circle. I would be happier with 28 though

[shirtless]

Well if the politicians want the dollar down to help their mining mates it will probably go up we all know how incompetent joe hockey is

[weegee]

Well if the politicians want the dollar down to help their mining mates it will probably go up we all know how incompetent joe hockey is

He (Joe Hockey) certainly is....and to top it off...20million for payment of bills to airlines for free flights to politicians....

Is Aus another up and coming Greece?

[sirineou]

"Australia’s net foreign debt had climbed to a record $955bn, equal to an already unsustainable 60pc of gross domestic product, and is set to rise as RBA's bet that depreciation in the value of the country’s currency would help to offset the decline in its overbearing mining industry hasn’t happened to the extent they would have wished."

" China's real GDP growth cycles have become an increasingly important driver of Australia's nominal GDP growth this last decade. With iron ore and coal prices plumbing new record lows, a Chinese (real) economy firing on perhaps 1 cyclinder, and equity investors reeling from China's collapse"

http://www.zerohedge.com/news/2015-07-19/australia-next-greece

Australia has a tool in its toolbox that was not available to Greece, Australia us capable of depreciating it's currency.

​The OP is correct in my opinion,

​If anyone is following the commodity markets one knows where Australians GDP id heading,

Debt heading UP. GDP heading DOWN, Can you spell DEVALUATION?

Edited July 25, 2015 by sirineou

[samran]

Treasurer has no control over the currency. It's been floating since 1983.

The AUD is a commodity currency. Follow the iron ore price and you'll see where the aud is headed.

[Aussieroaming]

Excellent, I am currently being paid in US dollars. I love Australia but have left there due to the high tax and nanny state attitude.

High tax, high rates, high cost of food...they have turned the lucky country into a high cost and little return place.

Australians are truly being ripped off by the government...sure the place is nice but Aussies are paying a huge price for it compared to other country's.

[krisb]

Excellent, I am currently being paid in US dollars. I love Australia but have left there due to the high tax and nanny state attitude.

High tax, high rates, high cost of food...they have turned the lucky country into a high cost and little return place.

Australians are truly being ripped off by the government...sure the place is nice but Aussies are paying a huge price for it compared to other country's.

Compared to what countries? Bit unfair to compare.

Tax is high, but any decent accountant gets it way down. Think it's 25% my original tax, it's down to 6% after they've finished. Granted that's to do with my line of work.

Anyway back to the op, I'm happy if it stays at or above 27. Once it starts into the 25 range, it's not much fun for a holiday.

[sirineou]

Treasurer has no control over the currency. It's been floating since 1983.

The AUD is a commodity currency. Follow the iron ore price and you'll see where the aud is headed.

There are two variables at play here,

one high sovereign debt as a percentage of GDP, and the other is a high dependence of the economy on mineral commodities.

Two divergent Variables . As GDP declines, debt will become a higher percentage of GDP, as this becomes apparent perhaps a downgrading of Australia's credit rating is in the cards

http://www.bloomberg.com/news/articles/2015-04-29/goldman-sachs-sees-australia-s-aaa-rating-at-risk-of-downgrade

making debt maintenance more expensive.

In such a situation Monetizing the debt becomes attractive,

"

Monetizing debt is thus a two-step process where the government issues debt to finance its spending and the central bank purchases thedebt, holding it until it comes due, and leaving the system with an increased supply of money."

In such a way , the Treasury has some control,and might be able to devaluation the AUD

​PS: I am not Australian, anything I know is from monitoring markets, for the management of my personal investments, and I don't mind any correction from anyone who knows more about the situation,

Edited July 26, 2015 by sirineou

[opalred]

i thought the dollar was to float on world market

not the big mouth reserve treasurer telling the world what he wants the dollar to do

i was lucky built house and removed money from oz some years ago

now hockey can go stick you know what in big mouth of reserve bank <deleted>

[steven100]

Treasury has no way to control the $AUD ...... if it could it would have pushed it lower a long time ago.

The $AUD is controlled by international export commodity prices ... it's as simple as that, if china has to pay more for iron ore and coal then the $AUD would go up, as commodity prices slump and contracts get lower and lower from china then the dollar will follow ....

Also, on another note ... Australia needs to cut interest rates further if it wants to avert tinkering on borderline recession. I say this because with the dollar at .72 US and unemployment is much higher than indicated ... I believe it's unemployment rate is somewhere around 8-9% .. there are thousands of young & older people looking for work in every country town and city.

