Federal Budget

[frenzal_tom]

Wots ppls opinions on the federal budget? will u be beta off?

[MOTIV8]

I don't know yet!

It will take awhile to kick in and and even then will take months for the actual effects for it to take affect in every day life.

[TheForgotten]

$ effectscan be felt next week. if you earn between 30-50k p/a you'll get a whopping $10 extra per week.
but I think these budget and tax reforms are BS as of about 2 months ago, there were 50something households in australia with an income of over 1mil a year, and 70something earning over 1/2mil still getting family tax benefit, and those of us on reletively lower incomes get shit all.
Howard's buying his votes, by looking after "X" group of aussies, he's guarenteed their vote for next election, and those who don't want him in will have the greatest benefit from his demise.....


ARGH POLITICS I'm leaving this one now

[MOTIV8]

$ effectscan be felt next week. if you earn between 30-50k p/a you'll get a whopping $10 extra per week.
but I think these budget and tax reforms are BS as of about 2 months ago, there were 50something households in australia with an income of over 1mil a year, and 70something earning over 1/2mil still getting family tax benefit, and those of us on reletively lower incomes get shit all.
Howard's buying his votes, by looking after "X" group of aussies, he's guarenteed their vote for next election, and those who don't want him in will have the greatest benefit from his demise.....


ARGH POLITICS I'm leaving this one now

That whopping $10 dollars a week will be eaten straight up by the increased price of petrol, the price rise of bread, milk, fruit and veges and the rest of it.

I read an article where they did a comparison of the price of petrol and basic goods in 1986 and when all the adjustments were made and taking into account inflation etc etcd that life is cheaper now then it was then............... go figure.

[Troy711]

my extra 10 bucks a week says that the GST will go up within 3 years

[minux]

the budget is a joke, it make's no sense, low income $30 per week better off, middle income $10 per week, high income $120 a week better off...now how i dont get how it works is, my 60k per year x 2 is equal to 120k, that would in the government's theory give me $20 extra a week, how can they justify the 120 a week better off for these people? it doesnt work out.

It's time someone assasinate's the whole liberal idea of having a lower and a upper class. Low income should be 120 a week better off, middle income 60 a week better off, and high oncome $10, it would make so much more sense.

[Troy711]

the rich get richer and the poor get poorer

[Fekason]

Certainly Costello was more adventurous with this budget than I expected.

I think that it has some good points, and a few not so good.

However, life does not depend totally on the budget.

IMHO, the clearing of federal government debt is the big plus. As taxpayers, we don't have to pay tax for interest payments and, without competition from government borrowings, our interest rates may be lower than they otherwise would.

Hands up those who remember mortgage rates at 17% towards the end of the previous mob's turn. Now wouldn't that do wonders to the economy when 7.5% is raising hackles.

[DavoTheGreat]

I haven't sat down and read the whole budget yet but if they want to make me happy they need to reduce the tax levels on things other than income tax, like the petrol excise, some foods and other dependables that are slugged with tax. Sure I'll be $25 per week better off with the small reduction in income tax so that'll counter the increase in petrol prices for the time being, but otherwise it doesn't do much for me.

We need to all move to the Isle of Man where there is no income tax and no speed limits

[Julie]

God I get sick of those paying less tax whinging they aren't getting enougth back. Its all based on percentages. Someone making lots of cash was paying 47% tax why the hell shouldn't they get more back, they contribute more in the first place. Fairness would be a single across the board tax rate. Nothing pisses me off more than hubby doing a bit of OT and the govt taking half it in taxes. Its a joke the harder you work, the more you get taxed and the less stuff you get in return. No wonder theres so many dole bludgers.

[VS Omega]

A bit off topic, but has anyone heard about the UK about to finally repay their World War 2 debts to the United States?

Interesting read for anyone who cares http://news.bbc.co.uk/1/hi/magazine/4757181.stm

[minux]

I haven't sat down and read the whole budget yet but if they want to make me happy they need to reduce the tax levels on things other than income tax, like the petrol excise, some foods and other dependables that are slugged with tax. Sure I'll be $25 per week better off with the small reduction in income tax so that'll counter the increase in petrol prices for the time being, but otherwise it doesn't do much for me.

We need to all move to the Isle of Man where there is no income tax and no speed limits

Theyw ouldnt need to remove tax's on food if they dropped fuel excise. AT the moment our customer's are paying us a 16% fuel levy, they need to get that back somehow, as long as fuel keep's rising our fuel levy will also, which in turn's cause's suppliers to up product price to cover these cost's.

[angelo.vs]

I think everyone will be better off. The low income tax off set has been increased from $235 to $600 and the tax thresholds have been increased.

Reason why high income earners are getting more take home money is because the higher income tax rates have been reduced. I dont understand why people get so worked up about the rich getting richer etc because at the end of the day they earn more (gross) but its the tax thats preventing them from taking a bit more money home.

Business owners will also benefit from the budget due to an increase in value of the diminishing rate in depreciation which means they can claim more.

[MasterOfReality]

I was interested in the income tax cuts.

Its about time the top tax rate was reduced (although its still far too high) and the threshold lifted to when the top rate kicks in.

