Tax Cuts how did you do...

[brenx]

Originally Posted by fantz

Going by that doesn't the 'what you'll save' table indicate you'll be getting a $510 saving per year ?

$510 a year when fuel etc etc is going up is nothing as far as I'm concerned. I've been watching my standard of living rapidly decline.

[brenx]

Originally Posted by Angry Beaver

Brenx I thought that started this tax time anyway? Thats what I heard from a pamphlet at daycare ages ago.

I got the same pamphlet. I'm pretty sure your right.

[MightyXR6Turbo]

Originally Posted by brenx

Going by that tax table. It looks like I get nothing. I was getting taxed 30% before and I'll be getting taxed 30% still. I earn $48,000-$53,000pa.

I beg to differ, you will get a difference. Your whole wage is NOT taxed @ 30%. Its a sliding scale.

So 0-6000 = 0%, $6001-25000 = 15% then from $25001 to the end of your wage ($53,000) is at 30%.

That is a vast change for you. Previous to the changes, as in this financial year, you are currently paying 15% only on $6001-21600, then $21601-$53,000 is @ 30%.

So if you are over $25,000, you definately benefit... Most people do.

This isn't new, this was all stuff that was put in last years budget and put in writing that it will change in this financial year. Its just that they can announce it for this next FY in their Budget speech. But it is definately not new, this was always going to happen, it was legislated with the reduction of the lowest tax rate from 17% to 15%.

Also in saying that, none of those tables recognise the fact that you have to pay 1.5% of your wage in Medicare Levy, then when you exceed $50,000 as an individual (or $100,000 as a family combined income plus $1500 on that threshold for every child after the first) then you have to pay Medicare Levy Surcharge which is another 1% of your taxable income if you do not have private health insurance.

Food for thought

[brenx]

Originally Posted by MightyXR6Turbo

I beg to differ, you will get a difference. Your whole wage is NOT taxed @ 30%. Its a sliding scale.

So 0-6000 = 0%, $6001-25000 = 15% then from $25001 to the end of your wage ($53,000) is at 30%.

That is a vast change for you. Previous to the changes, as in this financial year, you are currently paying 15% only on $6001-21600, then $21601-$53,000 is @ 30%.

So if you are over $25,000, you definately benefit... Most people do.

This isn't new, this was all stuff that was put in last years budget and put in writing that it will change in this financial year. Its just that they can announce it for this next FY in their Budget speech. But it is definately not new, this was always going to happen, it was legislated with the reduction of the lowest tax rate from 17% to 15%.

Also in saying that, none of those tables recognise the fact that you have to pay 1.5% of your wage in Medicare Levy, then when you exceed $50,000 as an individual (or $100,000 as a family combined income plus $1500 on that threshold for every child after the first) then you have to pay Medicare Levy Surcharge which is another 1% of your taxable income if you do not have private health insurance.

Food for thought

refer to post 31. I can easily make my taxable income decrease. I have plenty I can claim as we use our private car for travel between workplaces. I earnt 48k last financial. On paper I actually earnt $42k.

I wouldn't bother with private health insurance till I earn around $60k. A mate of mine does and he's financially worse off this year. He had a triple by-pass. He's had to take out a loan to pay medical costs even though he has full cover with NIB. If it was me? I'd have been two things, fixed under a public system or be dead with nothing to worry about.

[MightyXR6Turbo]

brenx - I only mentioned the Medicare Levy Surcharge for everyones benefit, I wasn't particularly saying about you. I dont have it personally, but again, as I said, I was just making a point.

When you think about it, it isn't really cost effective if you are reasonably healthy to do it unless you hit $100,000 because then its only $1000, and thats how much most Private Health insurances cost for a year.. I realise this.

[galaxy xr8]

Going by that scale, between my partner and I we will be $75 a week or $150 a fortnight better off, that's better in our pocket, and better than nothing.

[MO]

And once again the rich get richer and the poor get poorer....on a percentage scale the middle to low incomes are worse off than the middle to high incomes as usual under a pathetic liberal govt.

[Casper]

Originally Posted by John McMaster

And once again the rich get richer and the poor get poorer....on a percentage scale the middle to low incomes are worse off than the middle to high incomes as usual under a pathetic liberal govt.

John... dont. This is NOT going to turn into a political thread. The tax is what it is and up for discussion.. the politics isnt.

[MightyXR6Turbo]

Originally Posted by John McMaster

And once again the rich get richer and the poor get poorer....on a percentage scale the middle to low incomes are worse off than the middle to high incomes as usual under a pathetic liberal govt.

Ok, I'm not the biggest fan of the current govt, but the fact is, in the last two financial years, the biggest advantage of tax rates has happened to low income earners. But in saying that, it applies to everyone, it is at least reasonably fair. I can't seem to recall any Labor govt's reducing income tax? If I'm wrong, I'm happy to be proven wrong...

