FYI: Tax rates going up

[cheap]

Lost in the fanfare from Carbon Sunday is that effective tax rates will be increased (now there is a surprise - Not).

Yes the tax free threshold has increased from $6,000 to $18,000

BUT

From 18,001 to 37,000 the marginal rate has increased from 15% to 19%
From 37,001 to 80,000 the marginal rate has increased from 30% to 32.5%

Bottom line about a $35 increase in tax (assuming you earn over $80,000 pa)

I thought I heard someone said "only the top 500 big polluters that were going to pay..."

[Jim Goose]

While I dont agree with the carbon tax.... it always helps to show everything proposed:

Widespread tax cuts but 3 million households hit
Phillip Coorey
July 11, 2011

A $15 BILLION combination of tax cuts, pension increases and boosted family payments will be used to compensate the majority of households for the impact of the carbon tax, which is forecast to add $514 to annual expenses.

While 4 million households will be overcompensated and 2 million more will be no worse off, almost 3 million will go backwards. Of these, 2 million will be partially compensated for the impacts of a carbon price and 700,000 of the nation's 8.8 million households will receive nothing.

This latter category is comprised mainly of singles earning more than $80,000 a year and couples earning a combined income of more than $180,000, although family compensation varies markedly depending on income breakdown and the numbers and ages of children.
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Dual-income couples tend to start going backwards once combined income exceeds $100,000 and singles start to go backwards from about $60,000 onwards.

''There's no money tree, there's no endeavour here to try and pretend that everybody's better off,'' Julia Gillard said.

The scheme will begin on July 1, 2012, with the nation's 500 top polluters paying $23 for each tonne of carbon they emit.

This carbon price will be indexed upwards until July 1, 2015, by when the fixed price will give way to an emissions trading scheme and the market will set the price. The polluters will pass their increased costs onto consumers while at the same time be encouraged to save money by reducing emissions.

The modelling released yesterday forecast the cost of living will rise by 0.7 per cent on average.

This equates to an average increase in household bills of $9.90 a week, or $514 a year, while the average compensation will be $10.10 a week, or $525 a year.

This weekly impost includes an estimated $3.30 increase to power bills, a $1.50 increase in gas, while food bills would rise by only 80c a week.

Of the compensation package, $8 billion includes permanent income tax cuts. On July 1, 2012, the tax-free threshhold will rise from $6000 to $18,200. This will free 1 million people from paying any tax at all and give everybody a tax cut. The government also badged the cuts as a reform to encourage welfare recipients into work, because they will be able to keep more of what they earn.

The changes will provide tax relief to all incomes up to $80,000. These cuts range from $600 a year for somebody earning $20,000, to $303 a year for those with incomes between $30,000 and $65,000, to $128 a year for somebody on $75,000.

Pensions, family tax benefits and other allowances will rise permanently by 1.7 per cent. This equates to $338 a year for single pensioners whose cost of living is expected to rise by $204 a year.

Self-funded retirees will receive up to $510 a year extra.

In May and June next year, the first three quarters of this increase will be paid as a lump sum, with the other quarter to be paid in the financial year. From July 1, 2013 onwards, the pension increase will be incorporated into fortnightly payments.

Family Tax Benefit A recipients will receive an extra $110 per child and there will be an extra $69 for those who receive Family Tax Benefit B. Single parents will get an extra $234 a year on top of increase family payments.

The amount of compensation paid to couples will depend on their eligibility for the tax cuts and family tax payments.

For example, single income families earning $65,000 with one child under five will receive $409 in tax cuts and family payments but the estimated annual impact on their household budget of the carbon price will be $452.

That same couple earning $150,000 will get just $77 in compensation against an annual average costs increase of $736.

Read more: http://www.smh.com.au/environment/cl...#ixzz1RjYApm3S

[Jim Goose]

So i dont know where you got your increase in tax rate for people earning under $80000????

Key points of the carbon price package
July 10, 2011

- Carbon price to start on July 1, 2012, starting at $23 a tonne rising at 2.5 per cent a year.

- It will be paid by about 500 biggest polluters.

