Private Health loss of Rebate for some

[drron]

And create anarchy in the process as nobody bothers paying tax anymore. Around 85% of ATO staff work in compliance. I'm struggling to think of too many roles that could be made redundant.

Umm.If compliance was much easier so even mere mortals could understand the act why would they need so many in compliance.Surely the computer spits out the names of those who haven't lodged a return.

 

[JohnK]

You always have the choice to set your rates as you see fit. (might help with the work life balance ) I simply have trouble with the idea that paying over money that was never yours in the first place is somehow taking something from you.

Why do you continue to make the assumption that the person you are charging GST can claim it as an input tax credit and therefore is happy to pay it?

 

[DrAndyC]

I think a lot of people will drop extras. I will probably drop my extras cover and keep hospital cover to avoid extra medicare levy. My current extras cover amounts to about $1150pa after 0% rebate and the new increases (I have top cover with old industry fund). I am planning on making my own insurance account of sorts instead with the 1150pa that would now go to extras. Assuming most funds only pay say 60% of money back for extras, this 1150 is really equivalent to 1150/0.6 = $1916pa in cash per year that I can spend on "extras" type services to break even. However I will also benefit from investing the money initially instead, and if I do spend it all there is a 20percent tax rebate that may kick in anyway as I am more likely to hit the level sooner as I am not rebated so it is all out of pocket expenses.

 

[MEL_Traveller]

GST may well be additional to their fee/rate but don't make the assumption that a lot of self employed people are in a position to set their fee/rate.

e.g If one was earning $70 + GST /hour before the GFC now they may be earning $70 inclusive of GST. Sure they may be collecting the GST on someones behalf but their effective tax rate has increased.

no... that person has chosen to take a pay cut and reduce the price of their services! it has not increased their tax one single bit.

of course self employed people are free to set their own rates! thats why we are self employed if anything, if anyone is concerned about having to reduce costs post GFC, then quoting the lower price (without GST) makes you look, well, cheaper!

my clients phone me for an initial chat and if there is something I can help them with I quote my rate and they agree. I immediately follow that with 'plus GST' (of course the deal's already done at that stage!)

 

[wmetz]

Private Health Cover should only been allowed to cover actual medical matters, and not things like free shoes, fancy brand name glasses and cosmetic procedures etc. If the customer wants to pay extra to receive these items under their insurance, that fine, but these extra parts receives no rebate allowance. Its exactly like bonuses given to gamblers, but at least that not directly subsidized by all taxpayers.

 

[JohnK]

no... that person has chosen to take a pay cut and reduce the price of their services! it has not increased their tax one single bit.

of course self employed people are free to set their own rates! thats why we are self employed if anything, if anyone is concerned about having to reduce costs post GFC, then quoting the lower price (without GST) makes you look, well, cheaper!

Again you are making the assumption that everyone has multi-national clients who are quite happy to pay the GST.

And no one chooses to reduce their rates. Unfortunately rates are set by supply and demand and in tough times there is always someone who will do it cheaper. If you are uncertain then please speak to a good friend of mine who owns a furniture business and the competition is so fierce the customers set the prices. Not him....

 

[tim374]

Umm.If compliance was much easier so even mere mortals could understand the act why would they need so many in compliance.Surely the computer spits out the names of those who haven't lodged a return.

It's not just non lodgers. There's those that claim things they're not entitled to, some omit income, capital gains etc, people using dodgy companies/structures and offshore places to hide money, inappropriate use of self managed super funds, the list goes on. This all stems from people's attitude, not the complexity of legislation.

 

[cove]

Thanks for all these ideas tim374. I have to file pretty soon. So much work just to get a stack of FF points!

 

[tim374]

Thanks for all these ideas tim374. I have to file pretty soon. So much work just to get a stack of FF points!

All those ideas will get you less FF points.

 

[cove]

I am looking forward to having all of our 2011 returns lodged. So many points to earn for so much work!

 

[medhead]

Deafening silence in this thread now that the coalition has stated they will means test all welfare. Attacking the honest, aspiring, hard working little battlers out there.

Bad when the ALP does something, good when the coalition does the same? Ummm valid criticism, or party political attacks on the ALP?

Or maybe the coalition are just being schizophrenic.

 

[straitman]

Or maybe the coalition are just being schizophrenic.

Or maybe you are just being paranoid :!:

 

[medhead]

Or maybe you are just being paranoid :!:

is it paranoia when they are out to get you?. (as evidenced by my loss of welfare?)

 

[11sjw]

or Joe Hockey will be tap dancing around this baby for a while.

 

[drron]

or Joe Hockey will be tap dancing around this baby for a while.

Maybe you should read Joe Hockeys speech rather than rely on the journalists interpretation of such.Doesn't talk of means testing in Australia but was pointing out the Europeans are in a bind because of their sense of entitlement to welfare.The speech was given in Europe after all.
However I will agree that the journalists at present dont really care which side of politics they misinterpret.

 

[medhead]

Maybe you should read Joe Hockeys speech rather than rely on the journalists interpretation of such.Doesn't talk of means testing in Australia but was pointing out the Europeans are in a bind because of their sense of entitlement to welfare.The speech was given in Europe after all.
However I will agree that the journalists at present dont really care which side of politics they misinterpret.

Given this thread was started on the basis of journalism it's a bit late now to bring this up. Certainly your point would have more impact a hundred odd posts earlier.

But what I read in the paper today had quotation marks around a statement to introduce means testing of all welfare attributed to Hockey. It also claimed that Abbott's office claimed to constantly communicate with Hockey. ie implicit support of means testing by Abbott.

BTW I did hear many of the words Hockey spoke on this matter. My assessment concurs with Dennis Shanahan's published opinion.

Sent from the Throne

 

[Deleted member]

I think the conversation is redundant. We should keep the current government. They are honest trustworthy and everyone likes them.

 

[cove]

I think there is a superannuation super tax about to get released on us. The health insurance attack seems to be only $5200 for the 4 of us. I heard we were going to lose our "olds working rebate" shortly.
I wasn't sure if they will extend the flood levy or just raise the health insurance levy instead or both.
It is so hard to guess ....so many rumours....so few facts so far.
It's ok we can credit card it all!

 

[Deleted member]

I think there is a superannuation super tax about to get released on us. The health insurance attack seems to be only $5200 for the 4 of us. I heard we were going to lose our "olds working rebate" shortly.
I wasn't sure if they will extend the flood levy or just raise the health insurance levy instead or both.
It is so hard to guess ....so many rumours....so few facts so far.
It's ok we can credit card it all!

What superannuation super tax?

 

[cove]

There is about 1.4 trillion dollars in Superannuation and Wayne is looking for about 60 billion. You have to expect salary sacrificing 50k will get shafted somehow for any/many taxpayers and he may tamper with the contribution tax for the "rich".
It is just too much money not to mess with when he is in a mess so to speak.
Currently in our household we joke about the thought of the Treasurers speech......"and now we come to the Mr and Mrscove's taxes..........
Currently we have to wait for his speech but this bit is looking pretty obvious.