Tax Cuts how did you do...

[gozza]

i don't even know what i earn a year hahah...i don't think about it

[MightyXR6Turbo]

Originally Posted by pertuan

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.

Oh, you are in the ADF. That is a different kettle of fish. Providing your spouse (if you have one) and any dependants (if you have any) are covered, then no MLS for you.

However there may be a Medicare Levy implication. Medicare Levy Surcharge is different to Medicare Levy.

Also being a member of the ADF means you fall in a Medicare Levy exemption category, thus you don't pay Medicare Levy as such.

The only one that you would be liable for is Medicare Levy Surcharge if you dont meet the above conditions and your combined family income (yours and your wifes) exceeds $100,000.

[nobbystang]

Originally Posted by pertuan

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.

To make a little simpler, if your wife don't work, you pay 50% medicare, if she works, she pays medicare. Was surprised when accountant told me about this but 50% is better than paying the full amount

[parawolf]

Comments about the poor getting poorer and the rich getting richer as a result of tax cuts is completely useless statement. Of course the rich (example those over $150k for point of discussion) will always get a better tax discount when the rates change because they also pay the most real dollars in tax.

Yes okay someone on $150k a year can also shift investments, incomes, super whateveraround to minimise tax payments and maximise refunds but idea is that they still pay the most real dollars in tax (not by percentage, not any other means but in physical capital dollars they pay the most).

Someone on $25k a year pays less in tax from July 1st will pay in tax about $3000 in a year. That is not a lot. I've had a pay slip where I paid that much in tax for one fortnight (large amount of overtime paid in one hit). How can you cut that more? Move the tax free threshold to $25k?

man watch inflation rise.

As it is the tax cuts are very likely to stimulate inflation. That means more for houses, more on credit cards, more for business loans. Which will likely reduce new homes being built, reduce homes being renovated, more working class ongoing debt, and reduced SME job prospects.

I would have preferred to see the tax cuts put elsewhere, but as it has been commented on, this budget is focussed on election 2007. And apart from stimulating inflation - I haven't heard too many bad things from this budget from all sides.

If the budget is post July 2007, i'd expect next years budget to have dollars spent on roads, schools and hospitals - as I believe tax reform has gone a long way in the past 3 years.

(PS i'm no liberal fan boy, i've never voted liberal, in fact I don't recall ever voting labour either - this is not meant to be a political post, but just a highlight of some of the things i've read in the newspapers and heard on the radio over the past few nights).

[4.9 EF Futura]

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.

Well john, focusing on the budget and not the politics (easier said than done, lol) - you need to look at what has happened to the tax rates in previous budgets.

There has been reform after reform for those at the lower end of the scale. This is the first budget for some time where "the rich" have gotten richer. Remembering that the top marginal rate has been increased from $50k to $150k over the past few years... there has been very little adjustment to the marginal rate itself.

To put it simply - someone earning over $150k hasnt had a tax cut for some time... yet the rest of us have had continual reductions in tax and increases in benefits (particualrly for families). The rich havent been getting richer - theyve been having more and more of their money get distributed to those on lower incomes.

Workhorse - tidy work, one for your country! lol

[MightyXR6Turbo]

Also, I'd like to point out that a low income earner (under $25,000) a year will effectively have a tax free threshold of $10,000. This is up from $7,300ish

This is due to the increase of the low income earners tax offset from $250 to $600. So there is alot of good news for the lower income earners. I wish I had the advantage of a $10,000 tax free threshold effectively!

[MO]

Guys I would love to get this debate red hot ....however I gave my word to Casper....no more from me on this subject.

[AWD Chaser]

Maybe if inflation does rise we should look at getting some sponsors the the Federal Budget =

The 2007 National Gold McBudget, with special guest host - Bill Gates!

[MightyXR6Turbo]

hahah yes I can see it now.

Channel 9's telecast of the 2007 Carlton United Breweries Budget, brought to you by Victoria Bitter, McDonalds Family Restaurants and QANTAS, the spirit of Australia. Now to our host, Eddie McGuire!

[qwigybo]

Originally Posted by 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

thanks for clearing that up i just couldn't see how it worked and without reading anything other than this thread it didn't make much sense to me hah

[Quasi]

I'm absolutely stoked!!

I can't believe how incredibly better off I'm going to be. I've got the day off on Monday, so I'm heading straight down to John McGrath Ford to pick up a new XR8.........with my extra $10 per week....WOOHOO!!