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Our income taxes, relative to the rest of the world, are quite high though.
The future of Australian property prices
- Thread starter Joe Blow
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Julia
In Memoriam
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The table only quotes income tax. We seem to have a lot of other levies as well, eg ambulance, medicare, GST, stamp duty, CGT etc. A more comprehensive table showing all taxes would be helpful if such exists.
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It does say Income tax "plus..." but I'm not sure what these are specifically.
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Average tax in Australia is 35% going to 50% for those that are on higher incomes. According to that grahp which states australia at around 22% only Iceland Denmark and Belgium have higher taxes
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Because we don't pay social security, it's just included in our PAYG taxes. Most countries split it, so you pay income tax and you pay social security. In reality they are both taxes.
When I lived in NYC, I paid more tax than I would on a comparable salary in Australia. Federal income tax + NY state income tax + NYC income tax...it all adds up. Then you need to get pay for healthcare, which I was lucky enough to have included but 50 million Americans don't get.
In Europe, income tax rates are high and you have to pay a VAT that is double what you pay in Australia. Australia has one of the smallest government sectors in the world, when measured as % of GDP.
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vat = gst
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The average Australian does not pay 35% of their income in tax. Assuming no deductions, you'd need to be earning over $250k to be paying that much in tax.
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Here's total government revenue to GDP. Again, we are way toward the bottom. And when you look at some of the luminaries ahead of us (Greece, Ireland) you get the feeling we probably have it about right.
The argument that we are the highest taxed nation on Earth is pretty ridiculous, IMO.
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$18,201 - $37,000
19c for each $1 over $18,200
$37,001 - $80,000
$3,572 plus 32.5c for each $1 over $37,000
$80,001 - $180,000
$17,547 plus 37c for each $1 over $80,000
$180,001 and over
$54,547 plus 45c for each $1 over $180,000
assuming average aussies are in second bracket 32% the closer you get to making 80k the less u actually get back on your return, lucky to see around $500
bit of interest in the bank, some small investment and suddenly you are actually owing money to the ato.
Last few tax returns I consistantly have to pay back close to 1k and I am in the 32% bracket
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Sorry, I'm not quite sure what point you are trying to make.
I said the average income tax in australia was around 35% and you said it was nowhere that high
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It's not. Go and calculate how much tax you actually pay as a % of your income, not what marginal tax rate you are on. On $80k you pay about 23% income tax.
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All I said was average income tax .. you filled in the rest
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Difference between marginal rate and actual rate paid. at $80002 marginal rate is 37% but actual rate is around 22%. The tables would be on aggregate actual rate rather than marginal rate of the 'average income' earner
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All I said was average income tax .. you filled in the rest
Right, and what does average income tax mean? Most would assume it means how much income tax the average person pays, not whatever marginal rate they happen to be on. If you earn $18,201 would you tell people you pay 19% income tax, even though you will have only paid 19c in tax?
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It is a pretty relevant question ...
... but from your answer it appears your summary seems to be, you just want it easy, and you dont want too have to work to hard for a house ... but the work only begins when you buy one
... so good luck with that.
You can probably afford plenty right now ! Me and my partner are on ordinary wages at present, and yet weve purchased a house while still in early 20's. Theres plenty of stock around that available for first home buyers in affordable price ranges were we are from. We'll get the dream house after weve paid off the relatively small amount of debt on this one which is on track to be done when we turn 30.
Sorry RandR I'm with magoo on this one. Didn't you see him say that housing is a necessity, and people shouldn't be allowed to invest and or speculate on it?
In fact, I think that it's such a necessity that the government should just start giving away houses paid in full to anyone who asks nicely. Especially those that are too lazy to make something of themselves and provide for their family. It could be the ultimate welfare scheme!
Magoo you get the ball rolling by calling gillard, and I'll get a petition going or something. Also I don't like the way people are making money in the share market, especially bank stocks, as it's making the banks charge me more to please share holders. So perhaps we can look at destroying stock investment also.
Bill M
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No bla bla here magoo, just the facts. New land release in Edmondson Park (south west Sydney) will be on sale at 10 AM tomorrow. Land only, Priced from $245,000 - $315,000 further info here
And guess what? People are camping out overnight to secure their land. As I said, it doesn't matter what anybody thinks, all that matters is what Australians are will to pay for their real estate. Appears to be no shortage of buyers in Sydney anyway.
Story here
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Mr Smith and Ms Courtney said they didn't intend to queue so early but decided to trigger their plan when they drove past the development on Saturday.
"We are the only ones who are reasonably prepared, we're not roughing it that bad," Mr Smith said.
The couple organised time off work and take turns to go home for showers.
http://liverpool-leader.whereilive.com.au/news/story/richard-smith-and-merryn-courtney-camp-out-in-car-for-land-at-edmondson-park/
---
See Japan for further info.
We're in the same situation as the yanks from 04 to about 06. The economy is slowly eating itself away and getting ready for a big implosion that everyone says cannot happen.
Wages not growing.
Consumptions going to fall off the cliff.
Jobs going to be lost.
Consumption will fall even further.
Tax revenues going to plummet.
Government will lay EVERYONE off.
Feedback cycle.
Huge recession.
Lack of disposable income due to inhibitive housing costs won't help either.
OMG, dont tell me the sun is going to stop shining as well, house next to us was on the market for 7hours, and sold. I take it from your posts that you are a renter????