Fact is, The lowest tax bracket (6000-21600) was reduced from 17% to 15%, then this next financial year it is being stretched out from $21600 to $25000. The Medicare Levy threshold is being extended up (not totally sure of the amount, but I am aware that it is getting higher). The Low income Earner tax offset is heard to be moved from $250 to $600, again a vast difference.

I fail to see how anyone on a low income got shafted on this budget?

Would you rather that none of those happened? Also the base amount of Family Tax Benefit part A is increasing (as a single person that means I still get squat all, but it helps Families). There is the introduction of Child Care Benefit (It is absolutely ridiculous how it is set up, however it still gives money to families).

So really, how are the poor getting poorer in relation to this topic?

[MO]

Casper ..point taken no more from me..

Mighty xr6turbo...re above.....

[pertuan]

I'll drink to any tax breaks. I'm about 10 bucks a week better off. Not much but its 10 bucks that I didnt have before, so I'm happy. I'm rather confused with this Medicare levy thing though cause my employer gives me full medical and dental insurance. Does this mean that (according to tax purposes), I dont have private insurance?

Anyway, back to the point... lower tax = more money = happy me.

[Mark351]

I'm happy with my tax cut!

[gtfpv]

I wouldn't bother with private health insurance till I earn around $60k. A mate of mine does and he's financially worse off this year. He had a triple by-pass. He's had to take out a loan to pay medical costs even though he has full cover with NIB. If it was me? I'd have been two things, fixed under a public system or be dead with nothing to worry about.[/QUOTE]

.
this is slightly off topic but i think it is important and i'm only replying to this post. if your friend needed a triple bypass . in the public system he would be on a waiting list and most probably sent home until a doctor becomes available which coud be months . most likely by then he would be risking sudden death/ OR a heart attack or an emergancy operation with the doctor on duty and aneasthetist. these guys could be at the end of a 9 hour shift when they cut him open. in the worst case scenario his emergancy may happen when the hospital is overloaded on a bad day in which case he could die in emergancy room on a bed in the hallway.
but instead your mate had a triple by pass on an appointed day with a hospital booked , the doctors own aneathetist and a plan of exactly what was to be done before the operation. the advantage of this is that the doctors arent rushed coping with emergancies all day night as well
it is important to know the differance. a planed operation is always better than an emergancy. chances of unforseeable things are far less likely.
just thought people should know this.

[gtfpv]

yes i was very impressed with the budget.

[brenx]

Originally Posted by gtfpv

I wouldn't bother with private health insurance till I earn around $60k. A mate of mine does and he's financially worse off this year. He had a triple by-pass. He's had to take out a loan to pay medical costs even though he has full cover with NIB. If it was me? I'd have been two things, fixed under a public system or be dead with nothing to worry about.

.
this is slightly off topic but i think it is important and i'm only replying to this post. if your friend needed a triple bypass . in the public system he would be on a waiting list and most probably sent home until a doctor becomes available which coud be months . most likely by then he would be risking sudden death/ OR a heart attack or an emergancy operation with the doctor on duty and aneasthetist. these guys could be at the end of a 9 hour shift when they cut him open. in the worst case scenario his emergancy may happen when the hospital is overloaded on a bad day in which case he could die in emergancy room on a bed in the hallway.
but instead your mate had a triple by pass on an appointed day with a hospital booked , the doctors own aneathetist and a plan of exactly what was to be done before the operation. the advantage of this is that the doctors arent rushed coping with emergancies all day night as well
it is important to know the differance. a planed operation is always better than an emergancy. chances of unforseeable things are far less likely.
just thought people should know this.[/QUOTE]He didn't do that. He went in having a mild heart attack. He was transfer by ambulance from Frankston to a hospital which could accomodate his op straight away. He was in an emergency there and then. The same would have happened if whomever walked in having a mild heart attack was on the public system.

I'll pm you as well.

[sfr rob]

i personally dont care how much i am "getting back" from the gov, they rip me off everywhere else and make that back on me 5 fold... the joys or running a business.... :(

[davocol]

Private health is something I am looking at the moment, any one have any recomendations? Slightly off topic, this change is good for me. I am about 25 dollars better off per week which will pay for the petrol price rise .

If the tax breaks were aimed at low income earners the tax free threshold would have increased to 10000, anything in between is marginal for low income eaners. In saying that though there are some other things that have simplified including the part year tax free threshold which is good for students.

Did anyone see if the help (hecs) compulsory rates have changed? I could not find anything about it.

[brenx]

sfr rob I know the feeling. I closed my business down when the GST was brought in. I got sick of paying.

[sfr rob]

dont like to post off-topic stuff but here goes..i am with HBA private health insurance... i promptly signed up after leaving hosptital after having emergency surgery last year.. the public system SUCKS, and i was left in emergency for hours, but with private insurance, hopefully if i ever need it, there wont be such a long wait again.