-------------------------------------

PRIME MINISTER'S CARBON TAX ADDRESS TO THE NATION

-------------------------------------

- It will be replaced by an emissions trading scheme from July 1, 2015.

- Price ceiling and floor to apply when trading starts.

- There will be two rounds of tax cuts and increases in allowances, payments and benefits.

- The tax free threshold will almost triple to $18,200 from July 1, 2012, and then increase to $19,400 from July 1, 2015.

- Every taxpayer with income below $80,000 to get tax cut from July 1, 2012.

- Costs for the average household will rise by $9.90 a week.

- Average household assistance, under the "clean energy supplement", will be $10.10 a week.

- $9.2 billion will be allocated over the first three years for industry assistance.

- Most exposed industries such as steel, aluminium, zinc, pulp and paper makers will get free permits representing 94.5 per cent of industry average carbon costs.

- $300 million has set aside help the steel industry move to a clean energy future.

- $1.3 billion has been set aside for a Coal Sector Jobs Package, targeted at mines that are most affected by the carbon price.

- A $10 billion Clean Energy Finance Corporation will be established to invest in new technology.

- $3.2 billion has been allocated to the Australian Renewable Energy Agency.

- Closure of 2000 megawatts of dirtiest power generators by 2020.

- Agriculture is not subject to carbon price, farmers to benefit from carbon farming.

- Small grants will be made for community-based energy efficiency programs.

- Transport fuel excluded, but heavy transport to start paying carbon tax in 2014.

- Climate Change Authority to advise on pollution caps and meeting emissions targets.

Read more: http://www.smh.com.au/environment/cl...#ixzz1RjaG8qk3

[Zero_PSI]

Thats typical. Goverment has all freedom to put their hand into my 40 hours worth of slavery. But when i'm out of work i can't bleed a cent out of them.

[SEZ213]

one point from that last article, heavy transport will be taxed from 2014. That's a sure bet food, postage, etc. will increase, not only to transport, but to buy...

I'm still not quite sure why they bothered, they're taking and giving in the same breath...although a 12k increase in the tax free threshold is interesting...it really doesn't help the average worker, whilst it will pretty much work out that those on benefits get a virtually tax free income...

The other point is, someone earning anything over 50k is actually worse off if the modeling is anything to go by...

[prydey]

Originally Posted by Sezzy

one point from that last article, heavy transport will be taxed from 2014. That's a sure bet food, postage, etc. will increase, not only to transport, but to buy...

i think this is one area where the general public are a lot smarter than any govt gives them credit for.

whilst there may be no direct increase in things like food and fuel etc, there will always be an indirect impact from businesses and such that are affected and need to pass these costs on.

govt's really need to stop treating people like fools.

[cheap]

Originally Posted by Jim Goose

So i dont know where you got your increase in tax rate for people earning under $80000????

Jim,

Reread my original point, I didn't state under $80,000, I said assuming you earn over $80,000. The new tax rates aren't mentioned in the media releases, except in the finer details of this tax.

Typical of this "tricky" government and the spin from the main stream media, they only concentrate on selective points. If I could suggest you stop using the SMH - Soviet Morning Herald for your information, they're master spin merchants.

This tax is a magic tax, the amount of tax being taken from the "biggest 500 polluters" doesn't match the amount of welfare being distributed. It only works (and that is a word I have difficulty using) because of hidden increases like the marginal rates. No doubt there are other gems in this magic tax awaiting discovery.

[The Monty]

Its very contradictory :
1. tax free threshold tripled to $18,200 a year from July 1, 2012
2. but middle tax rate ($37,000-$80,000) will rise from 30-32.5 per cent… to stop over $150,000 earners getting a benefit
3. no Australians will pay more tax
4. 9 out of 10 households will receive assistance… and 2 out 3 of those households will receive enough to cover the extra costs.
5. 500 companies and 3 million households will be worse off.

Just some points, as Im struggling to understand it all, but point 4, says 9 out of 10 receive compensation. But only 2 out of those 3 will receive enough to cover the added burden of the carbon rax. So only 6 of those 9 will actually be better off. So in a nutshell, 6 out of 10 households will be better off, not 9 like we are being told.
4 out of 10 will be paying more, as taxes ARE increasing for the middle income bracket, but it says we wont pay any more tax, as it will be offset by the tax free threshold.

