The state of the economy at the street level

[sptrawler]

taxes on 'unrealized super gains ' , bail-in laws .and several others events have given the boomers a real jolt ( if not extra risk of heart failure )

sadly i saw much of the 'emergency measures ' coming before 2019 , and took some preemptive strategy decisions

As far as I know that hasn't been through the mill yet and if one takes into account that unrealised capital gains would no doubt have to be weighed against capital losses, it will be just another brain fart that backfires.
The industry super funds would have to treated the same as the SMSF, or else it will be just another election losing implosion, so take any of the banks which most SMSF's have exposure too, they with the exception of CBA have gone nowhere in 10 years.
So I think it will be just another around the S bend for the Govt, time will tell.
The sooner these old politicians, who are affiliated with the old Commonwealth politicians pension scheme pass on the better IMO.
Way too many politicians, attached at the hip with vested interests, on both sides of politics. IMO

 

[divs4ever]

wow . resident genius, before 2019 ...Covid too?

well i probably had Covid on Xmas Day 2019 , but there were no test kits in Australia and the GP was on holidays , and Queensland had crucial by-elections to win in March 2020

but they have been messing with bio-weapons for over a decade , why do you think Russia , China and the West all had research teams in Africa taking samples of Ebola , aren't you glad they chose 'the granny-killer' over Ebola or even Anthrax , a bio-weapon by any other name is still a bio-weapon and whether it came from a lab or not, the disease was weaponized by governments all over the world for their own personal agendas

 

[divs4ever]

As far as I know that hasn't been through the mill yet and if one takes into account that unrealised capital gains would no doubt have to be weighed against capital losses, it will be just another brain fart that backfires.
The industry super funds would have to treated the same as the SMSF, or else it will be just another election losing implosion, so take any of the banks which most SMSF's have exposure too, they with the exception of CBA have gone nowhere in 10 years.
So I think it will be just another around the S bend for the Govt, time will tell.
The sooner these old politicians, who are affiliated with the old Commonwealth politicians pension scheme pass on the better IMO.
Way too many politicians, attached at the hip with vested interests, on both sides of politics. IMO

the idea of taxing unrealized gains , irrespective of whether it is implemented or not , should crush any faith an investor has in any government , somewhere along the line they will try again until they succeed , they start with 'the mega-rich , but won't stop there

 

[sptrawler]

the idea of taxing unrealized gains , irrespective of whether it is implemented or not , should crush any faith an investor has in any government , somewhere along the line they will try again until they succeed , they start with 'the mega-rich , but won't stop there

Well it would be nice to be able to make decisions as easily as that, but as can be seen by the current Government and I'm not saying it is all their fault, but we have already had a 5% drop in living standards in 12 months mainly due to immigration.
When you consider that the current Government criticised the last Govt for suggesting allowing 170,000 immigrants, it shows to me that you have to have a longer term plan, rather than reacting to what Govt's and oppositions say, as may very well be completely different to what they actually do.
Taxing unrealised capital gains on small super balances, will just drive more people onto the pension and then all the welfare perks that come with it, IMO it would be stupid.
Then you have the issue of, are they also going to do the same to industry funds and if they don't it is another election losing brain fart.
So I tend to have a plan and stick to the plan, I won't end up rich, but I wont end up on the pension, well that's the plan.

 

[divs4ever]

Well it would be nice to be able to make decisions as easily as that, but as can be seen by the current Government and I'm not saying it is all their fault, but we have already had a 5% drop in living standards in 12 months mainly due to immigration.
When you consider that the current Government criticised the last Govt for suggesting allowing 170,000 immigrants, it shows to me that you have to have a longer term plan, rather than reacting to what Govt's and oppositions say, as may very well be completely different to what they actually do.
Taxing unrealised capital gains on small super balances, will just drive more people onto the pension and then all the welfare perks that come with it, IMO it would be stupid.
Then you have the issue of, are they also going to do the same to industry funds and if they don't it is another election losing brain fart.
So I tend to have a plan and stick to the plan, I won't end up rich, but I wont end up on the pension, well that's the plan.

well i am on a pension and strongly suspect many ASF members will not get the choice of accepting a pension ( unless former politicians or senior government employees because they get access to the Future Fund ) in fact should i live another 10 years , i may be squeezed off a pension anyway ( that is why i tried to create a long-term income source for my future in 2010 )

i could see some of the shenanigans in the formal super funds , the trends of meddling into SMSFs

so one lot lose the next election will the new lot reverse the previous decisions ( or will they try to put lipstick on a rejected pig )

and well the migration is sold as 'bringing in skilled workers ' and here we are it seems half our 'educated migrants ' are driving taxis/Uber or working as security guards because they have 'clean records ' in Australia

and this is not the fault of the migrants but a legacy of excessive government policies and regulations

 

[mullokintyre]

As if the rapidly increasing housing loan repayments were not enough to make life difficult for the middle class, along comes this.
Mick

 

[farmerge]

As if the rapidly increasing housing loan repayments were not enough to make life difficult for the middle class, along comes this.
Mick

View attachment 165593

I don't think that the powers that be really give a toss how many families and small businesses will go under. Perhaps if the now proven useless Federal Labour Government got its act together and started pursuing the multi nationals and big corportions and made them pay their fair share of tax then the scenario may be a tad different.

