- Joined
- 28 August 2022
- Posts
- 6,684
- Reactions
- 10,850
Just came across the 85-86 tax brackets. Was self emploed by then. But the tax payable certainly didn't give incentive to make a dollar.
tech/a
No Ordinary Duck
- Joined
- 14 October 2004
- Posts
- 20,426
- Reactions
- 6,394
Just another spin on this tax issue.
from a small business owner ( under $30 million Turnover )
My company has to make enough money to pay my employees including their tax
Their work cover, any fringe benefit tax, GST , Company tax , forward company tax
Superannuation, Payroll Tax, Then I have my own taxes.
personally if someone puts their ideas, money and often their family security up front
to supply a livelihood to those who chose to work in their business they should be able to reap
the rewards of innovation and expertise in any given area and maximise their return while minimising their tax.
Trust me if it all goes pear shaped, the vast majority of people will jump ship and find another employer.
Millionaires don’t burden the pension system or social security and they spend a lot. Many
help some of those worse off without fanfare. Invest surplus which in turn benefits others and sure they get a cop.
If you know a self made millionaire chances are they aimed at success in their passion not a million/s
Learn from them , they were naked and penniless at birth just like you ( most of them )
Us v them is a crazy concept. One of my greatest joy is seeing some of my employees buy and eventually own their home during the time they support us. Sure I also see the other rise as well.
Choices!
from a small business owner ( under $30 million Turnover )
My company has to make enough money to pay my employees including their tax
Their work cover, any fringe benefit tax, GST , Company tax , forward company tax
Superannuation, Payroll Tax, Then I have my own taxes.
personally if someone puts their ideas, money and often their family security up front
to supply a livelihood to those who chose to work in their business they should be able to reap
the rewards of innovation and expertise in any given area and maximise their return while minimising their tax.
Trust me if it all goes pear shaped, the vast majority of people will jump ship and find another employer.
Millionaires don’t burden the pension system or social security and they spend a lot. Many
help some of those worse off without fanfare. Invest surplus which in turn benefits others and sure they get a cop.
If you know a self made millionaire chances are they aimed at success in their passion not a million/s
Learn from them , they were naked and penniless at birth just like you ( most of them )
Us v them is a crazy concept. One of my greatest joy is seeing some of my employees buy and eventually own their home during the time they support us. Sure I also see the other rise as well.
Choices!
wayneL
VIVA LA LIBERTAD, CARAJO!
- Joined
- 9 July 2004
- Posts
- 25,807
- Reactions
- 13,022
You haven't met my wife
tech/a
No Ordinary Duck
- Joined
- 14 October 2004
- Posts
- 20,426
- Reactions
- 6,394
So business owners who employ 20/50/100 people should be restricted to a Max of $200k
why would anyone take the risk of building a business!
Millionaires don’t look at the money they accept the challenge , money is a consequence.
Besides how would you ever find a buyer for homes in Vaucluse!
- Joined
- 30 May 2017
- Posts
- 2,513
- Reactions
- 4,140
Question to all the small business owners of ASF:
With all the potatoes, gravy and lard added as enforced by the authorities who seem to layer on more fat each change of govt, what's the total cost of hiring an employee?
So, let's say if I promise to pay $40/hr for my employee as a base rate. By the time I add the super, leave entitlements, workers compensation etc etc what do I have to put aside as the total expense per hour for the employee ?
With all the potatoes, gravy and lard added as enforced by the authorities who seem to layer on more fat each change of govt, what's the total cost of hiring an employee?
So, let's say if I promise to pay $40/hr for my employee as a base rate. By the time I add the super, leave entitlements, workers compensation etc etc what do I have to put aside as the total expense per hour for the employee ?
- Joined
- 14 February 2005
- Posts
- 15,215
- Reactions
- 17,285
One issue in particular is those who make big money but who are doing so in decidedly short lived careers that don't naturally lead to anything else ongoing.
Professional sports, music, models and so on.
OK, the odd musician makes a long term career out of music and the odd random football player ends up with a career in TV but most such people are done at a pretty young age.
So their income might seem high but taken over a lifetime it really isn't unless they're investing etc.
tech/a
No Ordinary Duck
- Joined
- 14 October 2004
- Posts
- 20,426
- Reactions
- 6,394
$54-60
Plus a car in most cases
So add another $15-20 an hr
Our charge out rate for 3 man Crew is $2300 a day +GST We sacrifice an excavator or Skid steer in that rate as tools of trade.
Unless specifically doing a task such as bulk earthworks or Pile drilling. Which attracts rates of $170 to 270 an hr including operator plus site mobilisation.
