The Federal Budget was released today and I thought I would post a thread about it… Details are here http://www.budget.gov.au/2004-05/overview/download/budget_overview.pdf
So first –Overview:
Nothing amazing or new, budget in surplus, low unemployment, low inflation,… FHOG still here, new baby bonus $3K (04), then $4K (05), $5K (06).Tax Rates (page 8 of document):
Well for employes earning over $52K per yr. it’s a good budget. For those that earn less you might get some family benefits. For those who have corporate entites (i.e. have companies and trusts), not much here for us the only good point is that now we can pay ourselves a much bigger salaray if we hit over the 30% tax rate – and that will look better for the banks. This is the only benefit for us.Super (p9):
Reduction in super surcharge (to 7.5% 06-07) and also if you are low income earner gov. will match up to $1500 (up $500). No change for us who don’t have super funds (nothing really worthwhile).Other:
New Family Benefits ($600 per child per yr), this seems only to apply to ‘poorer’ familes.Review:
All in all a boring, vote buying budget. Good for high earning employes with (or having) kids (soon). Nothing for business (or professional investors). Will be having more promises during the next election (looking at Oct/Nov), so hopefully something for us.Rgds.
Lucifer_auOriginally posted by Lucifer_au:Review:
All in all a boring, vote buying budget. Good for high earning employes with (or having) kids (soon). Nothing for business (or professional investors). Will be having more promises during the next election (looking at Oct/Nov), so hopefully something for us.Rgds.
Lucifer_auI am confused with yr comments.
What would make you happy or fit your particular criteria?
Seems a well rounded budget that has many benefits to the lower income (and higher income) child raising families. Benefits to the higher income earner by shifting the bracket to $70k. I wouldve thought as a “professional” investor would this would at least make you happy. This is a far more ‘lefty’ budget then normal from the liberals.
Nothing for business? Well most changes the libs have tried to benefit business get held up in the senate ;-(
The problem with super is still present but then labour has no answer either to this. But definately the family packages look good.
Vote grabbing yes i agree but show me a budget that isnt…ha least Costello admitted it.
Other:
New Family Benefits ($600 per child per yr), this seems only to apply to ‘poorer’ familes.Can you please define ‘poorer’ I am deeply offended by your insensitive and demenaing comments. Like everyone on this forum is ‘farting in SILK’
You wanna piece of me???
[jerry]Coincidentally, I was watching a real estate video on the weekend- from some network- the video i got free at the Property Expo- on tax and RE… anyhoo..
The presenter asked the audience if any of them remember the last tax cut we got and what did we do with the money? He asked if anyone put it onto paying off their PPOR or IP. Noone had.
This Budget, there will be tax cuts for some workers. It probably really is an idea to put that extra dosh into paying off property. We never think about it much when we get a bit of a pay rise (well, i don’t) but seriously, it would probably be a good use of the tax cut.
kay henry
SuperTed I use corporations and trusts to reduce my taxes, therefor I want things like faster depriciation write offs, changes in CGT or higher amounts in the $0-$6K tax brackets (so it would be great if it went to $0-$12K), as well as the 17% tax bracket.
‘poorer’… eh’, if you pay no tax you must be poor!
‘poorer’ some one who is not earning over $52K per yr (in this case).
But I degress – silk sheets… mmm…
Rgds.
Lucifer_auThe presenter asked the audience if any of them remember the last tax cut we got and what did we do with the money? He asked if anyone put it onto paying off their PPOR or IP. Noone had.Those with LOC or Mortgage offset would automatically be paying more off their PPOR (if that is what their loan is on), it depends if their spending habits were worse after the cut than before. If I was there I would’ve raised my hand.[biggrin] This budget does not directly affect me though since I earny under 52k and I don’t have any kids yet.
Originally posted by Lucifer_au:SuperTed I use corporations and trusts to reduce my taxes, therefor I want things like faster depriciation write offs, changes in CGT or higher amounts in the $0-$6K tax brackets (so it would be great if it went to $0-$12K), as well as the 17% tax bracket.
Rgds.
Lucifer_auWhat would be the total amount for you if the move was from 0-12k??
Generalised comments not directed at you Lucifer
Overall the budget “hits” more people then “misses” them in my opinion. Most people have come out with the “there is nothing in there for me” line, even Latham (which is bordering on hysterical). But like all goverments they will find a way to give with one hand taketh away with the other.
Vote Latham in you will definately get changes in CGT, but not the one you had in mind (Access economics report ring a bell). Additonally if the budget is such a bad thing why has labor said it will not block it passing throught the senate?
But in this case I am not totally anti-labor just anti-stupid. To me voting for Latham is like the Americans vote for Bush (you just need someone that has a few more lights on upstairs, if they want to be leader of the my/our country).
“Additonally if the budget is such a bad thing why has labor said it will not block it passing throught the senate?”
I didn’t say it was a bad budget – just a really, really boring one!
As for Latham, I do agree with you. It’s good he has ‘newish’ ideas, but I don’t really trust labour. They seem to like slogging it to middle to higher end income earners (as well as small/medium businesses, but of course not the super rich…).
So it seems to me that Liberal will protect my interests more, and they haven’t done to bad a job (except this budget, isn’t really that fantastic), so they get my vote (unless labours budget ends stamp duty (i.e. yeah I know it’s a state tax, but they could work something out), or CGT…Rgds.
Lucifer_auI recall that with the introduction of the GST, there was supposed to be a plethora of state taxes which were eventually going to be disbanded due to the extra revenue. This obviously hasn’t happened. Well the increased revenue is there.
As an electorate, we are high maintenance. (Like my ex- girlfriend!). We like it when the government spends money on the things we want or think we want. Not poo pooing government spending in general (I think we have had a previous post on this before), but we are gluttons for the political salesman/women.
It’s your money Ralph!
James
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