 

[Dona Ferentes]

costs going higher but have pulled back a bit ... this applies for domestic projects as well as industrial and infrastructure.
.
Structural steel, a product reflecting global market conditions, cost about $5000 a tonne for supply, fabrication and erection in early 2020, according to Texco figures based on its own projects. The cost surged to $8000 by mid-2022 but has since fallen back to about $7000.


Over the same period, concrete, a product more subject to local market dynamics, leaped from about $84 per installed on-site square metre in early 2020 to $130 in mid-2023. That had since come back 4 per cent to $125, reflecting the lower cost of the steel reinforcement in floor slabs.

 

[Dona Ferentes]

Government spending has continued to grow through out-of-control programs such as the National Disability Insurance Scheme that new research suggests financially incentivises higher diagnoses of childhood autism.

l.....
ANU doctoral research found the growth in estimates of autism in children is steeper in Australia than in other countries, including the United States, Canada and the United Kingdom.

It also showed Australia has some of the highest prevalence rates in the world, among various studies. The studies involved different age groups looked at over time, but collated together it suggested Australia’s prevalence is around double that of Canada, 1.6 times the US and around 2.5 times higher than the United Kingdom.


“Incentives in government policy, specifically the NDIS, is the key factor unique to the Australian context and potentially explains the additional growth in Australian prevalence,” writes the study’s author, actuary Maathu Ranjan.

 

[SirRumpole]

The stage 3 tax cuts are a looming issue again.

This article analyses their effects and concludes that they are targetted at the wrong people and will do nothing for the average worker.

We could make most Australians richer and still save billions — it's not too late to fix the stage 3 tax cuts

What if the government kept the stage 3 tax cuts, but reoriented them to Australians who actually need them, asks Peter Martin.

www.abc.net.au

 

[Belli]

The stage 3 tax cuts are a looming issue again.

This article analyses their effects and concludes that they are targetted at the wrong people and will do nothing for the average worker.

Just some numbers:

 

[investtrader]

"Average earners will lose, while the rich get thousands"​

That is a quote from the above article. These type of headlines are totally rubbish. If you earn 200K you currently pay 61,000 Tax. 61,000 bloody dollars!! That is obscene.
Both my adult children earn more than that. But, they have and do work incredibly hard in very demanding and responsible careers. They have multiple degrees and have sacrificed a lot to get to where they are. At times they work 70 hour weeks. After stage 3 the tax is still $52,000. They contribute this much each year which goes to paying for all of the free government handouts most people get. A pay rise gets taxed at basically half of each additional dollar.
Someone earning $60,000 pays $9,000 tax. I know which situation seems unfair to me.

 

[wayneL]

"Average earners will lose, while the rich get thousands"​

That is a quote from the above article. These type of headlines are totally rubbish. If you earn 200K you currently pay 61,000 Tax. 61,000 bloody dollars!! That is obscene.
Both my adult children earn more than that. But, they have and do work incredibly hard in very demanding and responsible careers. They have multiple degrees and have sacrificed a lot to get to where they are. At times they work 70 hour weeks. After stage 3 the tax is still $52,000. They contribute this much each year which goes to paying for all of the free government handouts most people get. A pay rise gets taxed at basically half of each additional dollar.
Someone earning $60,000 pays $9,000 tax. I know which situation seems unfair to me.

Yeah, and that's only income tax. Then there is GST, fuel excise, luxury car tax and other import duties, stamp duty, capital gains tax (and inflation, the hidden tax), etc etc.

Worth noting that these are all taxation upon already taxed dollars and mostly regressive affecting lower income levels disproportionally.

 

[Belli]

Yes but also include Div293 arrangements for superannuation and, if single, no private health insurance rebate.

For those who are working to obtain that level of income, it is a large impost. For those who are not working, such as myself, it isn't a great hardship in my view.

 

[Belli]

Looking at tax from the other side of the ledger. Some big money in those concessions which the Gov views as revenue forgone.

2022-23 Tax Expenditures and Insights Statement | Treasury.gov.au

The Tax Expenditures and Insights Statement (TEIS) provides estimates of the revenue forgone from tax expenditures, along with distributional analysis on large tax expenditures and commonly utilised features of the tax system. Transparent reporting of tax expenditures and other aspects of the...

treasury.gov.au

 

[divs4ever]

Yeah, and that's only income tax. Then there is GST, fuel excise, luxury car tax and other import duties, stamp duty, capital gains tax (and inflation, the hidden tax), etc etc.

Worth noting that these are all taxation upon already taxed dollars and mostly regressive affecting lower income levels disproportionally.

YEP !

and the lower income citizens keep on voting them back in ( because Australia doesn't have many multi-billionaires )

but it is all about a 'fairer taxation regime ' ( which is rarely the actual outcome )

 

[Belli]

Depending on your perspective, the current tax system is unfair in a number of ways. A single income household on $100k receives less cash in hand than a dual income household receiving $100k ($50k each) due to the availability of two tax-free thresholds compared with one. The single income household is out by $10k pa in that example yet they may have the same after-tax costs such as rates, etc.

So, yes, anomalies can be found if you look hard enough.

 

[wayneL]

So, yes, anomalies can be found if you look hard enough.

The greatest anomoly is the ridiculous level of government spending on vanity projects, a morbidly obese and inefficient bureaucracy and electoral bribery/pork barreling.

 

[SirRumpole]

a morbidly obese and inefficient bureaucracy

As opposed to a corrupt bunch of external consultants ?

 

[Belli]

Hmm, a drift from taxation law to the high horse.