Oz Federal Election 2013 - Discussion and Comments

[Skyring]

All this cant and nonsense from the government lowers people's expectations for honesty and clarity. We need national leadership and administration, because things like defence and health and highways are too big for individuals to organise. When communications from the national government are aimed at obscuring the truth and reducing information, not to mention taking a swipe at the other guy, what sort of example is being set?

The only way ordinary Australians can influence such poor behaviour is at the ballot box, and it looks like Julia is going to be given a firm and honest opinion on her performance in September.

I'll bet that she will attempt to avoid or minimize the pain by delivering more of the same guff that got her into this position. Helped along by Kevin Rudd, no doubt organising his midnight phone calls even as we speak.

 

[vetrade]

Woohoo. Gotta love $5000 saved from my interest bill.

But at the same time Labor's saddled each person in your family with an extra $8,000 of debt - so you are still far worse off overall.

What's to love about that ?

 

[cove]

If you are 30 and currently need to work to 67 to access retirement then the $600 per year not received in this budget adds up to many hundred thousand dollars if you use the sum of an annuity calculation and apply a 5% interest rate. So you start with 37 times $600 and add on the compounding interest.
Not bad if you are the Government that gave the $900 once.
Wayne will call this a saving!

 

[medhead]

So even the Age admits that 0.1% of taxpayers paid 10% of ALL INCOME TAX

Shame you didn't bother to mention the percentage of income they earn. Roughly 10% (9.2%) of income is earned by those 0.1% of taxpayers, if I properly remember a figure quoted in the last few days. I can't find the source, so any help appreciated. Really paying 10% of tax when earning ~10% of income is about what I'd expect.

 

[Pushka]

If you are 30 and currently need to work to 67 to access retirement then the $600 per year not received in this budget adds up to many hundred thousand dollars if you use the sum of an annuity calculation and apply a 5% interest rate. So you start with 37 times $600 and add on the compounding interest.
Not bad if you are the Government that gave the $900 once.
Wayne will call this a saving!

Is the 67 you refer to the age at which 30 year olds must wait until they can start drawing down super (currently 55) or when they can access it without paying tax (on retirement)

 

[medhead]

No one mentioning the [-]3000[/-] 2000 person reduction in the public service. Why am I not surprised?

But at the same time Labor's saddled each person in your family with an extra $8,000 of debt - so you are still far worse off overall.

What's to love about that ?

Yeah, that's complete bovine excrement. You might expect someone else to pay for sanitation, medicine, education, wine, public order, irrigation, roads, fresh water and public health. But I don't.

 

[medhead]

If you are 30 and currently need to work to 67 to access retirement then the $600 per year not received in this budget adds up to many hundred thousand dollars if you use the sum of an annuity calculation and apply a 5% interest rate. So you start with 37 times $600 and add on the compounding interest.
Not bad if you are the Government that gave the $900 once.
Wayne will call this a saving!

Oh, I can't believe you did that and have got away with it. I recall being shouted down (not by you) for raising the compounding interest benefits for the low income earners with respect to the coalition plan to scrap some super/tax benefit or whatever. If compound interest doesn't exist for low income earners super, surely it can't exist for government benefits either.

 

[Pushka]

No one mentioning the 3000 person reduction in the public service. Why am I not surprised?
.

Haven't heard about it. Who said it? Hopefully Abbott as then it will actually happen.

 

[dfcatch]

No one mentioning the 3000 person reduction in the public service. Why am I not surprised?



Yeah, that's complete bovine excrement. You might expect someone else to pay for sanitation, medicine, education, wine, public order, irrigation, roads, fresh water and public health. But I don't.

Is that all the PS is going to be reduced by?

 

[medhead]

Haven't heard about it. Who said it? Hopefully Abbott as then it will actually happen.

It has already happened. Announced on the news this morning. Not a promise an actual event.

Is that all the PS is going to be reduced by?

No that is what it has already been reduced by in the last 12 months. Allegedly.

 

[Pushka]

Well that's a good thing. I'd like to know how much it had increased in the last five or so years before I get too excited though.

 

[serfty]

...

No that is what it has already been reduced by in the last 12 months. Allegedly.

Full time PS employment increased by ~14,000 from 2007 to 2012.

State of the Service 2011-2012 (169K in June 2012)

State of the Service 2006-2007 (155K in June 2007)

 

[medhead]

Full time PS employment increased by ~14,000 from 2007 to 2012.

State of the Service 2011-2012 (169K in June 2012)

State of the Service 2006-2007 (155K in June 2007)

That's interesting. I'm just repeating what was reported for the last 12 months.

Edit to correct myself. It's 2000 between June 2012 and December 2012.
www.abc.net.au/news/2013-05-08/federal-public-service-shrinking/4676376

 

[cove]

Pushka and Medhead please stop thinking of Wayne's money as your money and you will be ok. Medhead you have a golden opportunity to pay down that mortgage faster. If you do it once you don't have to do it again.

 

[Pushka]

Well there you go. I'm not excited anymore.

Cove. Every time I look at our companies credit card tax payment I shall try to remember it was never my money. And also, Mondays Tuesdays and Wednesdays also belong to him too.

 

[medhead]

Medhead you have a golden opportunity to pay down that mortgage faster. If you do it once you don't have to do it again.

I upped the monthly repayment recently when I realised the gap between actual balance and scheduled balance wasn't increasing. The lack of gap was a surprise since about 40% of the mortgage balance is sitting in an offset account.

I also ran the numbers and the actual balance has decrease 4 times more than it should've based of the full interest amount. So it seems that the bank have adjusted their scheduled balance calculation to account for the offset amount. Anyway, after some minor concern, I'm pleased to report the mortgage war goes well.

 

[medhead]

Well low interest rates dont attract this voter.Self funded retirees take another hint.Almost certain more of them will now qualify for the aged pension.So not all good news.

Something for you:
http://www.smh.com.au/business/markets/penny-drops-savings-are-a-dud-20130508-2j6p1.html

 

[Pushka]

Something for you:
Penny drops: savings are a dud

Thats a good article and something I've been grappling with - security versus potential capital loss when purchasing shares. The GFC forced us to change the structure of our SMSF from somewhat risky but potential higher CG, low dividend shares to less risky, high dividend paying shares. I did buy in to Telstra when they were around $3 and accumulated heavily. As a side benefit to the dividends they have increased in price by 60% so they are travelling nicely for us.

So its probably time for us to move more cash into shares.

 

[drron]

And now Greg Combet has announced that the proposed increase in the tax free threshold has been deferred because of the projected decrease in carbon tax receipts.

 

[Pushka]

And now Greg Combet has announced that the proposed increase in the tax free threshold has been deferred because of the projected decrease in carbon tax receipts.

Maybe they are doing the pre-budget bad news stories all at once?

Next year's budget is going to be a shocker.