Although, I think they also should have raised the tax free threshold to around $10,000 or $12,000.

I'm sick of hearing all the so-called disadvantaged having a whinge about the high income earners. Why shouldn't they get a bigger tax break? The ones employed under salary pay more tax in the first place!!!!!!

Bring on a flat tax rate!!

[angelo.vs]

Although, I think they also should have raised the tax free threshold to around $10,000 or $12,000.

I'm sick of hearing all the so-called disadvantaged having a whinge about the high income earners. Why shouldn't they get a bigger tax break? The ones employed under salary pay more tax in the first place!!!!!!

Bring on a flat tax rate!!

Definitely agree with that.

[Spyper]

A flat tax rate? Are you kidding?

I earn 12,000 (hypothetically) and have to pay 30% tax for instance. I pay my $4000 and am left to survive on 8,000 a year? You earn 120,000, you pay your 40,000 and are left to survive on 80,000 a year. GRANTED that you are paying a shitload, but you have a lot more 'disposable' income. You've got all the necessities covered and everything else is gravy. Whereas I have to go and punch someone in the face to earn the extra $1000 I need just to eat for the year, because I do not have the skills (coupled by new 'work choices' legislation) to get a decent paying part or full time job, because all small businesses are now only employing casual workers.

Now that's out of my system..

There is never going to be a 'fair tax' that everyone would be happy paying. Low income earners haven't got disposable income to just dish away. High income earners shouldn't have to throw away half their money because they have the skills to work a higher paying job. However, we would all be getting greater tax relief if company and high income earners paid what they were supposed to be paying, instead of creating and finding little tax loop holes.

I see this as a double edged sword though.. if tax was 'fairer' they wouldn't need to (but I assume still would) cheat on tax.

Capitalism is never going to be fair. The division between poor and rich needs to be accentuated to drive people to do better. Communism is by far the greatest idealogy (IMO) but in practise is never going to happen.

[minux]

I was interested in the income tax cuts.

Its about time the top tax rate was reduced (although its still far too high) and the threshold lifted to when the top rate kicks in.

Although, I think they also should have raised the tax free threshold to around $10,000 or $12,000.

I'm sick of hearing all the so-called disadvantaged having a whinge about the high income earners. Why shouldn't they get a bigger tax break? The ones employed under salary pay more tax in the first place!!!!!!

Bring on a flat tax rate!!

Sorry a flat tax rate doesnt work, it make's it unfair on low income earner's.

My argument is this, how do low income earner's and high income earners get such a huge break in comparison to middle man? Low income i am happy with, but middle income should be somewhere in between low and high it stand's to reason.

[AirStrike]

All I know is that with the change to the tax brackets I might just scrape into a lower bracket, meaning I will pay half the tax I used to. Suits me!
AirStrike

[MasterOfReality]

How does it make it unfair on low income earners????

Everybody would pay the same proportion of their income as tax. No more arguments about people not paying their fair share.

A progressive tax system is unfair to high income earners.

I personally think its about time salaried high income earners are given a huge break.

The middle income families got huge tax relief, only catch is you have to have kids.

That is one point of the budget that I don't agree with. If you can't afford to have kids, you can't expect the taxpayer to pick up the bill. I don't get my carton of beer and tank of petrol a week for free do I?

[Spyper]

Wow comparing kids to beer and petrol? You ****ing serious? We need kids to populate our country.. it's every persons basic right to have children. What you just said was extremely stupid! "Let kids get sick, not go to school and be educated so they stay the low life scum they are, let them go without clothes and food.. so I can drink a 6 pack of beer each week". I don't usually swear on this forum, but you are a ****ing tard.

If everyone paid the same amount of tax, 'low income earners' would die off. Not being able to afford basic food, housing, health, and even gas bills. Think a little before just saying what suits your bracket better. I'm in the low to middle tax bracket (full time uni student, 35 hour week work) and I couldn't afford to be paying a morgage yet, and I'm alot better off then alot of people.

Even I can see that low income families need a huge break. They're barely being able to stay alive, much less above the poverty line. While the high income earners are saying "but I can't buy that EXTRA nice car I want, I'll have to settle for an $80,000 car. Get it?

Don't be so arrogant about the world. Maybe if you had the chance to live in the situation of a low income family, you'd understand. I've put myself in the place of the high-income earners, and sure it sucks to be taxed half your pay. BUT.. you're still alot ALOT better off then low-income earners.

Taxes are set in-proportion to wages/salaries, cost of living, indexed against the CPI, and all that other economic stuff. Incorporate tax into your income instead of thinking about it as "I'm losing half my money" just understand that your wage AFTER tax, is you're full income. Everything is priced accordingly to that.

That's my biggest argument.. everything is in proportion. Your income AFTER tax is your full income, or at least, that's how it should be viewed.

[Julie]

Well said there MasterOfReality, I think equality is fairness. A flat tax rate makes everyone equal. From what I quickly worked out our family should be about $52 a week better off which will be very handy.

