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I expect if and when, and it is most probably when, the new government comes in they will target retirees. Obviously the changes to share imputation credits will be part of this. We have been partly retired for ten years and both fully retired for about four years. The only income tax I recall paying in that time was a result of selling an IP. Otherwise, we pay no tax. Super is tax free, shares receive imputation credits, investment properties have nice depreciation schedules, the system provide a seniors rebate as well as a low income rebate. So no tax payable, completely legally, therefore no Medicare levy payable either. It makes me feel almost guilty when I compare myself to our hardworking kids and I feel sort of obliged to help them with some free childcare.
I am in agree with that, using company franking credits and super funds its very easy for mid class business people to pay minimal tax over their life time. with a bit of planning (Pay up front through company, get it all back through franking credits when retired while drawing tax free super pension). Which of course is all perfectly legal.
The government has already started the ball rolling to some degree with the $1.6m super cap however if labor get in it looks like its going to change.
My parents (fully self funded) could loose 30% of their yearly income if labor get in, naturally they are not exactly thrilled.
I am in agree with that, using company franking credits and super funds its very easy for mid class business people to pay minimal tax over their life time. with a bit of planning (Pay up front through company, get it all back through franking credits when retired while drawing tax free super pension). Which of course is all perfectly legal.
The government has already started the ball rolling to some degree with the $1.6m super cap however if labor get in it looks like its going to change.
My parents (fully self funded) could loose 30% of their yearly income if labor get in, naturally they are not exactly thrilled.
I think Labor's proposed changes are going to be more unpopular than they anticipate. Many working class immigrants have IPS, they particularly have appealed to older people who are not highly literate in English. They can understand and manage a house investment themselves whereas shares and other financial products are daunting.
That 30% is a lot of income to lose. We have paid plenty of tax over the years, we were only public servants on moderate incomes. But I feel we should probably at least pay the Medicare levy.
That 30% is a lot of income to lose. We have paid plenty of tax over the years, we were only public servants on moderate incomes. But I feel we should probably at least pay the Medicare levy.
On the other hand, a lot of people my age (mid-30s) are struggling to afford a home have had stagnant wages for years and pay plenty in tax. They're being told that it's fair to subsidise the lifestyle of the most asset rich generation in Australian history, who not only pay zero tax in retirement but even get a cash refund from the ATO for tax paid by companies. Something's gotta give. You can pretty much blame Howard for how the system has turned out. He pork barrelled the electorate multiple times.
On the other hand, a lot of people my age (mid-30s) are struggling to afford a home have had stagnant wages for years and pay plenty in tax. They're being told that it's fair to subsidise the lifestyle of the most asset rich generation in Australian history, who not only pay zero tax in retirement but even get a cash refund from the ATO for tax paid by companies. Something's gotta give. You can pretty much blame Howard for how the system has turned out. He pork barrelled the electorate multiple times.
Yes, most of us realise how hard it is for our kids your age and that is partly why we do so much more grandchild care than our parents ever did. My grandmothers never minded us, my mother looked after my kids on some nights on weekends and my in laws never. I have been getting up at 5 30 one or two days a week these past six years to get to my kids'places to help with childcare, saving them $25 an hour. All my friends do the same and it is hard to even get together any more with them as everyone is so busy.
We are not without empathy and most of us also hand over large amounts of cash to help our kids with home deposits. Often six figure sums, which you will not hear about among Anglo Aussies at least, as the culture is to avoid discussing such things.
But I also know that not all families are willing and able to help out and as I said I agree that something should and will be done to equalise the tax burden.
I am in agree with that, using company franking credits and super funds its very easy for mid class business people to pay minimal tax over their life time. with a bit of planning (Pay up front through company, get it all back through franking credits when retired while drawing tax free super pension). Which of course is all perfectly legal.
The government has already started the ball rolling to some degree with the $1.6m super cap however if labor get in it looks like its going to change.
My parents (fully self funded) could loose 30% of their yearly income if labor get in, naturally they are not exactly thrilled.
Well I doubt your parents have probably voted ALP in their lives? (QLD Nationalists, I believe?)Not forgetting of course, that it was ALP that introduced these measures in the first place and Howard gave even more away.
Most all pensioners will not be impacted anyway. The Lib's want to run with scare stories to make up for a shocking poor performance in government and being devoid, of anything, that could be termed meaningful policy.
