Tax on Bank Deposits

[sptrawler]

Well political risk can go both ways. There's nothing to guarantee the Government won't be forced to sharply cut back on the many welfare benefits that it offers to over 65s.

That's true, but going on the public outcry they faced, when they recently suggested changing the indexation, I doubt it.

Much easier to hit people with superannuation, everybody hates them. Labor did a great job of demonising people with super.

So as Bill said, spend it, you saved it, you should enjoy it.

 

[r2d2c3po]

Yep you are right it's got to come from somewhere but not from me.

I have decided to spend all my money, live it up and blow the lot so I have no money anywhere.

Then at 65 my wife and I will get a free full government pension with free medical card.
Then I won't be paying tax on any bank accounts.
I won't need to worry about lump sums on Super as I won't have any.
I will be able to travel for $2.50 a day within a 300 km radius of Sydney.
When my Chemist bill gets to $344 p/a everything else after that will be free.
I will get half price licenses and utility bills.
I won't have to pay a Refundable Accommodation Deposit of up to 550K for entry into an Aged Care Facility. (Govt. pays that for people with no money)

Yep, I'll blow my money, take cruises, eat in the best restaurants, travel all over the world and then get everything for free. Way to go..............

Or better yet become a politician, you will get much more than this and you wont have to wait till you are 65.
Do a little short selling on bank shares while you destroy the finance industry.
What a ride.

 

[Craton]

So it is all about the previous budget not getting fully passed and the fact that govt. revenue has to increase.
Joe Hockey has released his White Paper and no tax is off the table. I read this to mean that somewhere along the line we'll all be paying more in taxes.

Would Medicare up another 50bps do it?

My bet is that the GST will broaden, rise or both.

 

[Smurf1976]

My bet is that the GST will broaden, rise or both.

One of the arguments put forward against the GST at the time it was introduced is that, it was claimed, similar taxes introduced in other countries have ended up being broadened or increased in rate.

Whether or not that's true I don't know, but it was an argument put forward at the time.

 

[sptrawler]

My bet is that the GST will broaden, rise or both.

The other thing with the GST, that people forget, is that even the rich pay it.

From memory pre GST, there was a belief many wealthy individuals, were running their whole personal finances through a company.
This ended up with them paying themselves a pittance, and funding all their day to day expenses with company money, which could be offset against the business.

With the introduction of GST it didn't matter who bought it, they paid tax on it, it is difficult to dodge.

 

[Craton]

The other thing with the GST, that people forget, is that even the rich pay it.

From memory pre GST, there was a belief many wealthy individuals, were running their whole personal finances through a company.
This ended up with them paying themselves a pittance, and funding all their day to day expenses with company money, which could be offset against the business.

With the introduction of GST it didn't matter who bought it, they paid tax on it, it is difficult to dodge.

Sure sp, the GST is difficult to dodge but that's not the real issue. The issue is that our govt. needs to up its revenue to pay for our way of life. That or cut funding which the electorate is always up in arms about. Thus, the only alternative is to implement new tax regimes, modify others or a combination of measures most of which, if not all, will be unpopular.

Tax on Bank Deposits could also be seen as an effort to stimulate the economy by way of getting those savings/deposits spent instead of taxed.

I wonder too, would a portfolio of shares be considered a deposit of sorts?
Well, it is parked cashed a deposit of sorts by way of a share purchase, something akin to a term deposit. Or am I seriously off the mark on this?

Anyways, we'll know more when the Budget comes out.