$900 handout

[Wysiwyg]

Its your tax minus offsets and minus franking credits that it is calculated on. I earned over $30,000 but because i had several thousand dollars worth of franking credits i'm not eligible.

This conversation is in reference to the low income earners and if they are eligble. What I typed is truth.

If you made $9000 and paid $1100 in tax, then after your deductions/claims, your taxable income is say $8500 then your tax payable is calculated on this amount.
If paid more tax .. a refund, if paid less tax .. more to pay.If you have paid more than zero income tax you are eligble.

 

[Duckman#72]

This conversation is in reference to the low income earners and if they are eligble. What I typed is truth.

If you made $9000 and paid $1100 in tax, then after your deductions/claims, your taxable income is say $8500 then your tax payable is calculated on this amount.
If paid more tax .. a refund, if paid less tax .. more to pay.If you have paid more than zero income tax you are eligble.

You're missing the devil in the detail about the offsets. The Low Income Offset kicks in at $6000 and ensures that (as a general rule) tax is not payable where the taxable income is less than $11,000.

The example you've given is not possible (or at least highly unlikely). If your taxble income was $8500 then you have not had to pay any tax. You are confusing the PAYG amounts deducted as "tax payable".

Duckman

 

[Junior]

This conversation is in reference to the low income earners and if they are eligble. What I typed is truth.

If you made $9000 and paid $1100 in tax, then after your deductions/claims, your taxable income is say $8500 then your tax payable is calculated on this amount.
If paid more tax .. a refund, if paid less tax .. more to pay.If you have paid more than zero income tax you are eligble.

If you earn $11,000 then your tax payable would be $750. However you would be entitled to the 'low income tax offset' of $750. Hence you pay no tax and are not entitled to the bonus.

 

[Wysiwyg]

You're missing the devil in the detail about the offsets. The Low Income Offset kicks in at $6000 and ensures that (as a general rule) tax is not payable where the taxable income is less than $11,000.

The example you've given is not possible (or at least highly unlikely). If your taxble income was $8500 then you have not had to pay any tax. You are confusing the PAYG amounts deducted as "tax payable".

Duckman

So are you saying the tax free threshold is effectively $11k?

Therefore any tax paid will be refunded!!!!

 

[Wysiwyg]

If you earn $11,000 then your tax payable would be $750. However you would be entitled to the 'low income tax offset' of $750. Hence you pay no tax and are not entitled to the bonus.

Okay got it from the ATO site calculation and the offset of $750 nullifies the tax payable on $11000.

 

[Gerkin]

Can someone please answer this query.
If my mum (non employed) had income of $13,000 Capital Gain not eligible for discount, $1000 interest income. Is she eligible for the bonus.

Thanks and best regards

 

[rcm617]

If you earn $11,000 then your tax payable would be $750. However you would be entitled to the 'low income tax offset' of $750. Hence you pay no tax and are not entitled to the bonus.

And if you are over 55 you get a senior offset of $500, if you got a dependent wife you get a dependant offset of $2100 which all have to get taken off the tax payable as well as any franking credits. A lot of people are going to miss out who think they will be getting the bonus.

 

[rcm617]

Can someone please answer this query.
If my mum (non employed) had income of $13,000 Capital Gain not eligible for discount, $1000 interest income. Is she eligible for the bonus.

Thanks and best regards

Depends if she put in a tax return, what age she is and what deductions she had.

 

[Gerkin]

Depends if she put in a tax return, what age she is and what deductions she had.

No Deductions
Age 54.
Tax return lodged and tax paid via cheque to ATO

Thanks

 

[insider]

Ridiculous. How can you earn too little and not be eligible?
I am 19, a trainee, I earn $300 a week for 38 hours and I do not qualify for any centerlink money because my parents have lots of money.I'm always getting absolutely nothing. Might as well quit and move across the road and get the living away from home like everyone else around me seems to do, despite still being AT home most days. Im so sick of assholes getting money they don't deserve. I'm going to go home tonight and blow the whistle on every single person screwing the system around, friend or not. I've had enough.

Buddy buddy buddy... This is the exact same reason why I got into the stock Market... I'm better for it and so are you... I'm not going to have fun with that $900... Most people are gong to pay off their bills with it... Don't worry about the a**holes because one day you'll be one in your Ferrari... Get my drift... Also owning more than $5000 in liquid assets makes you ineligible for lots of benefits...

But maybe you should move out on paper and defraud the government of money... They go on taxpayer funded holidays often I hear...

Life isn't fair... It's a good thing

 

[Prospector]

No Deductions
Age 54.
Tax return lodged and tax paid via cheque to ATO

Thanks

If your mum paid more than $1 to the ATO as a result of the lodgement and receipt of Tax assessment notice; or she had money taken from PAYG by her employer, not all of which was sent back to her by the ATO, then she should receive the stimulus.

 

[Julia]

Hiya Julia,


But your SMSF pays heaps less tax as a % than individuals so you are miles ahead .....

Of course Super receives a tax advantage! There has to be some incentive to lock your funds away and to encourage people to save for their retirement, thus hopefully not being a burden on the taxpayer.

The reduced tax goes some way towards offsetting the considerable costs involved in running a SF.

Miles ahead? You'd have to be joking!

 

[kingcarmleo]

wyswig don't you blow your top off at me, It is not my fault the government handled this so poorly. There was an add in the paper a few weeks ago saying "if you earn under 100k you are probably eligible for a $900 payment" the government don't even have a clue themselves!

 

[Sir Osisofliver]

Of course Super receives a tax advantage! There has to be some incentive to lock your funds away and to encourage people to save for their retirement, thus hopefully not being a burden on the taxpayer.

The reduced tax goes some way towards offsetting the considerable costs involved in running a SF.