Very few mining and gas pipeline projects are ongoing at this time and many industries are laying off staff. The government needs to open up new industries in Tasmania, Victoria, NSW and other states, it needs to look into the future and not just the next few months.

It needs to create jobs for the average joe ... the unskilled ... it needs to build super highways and employ thousands as labourers, it needs to start new industries like timber, cultivate land for markets, build factories to employ thousands, build new bridges, employ new painters to restore buildings .... I believe the government is not doing enough to get people off benefits.

[sirineou]

Treasury has no way to control the $AUD ...... if it could it would have pushed it lower a long time ago.

The $AUD is controlled by international export commodity prices ... it's as simple as that, if china has to pay more for iron ore and coal then the $AUD would go up, as commodity prices slump and contracts get lower and lower from china then the dollar will follow ....

Also, on another note ... Australia needs to cut interest rates further if it wants to avert tinkering on borderline recession. I say this because with the dollar at .72 US and unemployment is much higher than indicated ... I believe it's unemployment rate is somewhere around 8-9% .. there are thousands of young & older people looking for work in every country town and city.

Very few mining and gas pipeline projects are ongoing at this time and many industries are laying off staff. The government needs to open up new industries in Tasmania, Victoria, NSW and other states, it needs to look into the future and not just the next few months.

It needs to create jobs for the average joe ... the unskilled ... it needs to build super highways and employ thousands as labourers, it needs to start new industries like timber, cultivate land for markets, build factories to employ thousands, build new bridges, employ new painters to restore buildings .... I believe the government is not doing enough to get people off benefits.

unfortunately government does not do that, Private industry and markets do all that, all that the government can do is create conditions conducive for private industry investment'

Unfortunately the Australian government is suffering the worst budget deficit in 60 years. so it's options are limited

http://www.afr.com/news/policy/budget/federal-budget-2015-worst-cumulative-deficits-in-60-years-20150512-gguuug

[Toknarok]

I see that an increase of the GST is being considered despit Abbotts promise pre election that there would be no increase. Despite it's political unpopularity I think its a foregone conclusion, wouldn't be surprised if it was 5% or more. That would make Australia one of the most expensive countries in the World to live.

[krisb]

I see that an increase of the GST is being considered despit Abbotts promise pre election that there would be no increase. Despite it's political unpopularity I think its a foregone conclusion, wouldn't be surprised if it was 5% or more. That would make Australia one of the most expensive countries in the World to live.

To be 1 of the best ain't cheap.

[seajae]

lets hope it doesnt, dont mind it hovering around 25 baht but would hate to see it belly out to less than 20 baht

[AlexRRR]

Treasury has no way to control the $AUD ...... if it could it would have pushed it lower a long time ago.

The $AUD is controlled by international export commodity prices ... it's as simple as that, if china has to pay more for iron ore and coal then the $AUD would go up, as commodity prices slump and contracts get lower and lower from china then the dollar will follow ....

Also, on another note ... Australia needs to cut interest rates further if it wants to avert tinkering on borderline recession. I say this because with the dollar at .72 US and unemployment is much higher than indicated ... I believe it's unemployment rate is somewhere around 8-9% .. there are thousands of young & older people looking for work in every country town and city.

Very few mining and gas pipeline projects are ongoing at this time and many industries are laying off staff. The government needs to open up new industries in Tasmania, Victoria, NSW and other states, it needs to look into the future and not just the next few months.

It needs to create jobs for the average joe ... the unskilled ... it needs to build super highways and employ thousands as labourers, it needs to start new industries like timber, cultivate land for markets, build factories to employ thousands, build new bridges, employ new painters to restore buildings .... I believe the government is not doing enough to get people off benefits.

I think your close to the real unemployment level in AU, i recon around 10% don't really agree about ways to get the country going again, both sides of politics haven't much of a clue but when Andrews killed the 3 billion or so that was ear make for a new freeway in Vic that pretty much destined us to another few years of hovering around the base line.

The mining boom of the previous 10 years only made the figures look good but very few actually benefit from it, the press talked it up but the rank and file worker didn't go anywhere.

Abbot is intent on making the little guy pay, big business is going to wake up one day and realise that by shrinking wages and with no growth in take home salaries few will be able to afford there products...Shorten and Labour are totally out of touch with reality, i know its tough times for the wide world but these are times when a great leader stands up, comes forward and we haven't had one in years....