We were also told that the high income earners will receive no compensation. Yet the facts say that they will receive :
TAX CUTS – PER YEAR
Family (2 kids)
Less than 15K - $0
35K - $543
60K - $528
70K - $1029
90K - $746
120K - $306
150K - $306
180 – $306
200 - $306

Also we are told in one part that:
2 million households will make a loss because they won’t be fully compensated.
But then we are told:
500 companies and 3 million households will be worse off.


Is it just me, or does none of this actually add up?

[Geez Louise]

Ah taxes...the bain of my life at one point in time and to an extent still are!

There are two things in life that are inevitable, death and taxes....Happens to everyone.

There was a tax increase as of 1st July 2011 for the flood levy and yet you hear nothing about that. People who have already received their pay for this finanical year and are earning over 50k will know what I am talking about. So the flood levy is bought in for 2011/2012 financial year and basically when it ends, will be replaced by the Carbon tax. We will still be paying taxes...

It is all taken in one hand and given out in the other...and not always a fair balance of the scales either..Is anyone really surprised??

[The Monty]

Originally Posted by Geez Louise

Ah taxes...the bain of my life at one point in time and to an extent still are!

There are two things in life that are inevitable, death and taxes....Happens to everyone.

There was a tax increase as of 1st July 2011 for the flood levy and yet you hear nothing about that. People who have already received their pay for this finanical year and are earning over 50k will know what I am talking about. So the flood levy is bought in for 2011/2012 financial year and basically when it ends, will be replaced by the Carbon tax. We will still be paying taxes...

It is all taken in one hand and given out in the other...and not always a fair balance of the scales either..Is anyone really surprised??

Not surprised, and think its fair that we pay tax. But I just wish we werent given the run around, with magical spin. I just want these things answered, without the spin and the bullcrap, and lies, which we have been told figures, that are nowhere near what any reasonable person can believe.

How much will we be paying extra per year? I dont beleive for a second that its only $9.90 a week.
How much will this cool the earth by? IIRC, last night we were told if everything works perfectly, 4 one thousandth of a degree.
Will the increase in CPI (0.7%) and the extra tax we wont be paying (?) impact on our interest rates for houses? More money in, more money out, CPI going up, interest rates go up. So the carbon tax could possibly push interest rates higher. Again. So will this be compensated as well?
And lastly, whats the use of having a tax, where everyone is mostly compensated, that is not certain to do anything, and that will cost jobs (thats a fact)? It doesnt make sense to me.

Its not that I dont welcome the new tax, but I really would like to understand what Im paying for.

[fat4D]

the things im curious about. When people are on the dole do they pay tax on it? Reason i ask is i used to work at a maccas across from govo flats and a majority (i understand some people are legitimately on the dole) got their money and snorted it injected it smoked it and drank the money away is this putting more money in the hands of these people? If so Thats wrong

[sudszy]

According to my simple arithmetic calculation of the tax rates, the bottom line is, the tax payabe on the the old rates or the new rates are equal at $80000, differences of course for your own situation, family allowances, medicare etc. (please correct me if I have that wrong)

People earning less than 80000 will not be paying as much tax as previously

But after that the tax rate remains the same(0.37), people over $80000 will be paying exactly the same tax as before, and 0.45 for $180000+.


Of course some are talking about tax payable and tax rates, the too are related but not the same.

The tax rate is higher now for any income you are going to earn above $18200 up to $80000, so any extra time or overtime will be worth 4% or 2.5% less to you depending which bracket you are in.

Estimates/modelling how much better off each person will depend on what you end up spending your income on. So far its unclear whether present modelling assumes many will use the same amount of carbon as present or not.

[Charliewool]

Does anyone have this list of the terrible 500???

[fmc351]

Originally Posted by fat4D

the things im curious about. When people are on the dole do they pay tax on it? Reason i ask is i used to work at a maccas across from govo flats and a majority (i understand some people are legitimately on the dole) got their money and snorted it injected it smoked it and drank the money away is this putting more money in the hands of these people? If so Thats wrong

No, currently they wouldnt pay any tax on the Dole once the low income earners rebate kicked in anyway, LIR is for incomes less than around $18k. The 'new' tax free threshold of $18k is around the same amount (near enough) as the low income earner rebate. So all the new threshold will do is put more of your income in your pocket for those earning say just above the low income earner rebate amount (say 18k) and up, until a certain point where the tax rise from 30-32% (I havent checked those new tax figures, just trusting the accuracy of another post) will offset the gain in the threshold.

