Thread: tax cuts- what will you spend yours on?

Originally Posted by Eevo

new AMD pc

Just did that. Upgraded a few items including the motherboard and processor- first time I’ve used AMD and I’m pretty happy with it.

Originally Posted by Tombie

I can’t remove my assets or super yet (old but not that old) but I’m not too bothered...

Between the wife and I we won’t want for anything unless we live to be about 120yo

Sounds good. Suggest you stack the maximum possible into super while still working, if you're not already, to be available to draw on as needed after retirement.

As usual that is a big middle finger to the average australian .... but a nice big hand up for the wealthy.

Forget "average". the median australian wage is $48,360

How much income tax will you save?

By Andrew Kesper
$
2020-21
$1,080 per year

From 2021-22
$0 per year

From 2024-25
$84 per year




Lets assume you have two median workers in the one household. about $100,000 a year

How much income tax will you save?

By Andrew Kesper
$
2020-21
$1,530 per year

From 2021-22
$750 per year

From 2024-25
$2,125 per year








OK. Now lets check the "poor" people that government is trying to throw a handout too. If your on $150k a year

How much income tax will you save?

By Andrew Kesper
$
2020-21
$2,430 per year

From 2021-22
$2,430 per year

From 2024-25
$6,405 per year





Lets pretend were on an average politicians wage .... ( ignoring all there perks ). a minimum of $200k a year.

How much income tax will you save?

By Andrew Kesper
$
2020-21
$2,430 per year

From 2021-22
$2,430 per year

From 2024-25
$11,505 per year





This is a HUGE tax cut for the most wealthy in our society with bugger all for the normal person.

Originally Posted by Tombie

Between the wife and I we won’t want for anything unless we live to be about 120yo

We are the same,will be fully self funded,no burden on anyone,put the max into our super every year for as long as I can remember.

But will still pay tax on our other investments that are not in our super fund,as they were bought many years ago and have very good returns.

Just note that if you are in the 65/66 yo range, there is a one off exemption this and next FY to deposit funds into super - a great chance to top up super if you have some spare cash or have other investments that you pay tax on.

Remember after a certain age (depending when you were born) all income and withdrawals from super is tax free. Rather than setting an income stream from these I just withdraw as needed - no tax but I do live day to day on a small govt pension which is unfortunately taxable and there is nothing I can do about this.

Garry

Originally Posted by 101RRS

Just note that if you are in the 65/66 yo range, there is a one off exemption this and next FY to deposit funds into super - a great chance to top up super if you have some spare cash or have other investments that you pay tax on.

Remember after a certain age (depending when you were born) all income and withdrawals from super is tax free. Rather than setting an income stream from these I just withdraw as needed - no tax but I do live day to day on a small govt pension which is unfortunately taxable and there is nothing I can do about this.

Garry

Yes even younger than 65/66 a large lump sum,I think it is one off,can be put in super.
The accountant sorted ours,but I can’t remember the actual ruling.
Although there could be a cieling on it at our age.

Originally Posted by scarry

We are the same,will be fully self funded,no burden on anyone,put the max into our super every year for as long as I can remember.

But will still pay tax on our other investments that are not in our super fund,as they were bought many years ago and have very good returns.

We decided against having many other investments after a while.
With the ex’s greedily gobbling up big chunks of our income stream for 19+ years it wasn’t viable.

I have a decent chunk in a property in Thailand though - which is the intended retirement point for 50% of our time.

Originally Posted by DoubleChevron

As usual that is a big middle finger to the average australian .... but a nice big hand up for the wealthy.

Forget "average". the median australian wage is $48,360

How much income tax will you save?

By Andrew Kesper
$
2020-21
$1,080 per year

From 2021-22
$0 per year

From 2024-25
$84 per year




Lets assume you have two median workers in the one household. about $100,000 a year

How much income tax will you save?

By Andrew Kesper
$
2020-21
$1,530 per year

From 2021-22
$750 per year

From 2024-25
$2,125 per year








OK. Now lets check the "poor" people that government is trying to throw a handout too. If your on $150k a year

How much income tax will you save?

By Andrew Kesper
$
2020-21
$2,430 per year

From 2021-22
$2,430 per year

From 2024-25
$6,405 per year





Lets pretend were on an average politicians wage .... ( ignoring all there perks ). a minimum of $200k a year.

How much income tax will you save?

By Andrew Kesper
$
2020-21
$2,430 per year

From 2021-22
$2,430 per year

From 2024-25
$11,505 per year





This is a HUGE tax cut for the most wealthy in our society with bugger all for the normal person.

In relative terms it’s nearly double the benefit ( % ) for the lowest income earner in your example vs the highest.

As the Person on $150k already pays nearly $50k tax and will only receive a smaller percentage of their earning back I’d suggest they won’t notice it much.


The solution to the problem - change career paths - never too late.