[MightyXR6Turbo]

Originally Posted by davocol

If the tax breaks were aimed at low income earners the tax free threshold would have increased to 10000, anything in between is marginal for low income eaners. In saying that though there are some other things that have simplified including the part year tax free threshold which is good for students.

Did anyone see if the help (hecs) compulsory rates have changed? I could not find anything about it.

Yeah the tax free threshold needs to increase, I hear it is due to increase either in the 07/08 or 08/09 financial years.
The part year tax free threshold for students was totally stupid, and for some reason has only become an issue in recent years, in any event it is good to see that its gone because it was totally counter productive.

Depending on the low income earner, there are a fair few thin'gs open, particuarly if they receive a Centrelink pension (Parenting Payment Single comes to mind), then they definately get a reasonable go in regards to taxation. Their tax free threshold essentially is equal to $19,252 (04/05 Financial Year) because of the Pensioner Tax Offset.

As for HECS rates, from what I know there is no change, last year had the massive change from $25,000 to $35,000 of compulsary repayments, again I don't think they are due to change for a few more years yet.

[MightyXR6Turbo]

Originally Posted by pertuan

I'll drink to any tax breaks. I'm about 10 bucks a week better off. Not much but its 10 bucks that I didnt have before, so I'm happy. I'm rather confused with this Medicare levy thing though cause my employer gives me full medical and dental insurance. Does this mean that (according to tax purposes), I dont have private insurance?

Anyway, back to the point... lower tax = more money = happy me.

Provided that the insurance is full HOSPITAL cover, it can have extras in it, but it must be hospital cover, and have an excess of less than $500, then yes, that will have you covered for tax purposes.

[davocol]

Yeah my guess we wont see a threshold change for quite some time, it would be interesting to see how much a 1000 increase would actually cost, it would be massive I think.

I basically ignored the part year threshold as it was completely unfair if you were working part time while studying, it basically punished you for studying, ridiculous.

The compulsory help payments are a joke as they are not scaled, when I was contracting my weekly pay varied so much that I was always getting a bill at the end of the year, not to mention how much indexation they charge on the debt, I think to date it is round about 15% (within 4 years) of the total amount borrowed, interest free loan my . I really need to get rid of it in a lump sum, although you only save 10% now compared with 25% about 3 years ago, something that was taken away. Ahh the joys of it all.

Originally Posted by MightyXR6Turbo

Yeah the tax free threshold needs to increase, I hear it is due to increase either in the 07/08 or 08/09 financial years.
The part year tax free threshold for students was totally stupid, and for some reason has only become an issue in recent years, in any event it is good to see that its gone because it was totally counter productive.

Depending on the low income earner, there are a fair few thin'gs open, particuarly if they receive a Centrelink pension (Parenting Payment Single comes to mind), then they definately get a reasonable go in regards to taxation. Their tax free threshold essentially is equal to $19,252 (04/05 Financial Year) because of the Pensioner Tax Offset.

As for HECS rates, from what I know there is no change, last year had the massive change from $25,000 to $35,000 of compulsary repayments, again I don't think they are due to change for a few more years yet.

[Work Horse]

Well the wife and I are going "tong and hammer" to have another child.

It's a tuff job but someone has to do it :evil3:

[gtfpv]

:thebirds: : : : :eclipsee_ : : :baby bott

Originally Posted by Work Horse

Well the wife and I are going "tong and hammer" to have another child.

It's a tuff job but someone has to do it :evil3:

[AWD Chaser]

Originally Posted by Work Horse

Well the wife and I are going "tong and hammer" to have another child.

It's a tuff job but someone has to do it :evil3:

Aim for triplets - you'll get $12,000!!!!!!

Looks like I'll be saving enough to change over to LPG!

[pertuan]

Originally Posted by MightyXR6Turbo

Provided that the insurance is full HOSPITAL cover, it can have extras in it, but it must be hospital cover, and have an excess of less than $500, then yes, that will have you covered for tax purposes.

So... I shouldnt have to pay the Medicare levy then cause I'm sure that ADF is full hospital cover. At least it darn well better be.

[AWD Chaser]

So much for a "Substantial tax cut".

Substantial by my books would be about $20 or more per week!

[qwigybo]

according to that i was at 30% and will still be at 30% how can i save $510

[davocol]

Its due to the fact you will no longer be paying 30% on the amount between 25000 and 21600, you will now be paying 15%.

(25000 -21600) * 30% = $1020

you will now be paying 15% for the difference

(25000 -21600) * 15% = $510

$1020 - $510 = $510 saving

Cheers

Originally Posted by qwigybo

according to that i was at 30% and will still be at 30% how can i save $510

[TheSneakiness]

I was talking about it with the guy I board with last night and we agreed that what tax cuts everyone got have already been spent on whatever hikes on other things that may come our way.

I'm one of the "lucky" ones who is going to get $910/year back.