The totally off-topic thread

[Pushka]

Capital gains has always been assessed as income. High income earners pay - but think it’s now gone - a budget repair levy. Health rebate cuts out at a certain income level. And Medicare payment is determined on gross income.

 

[QF WP]

Yikes. It’s 6am in Bali and just got up to the bathroom and we had an earthquake. Bathroom shaking from side to side. I’m in darkness as I don’t like to turn lights on to bother MrP. Just going online to see what’s up!

Eeek...4.9 magnitude earthquake near Karangasem, Bali, Indonesia and Malang, East Java, Indonesia : November 08, 2017 21:54

 

[drron]

And yet another reason for a flight diversion-
Qatar Airways Flight Diverted After Onboard Incident When Woman Discovered Her Husband Cheated On Her

 

[QF WP]

Had a shock at the accountants yesterday.

The stupidity in our tax law never ceases to amaze me. My capital gain is treated as income tax. It has pushed my income over $250,000 for the 2016-2017 tax year.

I have to pay ~$1800 budget repair levy. What the hell is this levy? And I lost my $634/year health rebate. And I have to pay ~$3100 Medicare levy on my capital gain.

This isn't paying fair share of tax. Some may see that as fair but it's ridiculous beyond comprehension. Just as well I budgetted more for capital gain tax and I am going to be ~$8000 better off than my rough calculation.

My new motto is going to be lie, cheat and steal where possible. I saw a section on foreign income. I laughed. Like I'm going to declare foreign income so I can pay 49c in the $ tax for my hard work. Get stuffed.

So you made a lot of money and you're are complaining about paying your fair share in tax? Capital gains tax is payable in the financial year in which the gain is made - so you knew about it as you had budgeted for it...I'm not sure what to make of your comments then as it appears you are being reactive rather than proactive. There are plenty of options available to reduce taxable income (ask any accountant).

The Budget Repair levy was proposed in the 2014/15 Budget and then legislated for the 3 financial years 14/15, 15/16 and 16/17: Temporary budget repair levy

Your new motto will only get you into trouble - Australia & Thailand have a tax treaty in place. It also surprises me that you appear not to have considered plenty of other options where income will not be taxed at the highest MTR (unless you are going to earn taxable income of greater than $180K indefinitely). If you're not happy with Australian tax and laws, there are other options....

 

[QF WP]

Yep. They alternate for me and that depends on how the picture is shown.

+1 for me. Love toggling between the two, although probably got great on the eyes. Very Escher-esque to me.

 

[Denali]

So you made a lot of money and you're are complaining about paying your fair share in tax? Capital gains tax is payable in the financial year in which the gain is made - so you knew about it as you had budgeted for it...I'm not sure what to make of your comments then as it appears you are being reactive rather than proactive. There are plenty of options available to reduce taxable income (ask any accountant).

The Budget Repair levy was proposed in the 2014/15 Budget and then legislated for the 3 financial years 14/15, 15/16 and 16/17: Temporary budget repair levy

Your new motto will only get you into trouble - Australia & Thailand have a tax treaty in place. It also surprises me that you appear not to have considered plenty of other options where income will not be taxed at the highest MTR (unless you are going to earn taxable income of greater than $180K indefinitely). If you're not happy with Australian tax and laws, there are other options....

I have a brother in law that will cough and moan about having to bank a million dollar cheque if he won it. Some people are just like that.

Hubbys capital gains tax bill was over $150K this year, when he sells the next lot it will be a million.

What this means is he still made healthy profit for retirement. Not flying F and buying a boat and hookers retirement but build a new home in the burbs to house all his hobbies comfortable.

 

[Pushka]

I have a brother in law that will cough and moan about having to bank a million dollar cheque if he won it. Some people are just like that.

Hubbys capital gains tax bill was over $150K this year, when he sells the next lot it will be a million.

What this means is he still made healthy profit for retirement. Not flying F and buying a boat and hookers retirement but build a new home in the burbs to house all his hobbies comfortable.

A friends mother - in her 90’s - just inherited her brothers house, cash and shares. Around $750k. All she’s worried about is that she will lose her pension. And while it won’t solve her pension issues to do so, she refuses to give any of it to her daughter who could probably do with it to improve her basic lifestyle.

Once I get to a certain age and travel off the radar, the kids will get some money. I’d rather be alive to see them enjoy it.

 

[QF WP]

@Pushka depending on her new level of assets, the gifting rules may make a small difference - but if it puts her well over, then she'd better start thinking about her new assets generating sufficient income for her. Even if she loses the Age Pension, she can apply for the Commonwealth Seniors Health Card which will give her what she probably fears losing...cheap medication.

 

[straitman]

Should have done that years ago when I had the chance. I'm an RPG ILE specialist. Very few jobs around. If you find a job then keep it. A lot have retrained to Java, web programming over the years. I don't enjoy that type of programming environment.

JohnK,

This is another reason that I don't think life as a pilot would have been for you.

Constant training and retraining. Requirements to do certain things every 35 days, 90 days and 180 days, test/check flights at 180 and 360 day intervals and a regulatory environment that is painful at best and forever changing.

