How are we (Australia) going to pay for this COVID-19 spending?

[amaroo]

Yes, and
No bonuses and
No reduced interest rate on bank loans and
no employee share schemes and
no million $ salaries for Executives.

There maybe a few Commissioners across the APS on salaries around $850,000 - and no share options - far cry from Comyns at CBA $8 million nor Joyce at Qantas $24 million

That said, 9.5% Less Upto 6 fees & insurances = around 6.5% for ordinary employees is seriously insufficient - part Age Pension anyone.

PS Those average public service pensions qualifies BOTH single and couples to part AGE pension

You forgot one - No Stand Downs... lets, be fair and honest about this! How many millionaires, did you see lining up for centrelink last week? All I saw was a million or so unemployed.

 

[CaptJCool]

You forgot one - No Stand Downs... lets, be fair and honest about this! How many millionaires, did you see lining up for centrelink last week? All I saw was a million or so unemployed.

Since the Assets Test was waived.... it’s liely no one will ever know

 

[CaptJCool]

What makes you confident the future fund won't be tapped for general funding? This is a 1 / 100 year event, good luck thinking a certain section of the community is safe - selfish much!

I expressed no view on preserving or tapping the future fund....

And I’m confident it will be tapped as that was the intention from 2020-21 anyway....

Future Fund | Legislation and governance

Legislation and governance

www.futurefund.gov.au

Govt bonds issued for $500 billion @ 0.25% interest only cost $1.25b per annum to service...... like all borrowings. The difficult part is repaying the hefty principal

PS aside from the tax-free parts of any superannuation (return of capital via drawdowns) Some part of Public service pensions payable to persons over 60 and no longer working are taxable unlike anyone else’s.

 

[amaroo]

Since the Assets Test was waived.... it’s liely no one will ever know

So now we have too much welfare? .... the classic, you cannot please everyone example.

 

[CaptJCool]

So now we have too much welfare? .... the classic, you cannot please everyone example.

Again, no view was expressed as to too much or two little welfare....

Ideally UBI
Making money while you sleep occurs in both capitalism and socialism.

Both exhibit characteristics of a group of people getting a lot of cash for doing no labour -

it’s a case of scale ones a smaller group the other a larger group

 

[amaroo]

I expressed no view on preserving or tapping the future fund....

Really...

They are all closed now....
Future fund to pay for those of us in one of the closed schemes which in the scheme of things is a few 100,000s

 

[amaroo]

..

Again, no view was expressed as to too much or two little welfare....

Ideally UBI
Making money while you sleep occurs in both capitalism and socialism.

Both exhibit characteristics of a group of people getting a lot of cash for doing no labour -

it’s a case of scale ones a smaller group the other a larger group

In these times - what exactly is your objection? From what I've read there is a substantial amount of people getting more than a decent wage lift via the job-keeper or job-seeker initiatives.

 

[CaptJCool]

THERES a MINIMUM UBI for everyone. Great

Are you objecting ?

PS
Given Centrelink will be $632 per week (Newstart plus CV Supplement plus energy supplement plus RENT assistance based on $250 per week) AND you get cheap pharmaceuticals, half price transport, and doctors visits and blah blah which you don’t on wages.

If this is worth more than $22 per week you are financially better off IF A RENTER on Centrelink for 6 months but with no guarantee of a job at the end when the CV booster payment lapses

The $750 is BEFORE tax, and the accountants are believing its 750 less tax (of $96) = net of $654 WITHOUT health care card,, full price public transport but with a guaranteed job at the other end.

Of course casual employees greater than 12 months working 20 hours a week at $25 = $500, who are youth (whose parents earn too much) or spouses with partners (who earn over $80,000) are are ineligible for JobSeeker BUT can earn a more than their ordinary casual earnings of $500 or less.... via JobKeeper

 

[VPS]

I'll leave this here - for the ones that can't be bothered reading, and why would you! Some of us get 9.5% as super contributions, most get nothing as sole traders or businesses owner that don't take a wage!

What do think the PS get? 15.4% .... Yeah, take a glance at your super contribution and compare!

Do public servants receive too much superannuation?

