# Budget 2006



## Duckman#72 (9 May 2006)

Well the budget's out....and more far reaching than the conservative budget the forecasters were expecting. 

Top rate of tax $150K, 30c per dollar up to $75k and cuts to tax to super!!

Might not be so attractive to holders of Great Southern and other tax effective investments and also negatively geared rental properties.

From what I've seen so far it looks reasonable. (Well as good as it could get without amy real tax reform!!). This is what Swan and Labor will have to argue but it's going to be hard for them with so many Aussies getting a windfall.

Duckman


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## ctp6360 (9 May 2006)

*Re: Budget*

I heard they are dropping top tax rate from 47% to 45%, **** me if only they had done this last year (long story)! Anyway, its good news, I'm sick of having to divide everything I earn by two! At least this gives us something decent more than half!

P.S. Does anyone know from past experience if this budget will affect share prices tomorrow? I didn't really listen in economics and don't know what kind of things affect people's behaviour, but I imagine any type of financial news splashed all over the newspapers would affect people's emotions!

I hope they collectively decide to buy $100,000,000,000 BHP shares at market, then they can charge me whatever tax rate they like!


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## krisbarry (9 May 2006)

*Re: Budget*

I am happy with the budget, being a low income earner, I will be getting an extra $1,000 per year or around $19 per week.  Thanks Johnny! :


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## GreatPig (9 May 2006)

*Re: Budget*



			
				ctp6360 said:
			
		

> I heard they are dropping top tax rate from 47% to 45%, **** me if only they had done this last year (long story)!



Or a couple of years ago for me. Would have left me enough for another parcel or three of BHP  

Budget summary here.

GP


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## ctp6360 (9 May 2006)

*Re: Budget*

ARE YOU SERIOUS? We spend more than 1/3 of the country's money on Social Security and Welfare???? What does that consist of?

- Dole
- Pension
- Workers Comp
- ??

That's a fair bit of money especially when you consider it doesn't include health....

I really should learn more about government/politics


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## Duckman#72 (9 May 2006)

*Re: Budget*



			
				ctp6360 said:
			
		

> ARE YOU SERIOUS? We spend more than 1/3 of the country's money on Social Security and Welfare???? What does that consist of?
> 
> - Dole
> - Pension
> ...




No not workers comp ctp but there is..

Mature Age Allowance
Carers Allowance
Age Pension
Newstart
Austudy
Abstudy
Maternity Allowance
Immunisation Allowance
Family Tax Benefit Part A
Family Tax Benefit Part B
Partner Allowance
Child Care Rebate
Youth Allowance
Parmaceutical Allowance
Rent Assistance
........etc,etc,etc


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## dennisll (9 May 2006)

*Re: Budget*

Great to see more tax cuts, especially reduction of 47 and 42 levels to 45 and 40.  Getting closer and closer to a flat 30% tax rate 

More money for families with more children and child care as well.  Now that's what I call positive reinforcement!


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## kerosam (9 May 2006)

*Re: Budget*

let's not forget about the indigenous pple.

mmm... i hope this budget doesn't affect my tax-return much.


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## Smurf1976 (9 May 2006)

*Re: Budget*



			
				ctp6360 said:
			
		

> ARE YOU SERIOUS? We spend more than 1/3 of the country's money on Social Security and Welfare???? What does that consist of?
> 
> - Dole
> - Pension
> ...



Anyone know what % of Australians are receiving some form of welfare? Not just dole, pension etc. but also middle class welfare in its various forms. I suspect the figure is rather high.

It's an interesting form of socialism when it gets to the point of most paying and most receiving. At that level a lot of it could be eliminated completely with no harm to those receiving the welfare - don't take the money as tax and then no need to hand it back.

Personally I would like to see income tax simplified and scrap much of the welfare. No tax at all on the low income earners and then you don't need many of the payments to boost their income. A lot simpler and cheaper but of course that means shrinking the government itself so it won't happen.

I should add that I have no objection whatsoever to ongoing welfare funded from my taxes for those _genuinely_ needing help. Some people, through no fault of their own, are not able to earn sufficient income to support themselves. Such people deserve support from the rest of us. That includes those who keep applying for jobs and genuinely trying but are still unemployed and of course the disabled, sick, elderly etc. But those who see welfare as a permanent _alternative_ to work when they are able to get paid work are another matter.


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## Smurf1976 (9 May 2006)

*Re: Budget*



> Is there anything more amazing than the effect of compounding?



Only what happens when it's compunding losses of borrowed money rather than gains... Not that I'm wishing that on anyone.


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## clowboy (9 May 2006)

*Re: Budget*

Stop the Clock,

Without getting to personal can you explain the $1000 a year in tax cuts?

What are you including aside from personal tax?

Thanx.


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## krisbarry (10 May 2006)

*Re: Budget*

The low income rebate increases from its current level of $235 to $600. 

The increase of the first tax bracket from it current 15% tax rate at $21,600 to its new bracket of $25,000

Effectively making the first $10,000 earnt as tax free.


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## crackaton (10 May 2006)

*Re: Budget*

Middle income earners or singles get nothing from this budget. A measley 10$ per week in tax cuts and thats it. This will hardly offset the effects of inflation and rising rates.


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## BSD (10 May 2006)

*Re: Budget*

Breeders get the loot again. 


Waiting for the details, but the super changes look incredible. 

The death knell of negative gearing's popularity?


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## krisbarry (10 May 2006)

*Re: Budget*

Yes the super reform is great....the 15% super tax on payouts has now been abolished, great for those who are now entering their senior years.


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## krisbarry (10 May 2006)

*Re: Budget*

I do think another interest rate rise is on the way though...a tax cut on every level from $10 to $50 per week for the wage earners is going to see a huge amount of spending taking place.

Keep an eye on those rates boys and girls...all indications point to upward inflationary pressure!


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## clowboy (10 May 2006)

*Re: Budget*

What I can't understand is that they had on the news an individual on 30k will get a $18 a week benefit, but I only work it out at $9 (25-21.4 *0.15)

Given that the rabate cuts out at like 26 or whatever the new rate is I can't see how they came up with this calculation.


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## Duckman#72 (10 May 2006)

*Re: Budget*



			
				crackaton said:
			
		

> singles get nothing from this budget. A measley 10$ per week in tax cuts and thats it. This will hardly offset the effects of inflation and rising rates.




Who has more expenditure a family of 4 on $50,000 or a single person on $50,000?

A lawyer once told me "there is a difference between being fair and equal". 

You need to know the difference Crackaton. They will never make it equal but they need to make it fair - I think they are trying to do that.

But it is a completely different thread  - should we be disadvantaged/advantaged over our lifestyle choices?


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## GreatPig (10 May 2006)

*Re: Budget*

Goddam... too many more openings like this and I'll be forced to retire early!

GP


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