[Rancid]

Depeciating the currency, now there is a novel idea no other countrys thought of yet. Aussie governments for ages have been completely useless and economically illiterate, they have just ridden the mining boom and picked up their director spots after retirement. Only China ramping up in the last bust from fear saved Oz then.

Currently there is a huge housing bubble that when pops will create a serious mess for overleveraged and underfunded banks. Last time in 2009 the US Fed bailed out Aussie banks with billions and the government had to set a guarantee on accounts to stop a feared bank run (it is foreign banks with well known names that apperently hold the majority of Aussue bank shares if the Fed action now makes more sense). Australia was recently nominated the country US corporations had the most fears about, yes, more than Greece.

I have no desire to have any large amount of money in an Aussie bank, appearently just like last time, if the world economy tanks the government does not have enough money to bail them out. Aussie banks as a percent of the economy are much larger than the US ones, they pose a massive risk. They will have to either nationalise them if things tank or use the bail-ins I believe are already in law. Many counties are now legislating depositor bail-ins as can't afford another bankster bailout.

Sure perhaps nothing will happen, but there again if it looks like a duck and quacks like a duck...

[White Christmas13]

I see that an increase of the GST is being considered despit Abbotts promise pre election that there would be no increase. Despite it's political unpopularity I think its a foregone conclusion, wouldn't be surprised if it was 5% or more. That would make Australia one of the most expensive countries in the World to live.

Get your facts right

[giddyup]

Depeciating the currency, now there is a novel idea no other countrys thought of yet. Aussie governments for ages have been completely useless and economically illiterate, they have just ridden the mining boom and picked up their director spots after retirement. Only China ramping up in the last bust from fear saved Oz then.

Currently there is a huge housing bubble that when pops will create a serious mess for overleveraged and underfunded banks. Last time in 2009 the US Fed bailed out Aussie banks with billions and the government had to set a guarantee on accounts to stop a feared bank run (it is foreign banks with well known names that apperently hold the majority of Aussue bank shares if the Fed action now makes more sense). Australia was recently nominated the country US corporations had the most fears about, yes, more than Greece.

I have no desire to have any large amount of money in an Aussie bank, appearently just like last time, if the world economy tanks the government does not have enough money to bail them out. Aussie banks as a percent of the economy are much larger than the US ones, they pose a massive risk. They will have to either nationalise them if things tank or use the bail-ins I believe are already in law. Many counties are now legislating depositor bail-ins as can't afford another bankster bailout.

Sure perhaps nothing will happen, but there again if it looks like a duck and quacks like a duck...

Suggest a bank that's accessible and safe if the world economy tanks, as you put it.

[Tomtomtom69]

Excellent, I am currently being paid in US dollars. I love Australia but have left there due to the high tax and nanny state attitude.

High tax, high rates, high cost of food...they have turned the lucky country into a high cost and little return place.

Australians are truly being ripped off by the government...sure the place is nice but Aussies are paying a huge price for it compared to other country's.

Compared to what countries? Bit unfair to compare.

Tax is high, but any decent accountant gets it way down. Think it's 25% my original tax, it's down to 6% after they've finished. Granted that's to do with my line of work.

Anyway back to the op, I'm happy if it stays at or above 27. Once it starts into the 25 range, it's not much fun for a holiday.

Personal income taxes aren't too bad anymore in Australia by international comparison. Tax-free threshold is now A$18,400 compared to just A$6000 a couple of years ago and A$5400 before that. Top tax rates are down to 45% compared to 47% in the past and now kick in at much higher incomes than in the past. Other marginal rates have decreased and kick in at higher rates.

What is however infuriating is the high cost of living. High food prices, high housing prices. However, cars and most other imported goods are relatively cheap, thanks to virtually no import taxes and a general lack of protectionism in most sectors.

[yadongbreakfast]

No more Aussie hogans in phuket then.

Good riddance to the tatooed w@#$%rs

[steven100]

The RBA again yesterday at it's meeting failed to understand the truth on how the real Australian economy is fairing by leaving interest rates unchanged.

Unemployment is ticking up ... probably now around 10%

Cost of living is rising .... monthly

Cost of Rental is increasing in capital cities.

Everyday there are reports of workers being layed off. Why are there no jobs being created by the government ????

The RBA indicated that it was more satisfied with the $AUD vs $US at this time ...... ( That day it kicked back up to .74 c )

With high job losses, increased unemployement ... rising food costs, general household expenses going up .... transport costs increasing ... Australia is headed for a very touch time over the next 1-5 years in my opinion.

They may avert a recession, but it will surely feel like it's the twin brother ....