Critics who want to cut the 15.4% contribution forget that most workers' savings are inadequate.

www.smh.com.au

SA Public servants only got the 9.5% but have a look at universities that get 17.5% super and many of those in academia (and I'm not saying all) wouldn't survive in the private sector.

 

[Pushka]

SA Public servants only got the 9.5% but have a look at universities that get 17.5% super and many of those in academia (and I'm not saying all) wouldn't survive in the private sector.

But Universities now are in for a very rough time ahead.

 

[JohnM]

But Universities now are in for a very rough time ahead.

Some may argue that a thorough cleanout was due, anyway...

 

[oz_mark]

there is only one real way for the globe to pay back this debt - inflation.
No onecan afford any other option.

We're probably in for a bout of inflation after this. Lots of people are still earning money, but can't spend it at the moment. When they can, expect inflation.

 

[wannabeinvestmentbanker]

Just catching up on this thread, as a young professional, all this debt pushes me to actively pursue moving to a low tax jurisdiction such as Singapore or Dubai. I don't want to be lumped with increased taxes when I can have a far higher net pay elsewhere. As a big picture issue, if taxes are hiked even further, I foresee a talent run and companies potentially re-domiciling.

 

[amaroo]

Just catching up on this thread, as a young professional, all this debt pushes me to actively pursue moving to a low tax jurisdiction such as Singapore or Dubai. I don't want to be lumped with increased taxes when I can have a far higher net pay elsewhere. As a big picture issue, if taxes are hiked even further, I foresee a talent run and companies potentially re-domiciling.

Make sure you divest property assets prior to hitting the button.

 

[wannabeinvestmentbanker]

Make sure you divest property assets prior to hitting the button.

I don't really believe in owning real property as an asset. I only invest in securities given the excess returns that generates over real property plus it gives me the flexibility to move around.

 

[oz_mark]

Just catching up on this thread, as a young professional, all this debt pushes me to actively pursue moving to a low tax jurisdiction such as Singapore or Dubai. I don't want to be lumped with increased taxes when I can have a far higher net pay elsewhere. As a big picture issue, if taxes are hiked even further, I foresee a talent run and companies potentially re-domiciling.

A lot of those other places will be having similar issues.

 

[p--and--t]

I had another thought on actions that may potentially be taken. Additional taxes on leisure movement in and out of the country to cover the additional costs of border controls to prevent the rise of the pandemic again.

 

[jakeseven7]

Just catching up on this thread, as a young professional, all this debt pushes me to actively pursue moving to a low tax jurisdiction such as Singapore or Dubai. I don't want to be lumped with increased taxes when I can have a far higher net pay elsewhere. As a big picture issue, if taxes are hiked even further, I foresee a talent run and companies potentially re-domiciling.

Good luck getting a visa/permit in Singapore post all this.

As others have posted:

- GST hikes for sure
- Income tax hikes
- Excise tax increase
- Hit the ciggies harder

 

[kpc]

Just catching up on this thread, as a young professional, all this debt pushes me to actively pursue moving to a low tax jurisdiction such as Singapore or Dubai. I don't want to be lumped with increased taxes when I can have a far higher net pay elsewhere. As a big picture issue, if taxes are hiked even further, I foresee a talent run and companies potentially re-domiciling.

...and don't rush back to Australia (or expect the Australian Govt to help you) when you get sick!

 

[wannabeinvestmentbanker]

A lot of those other places will be having similar issues.

Agreed, it's not in the immediate term but the taxes we already have to pay are too burdensome for someone in my position.

...and don't rush back to Australia (or expect the Australian Govt to help you) when you get sick!

I believe that everyone should go where it makes most sense. I believe in giving back to the broader society but there is a limit where I have no control over where those funds go. To counter the above, the impact of me returning for some medical assistance after paying some years of tax versus those who are on social welfare for an extended period pales into comparison financially.

This is all getting a little off topic now.

I believe debt is good if allocated appropriately. I hope that there are sufficient levers for the government to pull that don't overly penalise at the income level and encourage better societal outcomes (e.g. increase gambling taxes, some type of tax for companies not making active efforts to transition to cleaner operations where possible etc).