Miles ahead? You'd have to be joking!

GRAAAGH - Super rant engage now.

Blargh *Shudder* *twitch*

Super is bad..make bad super calculations go away now.

Guess how much I have in super Julia?

I've personally never made a contribution to super, never salary sacrificed, never co-contributed. The only thing I have in super is MANDATED employer contributions into a SMSF and baby when I hit 55, Transition to Retirement scheme will be pulling those funds out quicker than you can say maximum deduction please.

There is a particularly labour orientated, well known professor at a university in NSW who advises the government on all sorts of issues to do with superannuation. Some of the things this amazingly educated financial genius recommends to the Govmint that they should do things like... a) make it impossible to remove money as a lump sum b) require 30% of all pension phase Super Schemes to be in ANNUITIES:chainsaw: And they are LISTENING TO HIM.

When setting up the Superannuation scheme the Govmint asked the insurance and annuity companies to do some projections, and several years later there was a senate inquiry into why the projections (You know those things that are meant to keep us off the bread line in our dotage) were miniscule in comparison to the projections, and why the fee's that the annuity and superannuation fund managers seemed to be so excessive... to which the response was "well we haven't got enough money yet for economies of scale."

WTF? The government actually bought this pile of steaming horse manure, while the super and insurance companies rubbed their hands with glee and thought up more ways to rip everybody off. I mean seriously? - Here look after billions and billions of dollars but we're trusting you not to take more than you need to ok? It's like giving the fox the keys to the hen house and asking him to look after it over the weekend.

Go look at the legal action where the Government won against a whole raft of companies who breached the Superannuation fee guidelines, jointly they paid out 1.3 BILLION dollars in fines for breaching the rules (which considering the amount of money they were bringing in was a slap on the wrist).

That isn't even to mention that aside from seemingly coating yourself in barbeque sauce and inviting the sharks to take a bite from your left butt cheek, superannuation because of the severe limitation on gearing, despite the "tax advantage" screws your long-term earning potential.

$100k invested through a SMSF (and trust me a properly managed SMSF Sh!ts all over Managed funds), versus $100k with minimal gearing, and risk management in place? There is no comparison over the longer term. The SMSF ends up with a ****load of opportunity cost.

Me I want my long-term money under my control, not subject to whatever freaking interest group can lobby (bribe) the government in giving them a greater ability to take chunks of net worth away from my kids and grandkids.


rant end now.

Sir O

 

[son of baglimit]

Be careful WYSWYG.

Do you play cards? If you are going to go "all in" you need to be pretty sure of your hand......and that of your opponents. I'm going to watch the next move. (I'm betting on your opponent).

Duckman

and i aint laying that bet for anyone lol

Okay got it from the ATO site calculation and the offset of $750 nullifies the tax payable on $11000.

sorry wys - knowing this rubbish is my job - its still a very simplified version thou, cos once you get centrelink as well, it gets real ugly.

and yes, for those who cruelly get refunded all their tax thru franking/medical expenses/medical insurance/mature age or other offsets, they become ineligible too.

fyi - the $11000 becomes $14000 in 2009 - what a wonderful world.

 

[Wysiwyg]

and i aint laying that bet for anyone lol

sorry wys - knowing this rubbish is my job - its still a very simplified version thou, cos once you get centrelink as well, it gets real ugly.

and yes, for those who cruelly get refunded all their tax thru franking/medical expenses/medical insurance/mature age or other offsets, they become ineligible too.

fyi - the $11000 becomes $14000 in 2009 - what a wonderful world.

Yeah sorry man, next time I will leave the taxation ruling comments out.

Aint this forum the best for learning.

 

[jackson8]

does anyone know about this or have received their payment the same

having received my tax assessment as a sole trader i now owe ato certain amount for 07/08 have another month to pay it.

last week i logged on line to tax portal and found that i have $900 credited to my tax account.....no explanation and cant find any information to this kind of payment from ato site

as far as i know payments weren't being released till this week anyway as the gov were waiting on court judgment

am half hoping that i am going to receive another $900 in the bank account as well over next few weeks.

gary

 

[son of baglimit]

does anyone know about this or have received their payment the same

having received my tax assessment as a sole trader i now owe ato certain amount for 07/08 have another month to pay it.

last week i logged on line to tax portal and found that i have $900 credited to my tax account.....no explanation and cant find any information to this kind of payment from ato site

as far as i know payments weren't being released till this week anyway as the gov were waiting on court judgment

am half hoping that i am going to receive another $900 in the bank account as well over next few weeks.

gary

yeah ive seen that too gary - i assume they have allocated the money to those eligible, but still have to 'release' it, as they normally do with gst & other refunds you see thru the portal. i understand that process is going to take 6 weeks for everyone.

 

[Julia]

$100k invested through a SMSF (and trust me a properly managed SMSF Sh!ts all over Managed funds), versus $100k with minimal gearing, and risk management in place? There is no comparison over the longer term. The SMSF ends up with a ****load of opportunity cost.

Me I want my long-term money under my control, not subject to whatever freaking interest group can lobby (bribe) the government in giving them a greater ability to take chunks of net worth away from my kids and grandkids.


rant end now.

Sir O

I have a SMSF which, as you point out, means my funds are under my control. Without holding funds in Super I'd be paying more tax so I have no problem with using Super as a vehicle.

Agree entirely about managed funds, but also recognise that your average Australian is simply not sufficiently interested to consider self managed fund and/or has insufficient funds tomake this viable.

 

[freebird54]

Always talk to your accountant - and change him if unhappy
I did and the new one got all my imputed credits back on my divs - and its a company!!!

never got that before before

I wonder how many millions are submitting an amended tax return to get the 900 - and if they do will the ATO blacklist them ;-)