 

[QF WP]

@straitman, sounds just like financial planning (@dec540 will agree), just changing a few words (like "Test/check flights" for "audit")

 

[docjames]

@straitman, sounds just like financial planning (@dec540 will agree), just changing a few words (like "Test/check flights" for "audit")

Sounds like Medicine (constant training, CME, audit, M+M, etc.....)

 

[RooFlyer]

There are plenty of options available to reduce taxable income (ask any accountant).

But JohnK makes a virtue of not paying for financial advice.

Ye reap what ye sow.

 

[Denali]

My husband has this thing about solar lights for the yard, his latest is one of those coloured projection type light, different scenes and colours. Its Christmas all year round

Last night, someone entered our property and stole his laser light thingy.

I guess tonight we're going to go for a walk, up and down the street.

 

[Pushka]

Sounds like Medicine (constant training, CME, audit, M+M, etc.....)

Sounds like anything work related really.

 

[JohnK]

So you made a lot of money and you're are complaining about paying your fair share in tax? Capital gains tax is payable in the financial year in which the gain is made - so you knew about it as you had budgeted for it...

I had planned and budgetted for capital gains tax. Not that I'm now a higher income earner. It actually came as a shock.

The treaty between Australia and Thailand sounds more like a business treaty. I don't think Thailand is going to report to Australia that JohnK just bought a condo in Chiang Mai and is renting out the condo. I will be paying tax in Thailand. I'm not going to report it on my Australian tax return and I'm definitely not going to report any capital gains on sale of said condo.

 

[love_the_life]

Had a shock at the accountants yesterday.

The stupidity in our tax law never ceases to amaze me. My capital gain is treated as income tax. It has pushed my income over $250,000 for the 2016-2017 tax year.

I have to pay ~$1800 budget repair levy. What the hell is this levy? And I lost my $634/year health rebate. And I have to pay ~$3100 Medicare levy on my capital gain.

This isn't paying fair share of tax. Some may see that as fair but it's ridiculous beyond comprehension. Just as well I budgetted more for capital gain tax and I am going to be ~$8000 better off than my rough calculation.

My new motto is going to be lie, cheat and steal where possible. I saw a section on foreign income. I laughed. Like I'm going to declare foreign income so I can pay 49c in the $ tax for my hard work. Get stuffed.

Why is the law stupid? It is only fair and right that people who earn more pay more tax and do not get discounts that lower income earners receive. Capital gains on property has always been assessed as income for the year it is earned (i.e. the year the property is finalised). People who want to minimise this usually try to ensure that they make a loss somewhere else, for example in a negative geared place. Being aware of what effect any capital gains will have on total taxable income is pretty basic I would have thought if a person has investments. It is unfortunate for you this year JohnK but it's not the ATO's fault.

**Sorry, just saw that QFWP had replied and being in the financial industry says it much better than me.

 

[love_the_life]

Eeek...4.9 magnitude earthquake near Karangasem, Bali, Indonesia and Malang, East Java, Indonesia : November 08, 2017 21:54

Ah, just caught up with the news now
You've got good sea legs but how are your earthquake legs?

 

[drron]

A funny thing happened on the way to the hotel.Came back at lunch time as it was the time to book my next Life miles award.A Senator has her office next to the hotel.She was out on the lawn being interviewed in front of the TV cameras.I walked up the path right behind her.Three young ladies were at the top of the hill waiting until she had finished.As I passed them I said-"must be a dual citizen"The laughs probably meant they had to reshoot that answer.

 

[JohnK]

JohnK,

This is another reason that I don't think life as a pilot would have been for you.

Constant training and retraining. Requirements to do certain things every 35 days, 90 days and 180 days, test/check flights at 180 and 360 day intervals and a regulatory environment that is painful at best and forever changing.

You are probably right. I don't think I had the marks either but had I known/been pushed earlier who knows.

Life is what it is. It does not hurt to think what might have been.

How did I miss that 2 foot putt on the 17th last week to square the match. He hit the last green and I went out of bounds to lose.

What might have beens are an important part of life. Well to me anyway and they are definitely not throw away lines.

 

[QF WP]

I had planned and budgetted for capital gains tax. Not that I'm now a higher income earner. It actually came as a shock.

No it will be in that year of income only - unless you are buying and selling CGT-pregnant assets all the time...

The treaty between Australia and Thailand sounds more like a business treaty. I don't think Thailand is going to report to Australia that JohnK just bought a condo in Chiang Mai and is renting out the condo. I will be paying tax in Thailand. I'm not going to report it on my Australian tax return and I'm definitely not going to report any capital gains on sale of said condo.

Well the heading on Page 1 says it all to me (YMMV):
Agreement between Australia and the Kingdom of Thailand for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income

You should read Articles 6, 24 and 26 carefully.

It's now a matter of public record that you are going to seek to evade tax..I'd be reconsidering that path or deleting those comments (as I will this paragraph if you delete yours) lest it come back to bite you in the future...the ATO have bots (human and electronic) scouring the internet, after all...