Abbott in Government

[alieninperth]

Re: Oz Federal Election 2013 - Discussion and Comments

They are interesting Amaroo thanks. The population of 60+ must be pretty significant to move the total distribution.

 

[alieninperth]

I think you are right there knasty, but I honestly haven't got an issue with people minimisung their taxes through legal channels. Its the illegel channels and the false claims, such as those used in the salary sacrafising schemes, that really annoy me.

Just so I make it clear, if you are allowed and entitled to make a claim for a reduction then do it, if you're not then you shouldn't.

 

[amaroo]

Re: Oz Federal Election 2013 - Discussion and Comments

They are interesting Amaroo thanks. The population of 60+ must be pretty significant to move the total distribution.

They will get more interesting once the numbers start flowing from the recent raising of the tax free threshold from $6K to $18.2K :shock:

 

[knasty]

Re: Oz Federal Election 2013 - Discussion and Comments

I agree - my day job is a tax adviser. Best systems have low rate broad based taxes on income and consumption with minimal deductions/exemptions, with social policy achieved through high tax free threshold ans transfer payments. This minimises the incentive and ability to reduce or evade.

 

[alieninperth]

Re: Oz Federal Election 2013 - Discussion and Comments

and so it's official Clive Palmer wins Sunshine Coast seat of Fairfax - ABC News (Australian Broadcasting Corporation)
the next parliment should be interesting.

 

[moa999]

Re: Oz Federal Election 2013 - Discussion and Comments

And they have lost 1375 ballots in WA.

Really good given the gap under the closest exclusion is under 20 votes.

 

[drsmithy]

Re: Oz Federal Election 2013 - Discussion and Comments

I suspect the real % of people who earn above $88k is vastly higher once you consider those reducing their taxable income legally through income splitting or trusts, and illegally through cash payments and deliberate underreporting (to name a few).

And especially not to forget the massive and distorting tax rort of negative gearing.

Around the world it's the poor old PAYG employee who suffers.

Exactly. For the last few decades the tax burden has been moved steadily off the well-off and wealthy, and onto the wage earners.

 

[drsmithy]

Re: Oz Federal Election 2013 - Discussion and Comments

I agree - my day job is a tax adviser. Best systems have low rate broad based taxes on income and consumption with minimal deductions/exemptions, with social policy achieved through high tax free threshold ans transfer payments. This minimises the incentive and ability to reduce or evade.

Plus broad-based wealth and (especially) land value taxes.

 

[drron]

Re: Oz Federal Election 2013 - Discussion and Comments

Drsmithy negative gearing is not a tax rort.It is legal.
I however do agree with you that it should be abolished.It is sending erroneous investment signals causing money to flow into investment housing.This is part of the reason why young people are finding it near impossible to get onto the housing ladder.
But an interesting question for you- would you be adverse for some sort of negative gearing if it was for investment in some sort of Infrastructure bonds issued by Government.Some days I think it is a reasonable idea and the other days I don't.

 

[drsmithy]

Re: Oz Federal Election 2013 - Discussion and Comments

Drsmithy negative gearing is not a tax rort.It is legal.

It's legality makes it no less a rort.

I however do agree with you that it should be abolished.It is sending erroneous investment signals causing money to flow into investment housing.This is part of the reason why young people are finding it near impossible to get onto the housing ladder.
But an interesting question for you- would you be adverse for some sort of negative gearing if it was for investment in some sort of Infrastructure bonds issued by Government.Some days I think it is a reasonable idea and the other days I don't.

First the terminology needs to be properly defined. When I say "negative gearing" I - like most people I know - mean the ability to deduct losses incurred from one asset or investment against the income stream generated by another. The classic case being the deduction of "investment" property losses against a regular salary income.

 

[alieninperth]

Re: Oz Federal Election 2013 - Discussion and Comments

I think a good rule of thumb for this is: Does the thing produce something, or allow something to be produced? Machinery, a new port, a rail line, factories. If it does then -ve gear away. If it doesnt produce, or allow something to be produced; like the majority of residential property in the country, then no -ve gearing. There may be targeted exemptions to this such as Northern Australia, where it could be used to attract employees and work.