Dole is based on cost of living numbers so it makes no sense to pay them an amount that would include an allowance for tax, and then take it back. The money comes from the same place. Easier and cheaper for Gov to simply pay the amount the cost of living indicates it should be.

[mr smith]

I'm almost lost for words over this tax. Do lower paid people generate less co2? Labour has lost the plot when it comes to the working people of Australia. Just another incentive to work less and put out your hand.

[dags41v]

Where is the incentive to work? My wife and I work long hours and combined earn over $150K which apparently puts us in the high income bracket. Last time I popped my monocle out and checked all the bills for 2 kids at school, electricity, gas, food etc etc I was surprised to find that I couldnt afford a new yacht, surley if I am earning such a high income I should be able to afford some luxuries. We also dont get any of the family tax benefits, education rebates etc etc yet we apparently earn so much that we pay EVERY levy that comes in (flood, carbon tax etc) and get taxed more so that a lot of people (not everyone) who dont want to work gets some extra cash.
Note to self ....... take a breath.
I really cant see how this is going to move our country ahead ........ rant over (for now).

[GT0132]

Originally Posted by dags41v

Where is the incentive to work? My wife and I work long hours and combined earn over $150K which apparently puts us in the high income bracket. Last time I popped my monocle out and checked all the bills for 2 kids at school, electricity, gas, food etc etc I was surprised to find that I couldnt afford a new yacht, surley if I am earning such a high income I should be able to afford some luxuries. We also dont get any of the family tax benefits, education rebates etc etc yet we apparently earn so much that we pay EVERY levy that comes in (flood, carbon tax etc) and get taxed more so that a lot of people (not everyone) who dont want to work gets some extra cash.
Note to self ....... take a breath.
I really cant see how this is going to move our country ahead ........ rant over (for now).

Yeah I can understand how you feel.

What about divorced fathers living on their own who are deemed to be in the single income high earners class in Gillards categorisation because they earn over $180k despite having to start over as well as paying a fair percentage of their income to an ex wife who doesn't work and who looks set to receive big increases to her family allowance. Then there are the flood levies, and the "soon to be passed in the senate" abolition of the 30% private health insurance rebate. When will the government get it that just because you earn a high salary doesn't mean you're wealthy.

[Scott]

Can you believe we didn't even vote for the idiots? The level of frustration in people must be nearing boiling point, it sure is in my house and among my friends, colleagues and clients.

We could be waiting 2.5 years before we can get rid of the fools.

[anto]

Originally Posted by mr smith

I'm almost lost for words over this tax. Do lower paid people generate less co2? Labour has lost the plot when it comes to the working people of Australia. Just another incentive to work less and put out your hand.

you and me both ! speechless.

damn them and their tax!!! why cant they just legislate towards a "greener " future. Bunch of bloodsuckers

[blueoval]

Originally Posted by Scott

Can you believe we didn't even vote for the idiots? The level of frustration in people must be nearing boiling point, it sure is in my house and among my friends, colleagues and clients.

We could be waiting 2.5 years before we can get rid of the fools.

By that time, it will be too late, the new tax will be well under way and not even a new government will be able to change it.

All this does is give some Dole bludgers more incentive not to work.

[SEZ213]

There is one thing I'd be very interested to know...how many people in those 3 million households that will be affected? they give the number of households but not the physical number of people...and is there any guarantee for the average Australian that these 500 companies aren't going to charge us extra for goods straight up...? A business can't carry those costs and not on-cost it to your goods, they'll end up broke...

[Polyal]

Originally Posted by anto

you and me both ! speechless.

damn them and their tax!!! why cant they just legislate towards a "greener " future. Bunch of bloodsuckers

This is a complete joke.

Look at euro regs, has much as I despise it manufacturers have worked towards lowering emissions without taxes..

