Inflation

[Value Collector]

As I said, bartering always has and always will exist, no matter what the Govt does, people with skills will always find a way of bypassing the system.
Jeez the big end of town, make millions and pay nothing.

I haven’t mentioned bartering… Bartering is when some one swaps some apples they grew for some oranges or a hair cut.

I am talking about straight up normal commercial business paid for in currency that just doesn’t get recorded in a way that the person pays their fair share of tax on it.

Eg, you go into a fish and chip shop and buy $10 worth of stuff and the shop owner just puts the cash in his pocket, that’s not bartering and they aren’t paying gst.

You can never guarantee that when you spend money the gst you pay ends up making it to the government.

 

[sptrawler]

I haven’t mentioned bartering… Bartering is when some one swaps some apples they grew for some oranges or a hair cut.

I am talking about straight up normal commercial business paid for in currency that just doesn’t get recorded in a way that the person pays their fair share of tax on it.

Eg, you go into a fish and chip shop and buy $10 worth of stuff and the shop owner just puts the cash in his pocket, that’s not bartering and they aren’t paying gst.

You can never guarantee that when you spend money the gst you pay ends up making it to the government.

It's great to see you back, I love how you see things so literally. have you been on holidays?

 

[mullokintyre]

People who deal in cash need to be very careful.
The business will most likely be registered for GST, unless its a mickey Mouse outfit.
In their BAS returns, if they are claiming for significant GST inputs, without a relative GST output payment, the ATO has some very sensitive modelling software that looks at that sort of thing, and flags them for investigation or audit.
The audit look at their incomes versus their asset base and can ask a few difficult questions.
And the ATO is always right, unless you have very deep pockets.
mick

 

[over9k]

I don't have a problem with fools overseas paying grossly inflated real estate prices.
they can't take it back to their own country, and somebody here in OZ greatly benefits from their stupidity.
Mick

But one of us gets outbid and can no longer buy the house we wanted because the government just let a chinese dude buy it with dirty chinese money, who will of course overpay for it because even if it's a 10% overpayment he still cleans/keeps 90% of his ill-gotten gains.

 

[sptrawler]

People who deal in cash need to be very careful.
The business will most likely be registered for GST, unless its a mickey Mouse outfit.
In their BAS returns, if they are claiming for significant GST inputs, without a relative GST output payment, the ATO has some very sensitive modelling software that looks at that sort of thing, and flags them for investigation or audit.
The audit look at their incomes versus their asset base and can ask a few difficult questions.
And the ATO is always right, unless you have very deep pockets.
mick

Benchmarking trades has been going on for some time.

 

[Value Collector]

have you been on holidays?

Yep

 

[Value Collector]

People who deal in cash need to be very careful.
The business will most likely be registered for GST, unless its a mickey Mouse outfit.
In their BAS returns, if they are claiming for significant GST inputs, without a relative GST output payment, the ATO has some very sensitive modelling software that looks at that sort of thing, and flags them for investigation or audit.
The audit look at their incomes versus their asset base and can ask a few difficult questions.
And the ATO is always right, unless you have very deep pockets.
mick

Yep, but there is quite a wide variation in cost inputs, which means all but the most outrageous tax dodgers could easily slip under the radar especially for labour intensive businesses.

For example, say a cleaner charges $700 for each job and uses $30 worth of cleaning products, they could easily do the next 2 jobs for $1,400 cash and just write $90 off the first job. The tax office isn’t going to know the difference, because some charge more use less or charge less use more etc Same with painters, tree loppers, lawn mowers, car washers, restaurants, massage, tattooists etc etc

Secondly, they can just buy some of their cleaning products with cash and not bother writing them off if they wished to totally conceal their ruse.

 

[sptrawler]

Yep

You could have posted up some travel photos, in the' ASF Travel Photos ' thread.

 

[sptrawler]

Yep, but there is quite a wide variation in cost inputs, which means all but the most outrageous tax dodgers could easily slip under the radar especially for labour intensive businesses.

For example, say a cleaner charges $700 for each job and uses $30 worth of cleaning products, they could easily do the next 2 jobs for $1,400 cash and just write $90 off the first job. The tax office isn’t going to know the difference. Same with painters, tree loppers, lawn mowers, car washers, restaurants, massage, tattooists etc etc

Secondly, they can just buy some of their cleaning products with cash and not bother writing them off if they wished to totally conceal their ruse.

Also why you have to be careful when buying a business, I've heard of people selling Deli's having their whole family and friends buying through it before it goes on the market.
life is full of scams.

 

[sptrawler]

Well anecdotal evidence, I tend to sneak in a savoury treat occasionally, just to break up the monotony of porridge every day for lunch.
Well before we went on holidays in early Oct, my two favourite shops one in Perth and another in Mandurah, both sold meat pasties for $4.20.
When we returned in early Nov, the one in Perth has gone up to $6.50, so they have lost my business and the one in Mandurah I will check out tomorrow.
Also see the pay claims are still rolling in, I personally think inflation in Australia has a long way to run, it just depends what the ABS and RBA put in their representative baskets to work out inflation. Lucky house prices aren't included.