Generally this country needs an overhaul of the tax system. The Henry review was a wasted opportunity and the previous govts should be kicking themselves over it.

 

[Pushka]

Re: Oz Federal Election 2013 - Discussion and Comments

A rort is a dishonest or fraudulent act. Negative gearing is not a rort. No such thing as a legal rort.

 

[JohnK]

Makes no difference to me. I've already concluded your opinion on this is worthless, because you fail to consider the facts. But then that fact less approach to life has given us Abbott in Government.

We are living in the idiocracy.

I believe that parachuting is stupid. It is an opinion. It is not based on any fact. In fact I do not need to have any facts what so ever to have an opinion that parachuting is stupid.

You must love insulting people. I can see why some of the others in these threads choose not to debate with you anymore.

 

[drron]

Re: Oz Federal Election 2013 - Discussion and Comments

Your version fails the test.You are the one who preaches about the difference between illegal and unlawful.being legal means it cant be a rort.From the Oxford dictionary-
noun
Australian informal
1 [often with modifier] a fraudulent or dishonest act or practice:a tax rort

By infrastructure bonds I am meaning the investor takes the risk.The government could guarantee a fixed interest so if income falls below forecast they are up for the whole difference.If negative gearing is allowed and no guaranteed income the Government is only on the hook for the tax deduction.
This idea has been floated but I cant immediately remember where.

 

[JohnK]

Re: Oz Federal Election 2013 - Discussion and Comments

And especially not to forget the massive and distorting tax rort of negative gearing.

So you want to abolish negative gearing?

That is fine. But at the same time rental income would not be taxable either? Correct?

Sounds like a fair trade to me....

 

[11sjw]

Re: Oz Federal Election 2013 - Discussion and Comments

I think a good rule of thumb for this is: Does the thing produce something, or allow something to be produced? Machinery, a new port, a rail line, factories. If it does then -ve gear away. If it doesnt produce, or allow something to be produced; like the majority of residential property in the country, then no -ve gearing. There may be targeted exemptions to this such as Northern Australia, where it could be used to attract employees and work.

Generally this country needs an overhaul of the tax system. The Henry review was a wasted opportunity and the previous govts should be kicking themselves over it.

Along those lines I think negative gearing on a property you build should be allowed as opposed to allowing it on the purchase of an existing building (commercial or residential).

 

[Alanslegal]

Re: Oz Federal Election 2013 - Discussion and Comments

I bought a new car yesterday and big thanks to Tony Abbott who made the cost of my purchase much higher than what it would have been under Kevin Rudd. Thanks Tony for keeping the FBT and keeping demand high. Now, if only demand dropped 10-20% as predicted by salary sacrificing companies if FBT was axed, then the surplus of cars would have made it easier for me to get a lower price. Many thanks Tony, not!

 

[Pushka]

Re: Oz Federal Election 2013 - Discussion and Comments

The prices of cars in Australia will never fall and it has little to do with FBT.

 

[Pukka]

Re: Oz Federal Election 2013 - Discussion and Comments

I bought a new car yesterday and big thanks to Tony Abbott who made the cost of my purchase much higher than what it would have been under Kevin Rudd. Thanks Tony for keeping the FBT and keeping demand high. Now, if only demand dropped 10-20% as predicted by salary sacrificing companies if FBT was axed, then the surplus of cars would have made it easier for me to get a lower price. Many thanks Tony, not!

Yeah well the last time I bought a car I paid $20k luxury car tax thanks to Rudd so TA can't be any worse!!

 

[Pukka]

Re: Oz Federal Election 2013 - Discussion and Comments

The prices of cars in Australia will never fall and it has little to do with FBT.

I was in Hawaii recently a Porsche 911 is just over $100k in Australia $234k but apparently the waiting list here is now very short wonder why that is ??!!