- Joined
- 3 July 2009
- Posts
- 27,425
- Reactions
- 24,212
When I was gainfully employed as a project manager, the rule of thumb for wage earners was add 50%, as @tech/a mentioned.
- Joined
- 28 August 2022
- Posts
- 6,684
- Reactions
- 10,850
A hell of a lot. I used to eork on 2.5 times the hourly rate some years ago when I stupid enough to employ help.
tech/a
No Ordinary Duck
- Joined
- 14 October 2004
- Posts
- 20,426
- Reactions
- 6,394
Charge out or cost?
$40 charge $100 ?
- Joined
- 30 May 2017
- Posts
- 2,513
- Reactions
- 4,140
OK, thanks heaps for the responses.
Just goes to show how much more costly and complex to hire employees now than in the good old days when it was just hourly rate then later hourly rate + super. Nowadays, so many entitlements to deal with and so much complexity.
Just goes to show how much more costly and complex to hire employees now than in the good old days when it was just hourly rate then later hourly rate + super. Nowadays, so many entitlements to deal with and so much complexity.
wayneL
VIVA LA LIBERTAD, CARAJO!
- Joined
- 9 July 2004
- Posts
- 25,807
- Reactions
- 13,022
Hourly rate plus
Super
Paid holiday plus loading
Sick day entitlement
Bank holidays
Trade school if an app
Workmans comp and other premiums
Payroll tax
Administrative costs!!!!
What else have I forgotten about?
Super
Paid holiday plus loading
Sick day entitlement
Bank holidays
Trade school if an app
Workmans comp and other premiums
Payroll tax
Administrative costs!!!!
What else have I forgotten about?
- Joined
- 14 February 2005
- Posts
- 15,215
- Reactions
- 17,285
Long Service Leave
Business overheads that scale with the workforce eg tools, vehicles, uniforms, etc
Legitimate (unintentional) mistakes made by new and especially inexperienced staff causing loss of materials, damaged equipment, lost time etc.
Time spent by existing staff training new workers and associated lost productivity.
Malicious damage or theft.
"Personal" performance issues - apprentices aged 18-19 are especially are prone to this.
- Joined
- 28 August 2022
- Posts
- 6,684
- Reactions
- 10,850
Got tired of carying a coupe of so called workers. One would be looking skywards gawking at the passing aircraft if we were in the flight zones. Another would just lose tools.
So many years ago but then I was paying around $25 an hour but not with as many bits and pieces so averaged out at about $75 an hour.
Came to the conclusion I was better off taking a bit longer to do the work on my own, or if i really got stuck, could call on the chief cook and bottle washer to help move machinery from job to job. As this is still the case today.
- Joined
- 28 August 2022
- Posts
- 6,684
- Reactions
- 10,850
Well Wayne, after all of that, is there anything left to pay yourself.
- Joined
- 28 August 2022
- Posts
- 6,684
- Reactions
- 10,850
Some of the reasons I bailed out as an employer.
- Joined
- 8 June 2008
- Posts
- 12,907
- Reactions
- 18,922
Similarly, body destroying intense manual work, or even top notch IT guru with need to fully update at crazy high rate...One issue in particular is those who make big money but who are doing so in decidedly short lived careers that don't naturally lead to anything else ongoing.
Professional sports, music, models and so on.
OK, the odd musician makes a long term career out of music and the odd random football player ends up with a career in TV but most such people are done at a pretty young age.
So their income might seem high but taken over a lifetime it really isn't unless they're investing etc.
You can not remain at the top year after year as you age.
By 40 or 50, you are on the down path and need to either retire or change role job
- Joined
- 8 June 2008
- Posts
- 12,907
- Reactions
- 18,922
Add own experience,
The customer does not pay, or not pay in time...
Yet you pay your employee..double whammy.it is one thing not being paid, but worth not being paid and paying for it
Country Lad
Off into the sunset
- Joined
- 11 July 2005
- Posts
- 1,591
- Reactions
- 1,560
As well as the ones that others have mentioned there were the in-house non-productive overhead costs. I had a business which was similar in part with that of @tech/a.
At the time I averaged 40 to 60 employees in the field earning the money but also a comparatively large design and admin overhead cost administering the workforce which had to be recovered in the charge-out rates. Then there was the issue of being in Nth Q’ld with the periods of the field staff downtime because of heat or wet weather.
The interesting thing is that when I sold and started another business with 1 shared paid staff member and very little overheads – office, car and telephone, I made a much higher profit than the previous business with its huge turnover, and all that staff.