[giddyup]

No more Aussie hogans in phuket then.

Good riddance to the tatooed w@#$%rs

You join 3 days ago just so you can badmouth Aussies? So brave.

[Tomtomtom69]

The RBA again yesterday at it's meeting failed to understand the truth on how the real Australian economy is fairing by leaving interest rates unchanged.

Unemployment is ticking up ... probably now around 10%

Cost of living is rising .... monthly

Cost of Rental is increasing in capital cities.

Everyday there are reports of workers being layed off. Why are there no jobs being created by the government ????

The RBA indicated that it was more satisfied with the $AUD vs $US at this time ...... ( That day it kicked back up to .74 c )

With high job losses, increased unemployement ... rising food costs, general household expenses going up .... transport costs increasing ... Australia is headed for a very touch time over the next 1-5 years in my opinion.

They may avert a recession, but it will surely feel like it's the twin brother ....

Yes you only ever hear about Aussie jobs being lost with few new jobs being created. What a farce. As an Aussie resident, I would be outraged (actually even as an Aussie expat I'm almost equally outraged even though the situation doesn't necessarily affect me directly, but is one reason why I'm not living there because there are no jobs and nobody wants to hire).

About the only way out of this mess is if you're a business owner who runs a recession proof business, either one that is reliant on overseas customers (which given the current low value of the A$ is not a bad customer base to have at the moment) or running a business that sells goods or services that everyone needs no matter what.

[halloween]

Personal income taxes aren't too bad anymore in Australia by international comparison. Tax-free threshold is now A$18,400 compared to just A$6000 a couple of years ago and A$5400 before that. Top tax rates are down to 45% compared to 47% in the past and now kick in at much higher incomes than in the past. Other marginal rates have decreased and kick in at higher rates.

What is however infuriating is the high cost of living. High food prices, high housing prices. However, cars and most other imported goods are relatively cheap, thanks to virtually no import taxes and a general lack of protectionism in most sectors.

Oz tax is sweet for me. I work 26 weeks (to be a tax resident) making around $1000 per and pay $1500 or so tax. The trick is to spend as little as possible, not hard when you are working 6 of 7, and bring the rest back here. The g/f enjoys the holiday (from me) almost as much as the cash flow.

[simple1]

The RBA again yesterday at it's meeting failed to understand the truth on how the real Australian economy is fairing by leaving interest rates unchanged.

Unemployment is ticking up ... probably now around 10%

Cost of living is rising .... monthly

Cost of Rental is increasing in capital cities.

Everyday there are reports of workers being layed off. Why are there no jobs being created by the government ????

The RBA indicated that it was more satisfied with the $AUD vs $US at this time ...... ( That day it kicked back up to .74 c )

With high job losses, increased unemployement ... rising food costs, general household expenses going up .... transport costs increasing ... Australia is headed for a very touch time over the next 1-5 years in my opinion.

They may avert a recession, but it will surely feel like it's the twin brother ....

Can you share the site that talks to unemployment rate of 10% and no new jobs being created? Very different to other news reports e.g...

http://www.abc.net.au/news/2015-08-06/job-creation-on-the-rise-experts-predict/6675770

[samuibeachcomber]

I see that an increase of the GST is being considered despit Abbotts promise pre election that there would be no increase. Despite it's political unpopularity I think its a foregone conclusion, wouldn't be surprised if it was 5% or more. That would make Australia one of the most expensive countries in the World to live.

maybe it already is!...there was talk of doubling the medicare payment when putting in tax returns,but an increase in GST would be easier.Both labour and libs new this deficit was coming since 2008...mining tax and carbon tax both ditched..........easier to tax the masses.

[Anthony5]

Thanks for the tip but 24 or 25 baht to the dollar still ain't bad. Those days of 30-32 were unsustainable and I personally was surprised how long they lasted. When I first came here it was 18-19 then early 2000's it rarely went above 23 so I guess we have come full circle. I would be happier with 28 though

Strange but that doesn't sound like the majority of comments I was reading on this forum when the AU$ was 33 -34 and paying 8% on a savings account.

[Soutpeel]

No more Aussie hogans in phuket then.

Good riddance to the tatooed w@#$%rs

And how fat, bald and ugly are you seeing as we are making judgements on peoples appearances ?

Or do you wear a nylon shirt and tie to work and pose as an " English" teacher or are you a pikey ?

Edited August 10, 2015 by Soutpeel

[opalred]

great were left with fat bald humourless pommies