All industry needs is realistic targets to meet by certain dates.

The greenies seem to think you can undo years of industrialization overnight

[Smoke Pursuit]

Haha well done..

You all know Bob Browns now running the country don't you? An expensive way for Julia to get power was taking his votes, hes got her wrapped around his little finger so tightly that woman does not know what to do next.

The next 2.5 years are going to be very tough...

[anto]

one thing for sure is that their estimates are all based on a best case scenario. Reality will be completely different for the average family.
just look at the US and their predicted job growth from all the stimulus spending, it never materialized.

[gtfpv]

look i'm so glad this thread exists . it explains a lot of unanswered quuestions i had about it . and also reminds me of a few added taxes i'd already forgotten about .
one thing i dont think ahs been mentioned yet that puts another downer on it , was that a trade off to the green as per the low $23 per tonne , is a new formed senate authority to them - which will give them the right to involve other areas of pollution , (LIKE TRAVEL TAX ON PRIVATE VEHICLES) ooooh yeah they will target that next . and we will all pay per km - a tax for distance . those of us /most of us who work in sydney , will get hit hard with already existing TOLLS,FUEL PRICES, CAR PRICES, LUXURY TAXES, SOON TO BE ECONOMY TAXES, REGISTRATIONS, INSURANCES, SOON TO BE CONGESTION TAXES, INCREASED LEASING TAXES, INCREASED LPG TAXES, will have to endure an added distance traveled TAX , and dont think petrol carbon taxes wont be introduced in the future either . what will this do to housing prices and car costs in the very near future , not to mention employment _ will it be worth teravelling into the city ? or will we be forced to work locally , or leave home . ??
this is very discretely kept under wraps , but it is there and exists , check the fine print .. or the sunday telegraph . it is there as a one liner under TRADE OFFS .

[gtfpv]

The one positive though which just cannot be over looked is . tony abbott said , while we reduce our carbon emmisions by 5% before 2020, china will increase its carbon production by 500% .
think of those places in china now that are black cities -not a good thing , how bad will it be 5 x worse . if you look forward everybody will want to clean up a dirty polluted world hopefully a lot less dirty over australian skies .
this cant be ignored no matter which way you stand

[StrokedXT]

Originally Posted by Scott

Can you believe we didn't even vote for the idiots? The level of frustration in people must be nearing boiling point, it sure is in my house and among my friends, colleagues and clients.

We could be waiting 2.5 years before we can get rid of the fools.

Umm yes we did vote for them, wether people like it or not they made that choice at the ballot box now we are stuck with it.

[Polyal]

Originally Posted by gtfpv

The one positive though which just cannot be over looked is . tony abbott said , while we reduce our carbon emmisions by 5% before 2020, china will increase its carbon production by 500% .
think of those places in china now that are black cities -not a good thing , how bad will it be 5 x worse . if you look forward everybody will want to clean up a dirty polluted world hopefully a lot less dirty over australian skies .
this cant be ignored no matter which way you stand

Yes but who are we to say "china sorry, everyone is going green, you missed your chance for industrialisation"...

I get your point that we are nothing in the grand scheme of things, so its puzzling why we are early on the uptake with this....she just wants to get in the record books for actually doing something; rightly or wrongly. That or if she didnt do this then the truth would come out...

[ltd]

What I hate is the attitudes of the government and their betrayal of the public. This issue is here to stay and frankly, when there's a day of action planned against this madness we need to all stand up and attend. So far, these eco-fascists such as Getup have been better organised and the numbers are disproportionately swayed towards having a carbon dioxide tax as opposed to not having one. We need to get ready to march in the streets and remove these a holes from power ASAFP.
This country will not survive this kind of economic vandalism and frankly, once industry is gone it will never come back.

That said, if I hear Bob Brown talk about his man-date one more time I'm gonna explode.

[BA GT-HO]

This is why I think elections should be called every 2 years.

What really irks me is when Juliar stands up and says things like "the majority if Australians are in favor of a carbon tax."

Errrrr have you checked any online polls? Last one I saw it was 82% voted no to another tax..

The problem is we are so lazy. If this was south America there would be huge protests, instead we just seem to go, oh well..