'Nuclear option': Union's threat to boycott paramedics' registrations over pay dispute

More than 1,500 paramedics have signed an online pledge not to renew their registrations, as negotiations stall with state government over pay disputes.

www.abc.net.au

 

[over9k]

I just paid $34 for a 6x extra cheese pizza.

Fight me.

 

[mullokintyre]

Yep, but there is quite a wide variation in cost inputs, which means all but the most outrageous tax dodgers could easily slip under the radar especially for labour intensive businesses.

For example, say a cleaner charges $700 for each job and uses $30 worth of cleaning products, they could easily do the next 2 jobs for $1,400 cash and just write $90 off the first job. The tax office isn’t going to know the difference, because some charge more use less or charge less use more etc Same with painters, tree loppers, lawn mowers, car washers, restaurants, massage, tattooists etc etc

Secondly, they can just buy some of their cleaning products with cash and not bother writing them off if they wished to totally conceal their ruse.

You obviously have never been audited by the ATO.
They demand things like diaries, phone and text records, banking details, particularly credit cards transactions, proof of purchase of every asset you own, they look at a profile of your likely expenses for living and ask how you fit against that profile.
Some years ago, I attended a day long session with the accounting group we have been working with for theirty years where a simulated audit by the ATO was conducted. Up until that day, I had no idea of the length and breadth of the powers that the ATO have, and the sort of detail they demand.
And to top it off, up front they will accuse a taxpayer of evading taxes, set a fine that immediately starts to accrue interest, and its up to the taxpayer to prove them wrong, not the other way around.
I have never been audited, and sure as hell have no desire to do so.
Mick

 

[over9k]

You obviously have never been audited by the ATO.
They demand things like diaries, phone and text records, banking details, particularly credit cards transactions, proof of purchase of every asset you own, they look at a profile of your likely expenses for living and ask how you fit against that profile.
Some years ago, I attended a day long session with the accounting group we have been working with for theirty years where a simulated audit by the ATO was conducted. Up until that day, I had no idea of the length and breadth of the powers that the ATO have, and the sort of detail they demand.
And to top it off, up front they will accuse a taxpayer of evading taxes, set a fine that immediately starts to accrue interest, and its up to the taxpayer to prove them wrong, not the other way around.
I have never been audited, and sure as hell have no desire to do so.
Mick

If there is one thing true of all governments, it is that their most reliable records are tax records.

 

[Value Collector]

You obviously have never been audited by the ATO.
They demand things like diaries, phone and text records, banking details, particularly credit cards transactions, proof of purchase of every asset you own, they look at a profile of your likely expenses for living and ask how you fit against that profile.
Some years ago, I attended a day long session with the accounting group we have been working with for theirty years where a simulated audit by the ATO was conducted. Up until that day, I had no idea of the length and breadth of the powers that the ATO have, and the sort of detail they demand.
And to top it off, up front they will accuse a taxpayer of evading taxes, set a fine that immediately starts to accrue interest, and its up to the taxpayer to prove them wrong, not the other way around.
I have never been audited, and sure as hell have no desire to do so.
Mick

No doubt the actual audit is intense, but 99.999% of people will never be audited, only the people that pop up on the ATO radar will be.

My comments were simply saying that there are a lot of business types where they could easily be hiding 50% of their income and have no chance of popping up on the radar.

I mean the ATO has no way of monitoring how many haircuts a hair dresser does each day for cash, so even one taking huge amounts of cash sales probably would not pop up on the radar.

 

[over9k]

 

[sptrawler]

Well anecdotal evidence, I tend to sneak in a savoury treat occasionally, just to break up the monotony of porridge every day for lunch.
Well before we went on holidays in early Oct, my two favourite shops one in Perth and another in Mandurah, both sold meat pasties for $4.20.
When we returned in early Nov, the one in Perth has gone up to $6.50, so they have lost my business and the one in Mandurah I will check out tomorrow.

The Mandurah ones have gone from $4.20 to $5.80.

 

[farmerge]

The Mandurah ones have gone from $4.20 to $5.80.

And to add to this tale of woes, our favourite Chinese nosh shop in Straton has gone up about $20 for the usual we have as take-away. Perhaps back to the Food Hall for a mid day lunch instead in future.

 

[over9k]

Alright so I just saw that europe has finally finished brimming basically every bit of gas storage it has so if there's going to be a bottom to the gas price it's probably about now.

 

[divs4ever]

Alright so I just saw that europe has finally finished brimming basically every bit of gas storage it has so if there's going to be a bottom to the gas price it's probably about now.

i hope so

( i hold WDS , i also hold BPT but that may only benefit from a general rise in prices across the Western economies )

 

[frugal.rock]

Look what I said 25 January this year....
Crystal clear balls.
I must be some kind of self claimed genius or something

I'm wondering where everyone is going to live?
International students enrolments considerably higher than pre pandemic levels and mass immigration.

I'm not sure we will see a much cheaper housing market, as what has been touted... probably more a consolidation moving into slightly rising again.

From where I'm sitting, we are going to see a population increase of at least 1.5% a year for the next 3 years, and that figure only includes immigration and international students. Hello...

Australia: 11% rise in new commencement predicted in 2023

Australia is set to see increased international enrolments in 2023, with expectations reckoning on overall growth of between 8% and 12%, according to marketing intelligence platform Studymove.

thepienews.com