Better investors claiming cash refunds from franking credits that they cannot offset against income tax are hardly a matter to be concerned about.
On the other hand, a lot of people my age (mid-30s) are struggling to afford a home have had stagnant wages for years and pay plenty in tax. They're being told that it's fair to subsidise the lifestyle of the most asset rich generation in Australian history, who not only pay zero tax in retirement but even get a cash refund from the ATO for tax paid by companies. Something's gotta give. You can pretty much blame Howard for how the system has turned out. He pork barrelled the electorate multiple times.
Gosh always thought you a gent of middle/late middle age. But no matter, you are quite correct in your analysis. Liberal governments have been bad for Australia, going back to the Howard times, when the housing fiasco kicked off. He did indeed attempt to buy his way into another term, franking credit mess, which ALP only want to restore the way it was before Howard got his hands on it.
But don't blame all Australia's boomers. Remember something like one in four are living in poverty and the Aged Pension is only a supplement amount, hardly akin to what European nations have to look forward to in retirement.
Yes, most of us realise how hard it is for our kids your age and that is partly why we do so much more grandchild care than our parents ever did. My grandmothers never minded us, my mother looked after my kids on some nights on weekends and my in laws never. I have been getting up at 5 30 one or two days a week these past six years to get to my kids'places to help with childcare, saving them $25 an hour. All my friends do the same and it is hard to even get together any more with them as everyone is so busy.
We are not without empathy and most of us also hand over large amounts of cash to help our kids with home deposits. Often six figure sums, which you will not hear about among Anglo Aussies at least, as the culture is to avoid discussing such things.
But I also know that not all families are willing and able to help out and as I said I agree that something should and will be done to equalise the tax burden.
The state of things, has created, a considerably amount of grief in many families, around entitlement with deceased estates, breaking sibling relations and so on. Fact being most parents cannot, nor should be in the position to have to part with large sums of money, in order for their kids to obtain a roof.
Who can afford to hand out hundreds of thousands to every child? Especially if having more than two. Where does that leave own retirement plans? Is that even desirable?( If affordable) A lot of young appear far more materialist than I ever was at their age, expecting top range early on. It's the message they've been sold, and fallen for it, for now, I'm afraid in too many cases.
I have witnessed the child sharing demands creating over time huge levels of discontent, anger and feelings of being taking for granted from within those close to me.
I think Labor's proposed changes are going to be more unpopular than they anticipate. Many working class immigrants have IPS, they particularly have appealed to older people who are not highly literate in English. They can understand and manage a house investment themselves whereas shares and other financial products are daunting.
That 30% is a lot of income to lose. We have paid plenty of tax over the years, we were only public servants on moderate incomes. But I feel we should probably at least pay the Medicare levy.
The proposals are merely correcting the Lib's giveaways under Howard. They will not impact most pensioners but will add money to the coffers for more important things than merely acting as a vehicle, for what are after all, fairly well off investors attempting to offset against income tax.
Most all pensioners will not be impacted anyway. The Lib's want to run with scare stories to make up for a shocking poor performance in government and being devoid, of anything, that could be termed meaningful policy.
No pensioners will be impacted because the ALP backflipped to protect themselves from irate pensioners. Pensioners are now exempt from the proposal. Realistically, those pensioners can thank the coalitions scare (true) stories for that.
It was politically smart by the ALP but certainly revealed their motivation for the policy.
No pensioners will be impacted because the ALP backflipped to protect themselves from irate pensioners. Pensioners are now exempt from the proposal. Realistically, those pensioners can thank the coalitions scare (true) stories for that.
It was politically smart by the ALP but certainly revealed their motivation for the policy.
Well not quite. Merely a return to original ALP policy. Howard attempted buy of votes at his last attempt to win another term, responsible for over generous terms. Must yes the exemption blunted the scare tactics that would have harmed electoral chances, although not sure just how many pensioners, actually vote ALP.
Present Coalition government will still run with a fear campaign allied with Murdoch press. Now they are attempting to install fear with boat arrivals. Really no shame these Lib's.
The real fear, should be of course, continued government by present lot. Not a great ALP supporter, but present lot deserve a lot time in the wilderness, reconsidering just what and who whom the liberal Party is for.
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