If low income earners want more disposable income they shouldn't look for tax cuts to provide it, they should look at themselves, get skilled, get a better job, get a better income, its simple really. I don't see why those who have made good life decisions should be penalised and have to pay more tax to compensate for those who haven't.

[MasterOfReality]

Wow comparing kids to beer and petrol? You ****ing serious? We need kids to populate our country.. it's every persons basic right to have children. What you just said was extremely stupid! "Let kids get sick, not go to school and be educated so they stay the low life scum they are, let them go without clothes and food.. so I can drink a 6 pack of beer each week". I don't usually swear on this forum, but you are a ****ing tard.

If everyone paid the same amount of tax, 'low income earners' would die off. Not being able to afford basic food, housing, health, and even gas bills. Think a little before just saying what suits your bracket better. I'm in the low to middle tax bracket (full time uni student, 35 hour week work) and I couldn't afford to be paying a morgage yet, and I'm alot better off then alot of people.

Even I can see that low income families need a huge break. They're barely being able to stay alive, much less above the poverty line. While the high income earners are saying "but I can't buy that EXTRA nice car I want, I'll have to settle for an $80,000 car. Get it?

Don't be so arrogant about the world. Maybe if you had the chance to live in the situation of a low income family, you'd understand. I've put myself in the place of the high-income earners, and sure it sucks to be taxed half your pay. BUT.. you're still alot ALOT better off then low-income earners.

Taxes are set in-proportion to wages/salaries, cost of living, indexed against the CPI, and all that other economic stuff. Incorporate tax into your income instead of thinking about it as "I'm losing half my money" just understand that your wage AFTER tax, is you're full income. Everything is priced accordingly to that.

That's my biggest argument.. everything is in proportion. Your income AFTER tax is your full income, or at least, that's how it should be viewed.

Ahem,

I gave up a high income position to go back to uni. I earn a whopping $350 a week to support myself, so I too know about both sides.

Yes, its everybodies basic right to have kids, but for example why should my taxes pay for some effing single mother who has 5 kids from 3 different blokes? Or a family who are on the bones of their ass and then decide to compound their problems by having kids? Come off it dude, get serious here. My parents got sweet **** all from the government when I was young because they were deemed to be high income earners and could 'afford' to have kids.

It works in reverse too buddy.

Your argument about tax doesn't make sense. At the end of the day, the higher income earners still pay more tax, and in a higher proportion than low income earners. Nothing fair about that.

Dude, to be honest, I can't really give a **** about the plight of the lower income earner. Sounds harsh, but that is my natural reaction to the tall poppy syndrome that seems to be so prevalent in this country!!!!!!!

[Demons1964]

All I know is that with the change to the tax brackets I might just scrape into a lower bracket, meaning I will pay half the tax I used to. Suits me!

How I wish it were that simple. Sorry to be the bearer of bad news but unfortunately you only end up paying the higher tax rate on the amount you earn above the bracket rate. In simpler terms let's say you're on $24,000 per year. Ignoring the medicare levy and low income offsets, according to the current tax rates you pay $0 on the first $6000 you earn, plus $0.15 for each extra dollar up to $21,600, plus $0.30 for each dollar over that. Comes to $0 + $2340 + $720 = $3060. So the actual tax you're paying is 12.75% of your gross income.

Under the new 2006-07 tax brackets, you pay $0 on the first $6000 you earn, and $0.15 for each extra dollar up to $25000 = $2700 or 11.25% of your gross income.

So scraping into a lower tax bracket doesn't mean you're paying half the tax, it just means you're paying half on whatever you earn over $21,600. There's no mystical barrier that you need to keep below to avoid going into the next higher tax bracket where half your pay will disappear!!

Mark.

[AirStrike]

How I wish it were that simple. Sorry to be the bearer of bad news but unfortunately you only end up paying the higher tax rate on the amount you earn above the bracket rate. In simpler terms let's say you're on $24,000 per year. Ignoring the medicare levy and low income offsets, according to the current tax rates you pay $0 on the first $6000 you earn, plus $0.15 for each extra dollar up to $21,600, plus $0.30 for each dollar over that. Comes to $0 + $2340 + $720 = $3060. So the actual tax you're paying is 12.75% of your gross income.

Under the new 2006-07 tax brackets, you pay $0 on the first $6000 you earn, and $0.15 for each extra dollar up to $25000 = $2700 or 11.25% of your gross income.

So scraping into a lower tax bracket doesn't mean you're paying half the tax, it just means you're paying half on whatever you earn over $21,600. There's no mystical barrier that you need to keep below to avoid going into the next higher tax bracket where half your pay will disappear!!

Mark.

LMAO! Once I posted that im like heyyyyy that seems to good to be true. Damm!
AirStrike

[MasterOfReality]

Well said there MasterOfReality, I think equality is fairness. A flat tax rate makes everyone equal. From what I quickly worked out our family should be about $52 a week better off which will be very handy.

If low income earners want more disposable income they shouldn't look for tax cuts to provide it, they should look at themselves, get skilled, get a better job, get a better income, its simple really. I don't see why those who have made good life decisions should be penalised and have to pay more tax to compensate for those who haven't.

Good on ya Julie