The tax man

trainspotter · 3 September 2009

Well, here I am again at tax time and looking down the barrel of another fine year of giving the ATO a bundle of cash. My accountant has done the right thing by the letter of the law and has made the necessary deductions as required. I do not feel any wealthier for my endeavours for some reason. Almost to the point whereby I am thinking of giving it one last Hurrah and closing everything down to a bare minimum. I employ about 26 people directly and about 43 indirectly. If I shut down so do they! The amount of regulation and paperwork is driving me insane, this is not a whinge by the way. Just an observation.

YES all you Laborites and communists out there I have kept you and your bleeding hearts and artists in the custom they have become used to but I am getting tired of feeding the masses. To tax me as much as you do will effect the overall income of Australia. If I decide to downscale then a large chunk will disappear on the income stream of middle Australia.

There is no incentive for me to place my balls in the vice and take the risks I do to be punished for my "good fortune". I would be better just to sit back and take the gravy train like everyone else. Afterall the government will provide for me ........... won't they ?

Tax rates 2008-09
Taxable income
Tax on this income

$1 – $6,000 Nil

$6,001 – $34,00 15c for each $1 over $6,000

$34,001 – $80,000 $4,200 plus 30c for each $1 over $34,000

$80,001 – $180,000 $18,000 plus 40c for each $1 over $80,000

$180,001 and over $58,000 plus 45c for each $1 over $180,000

trainspotter · 3 September 2009

30% tax rate on a company !!! Mein Gott !!!

http://www.ato.gov.au/businesses/content.asp?doc=/content/44266.htm

tech/a · 3 September 2009

Similar.
My Bass,Payroll,Personal and Company tax,not to mention Work Cover,is enough to make your eyes water.

Love it!!

knocker · 3 September 2009

Why not just sell up and retire. Its what I did. no point running a business nowdays, especially in this economic climate, and things will get worse

trainspotter · 3 September 2009

I employ people just to keep the bloody paperwork trail in line ! Where is the incentive?? Do I charge the Guvmt for being a tax collector ? Afterall I collect GST and remit on every BAS statement so therefore I am an employee under the letter of the law? It is geting ludicrous the amount of time I spend pouring over paperwork and paying accountants to keep everything up to date. 1/3 of my income and 1/3 of my time is devoted to keeping these bloody bureaucrats in a freeeking JOB !

Buckeroo · 3 September 2009

Hasn't been too bad (we'll hope not, haven't got the final notice from the accountant yet) - the government has assisted with a nice new 4x4

And I did get the unwanted pleasure of watching a lot of people spending their stimulus hand outs!

Cheers

Mr J · 3 September 2009

And that's just income tax. Plenty of other taxes out there.

the government has assisted with a nice new 4x4

In other words, other people or yourself have paid for it.

Trainspotter, as much as Aussie tax pisses you off, just be glad you're not paying 60% (or some other ridiculous amount) in Denmark etc.

I'd love to see how the Governments spend the money. Just how much is put to productive use, and how much is wasted in bureaucratic mess. And they want a pay rise .

wonderrman · 3 September 2009

retire and move overseas were the tax rates are low. live in europe, tax rates in lichtenstein are small apparently. i would sail too.

or you could live in aus for 6 months and overseas for the other 6 months, then you wouldn't be classified as resident for tax purposes - so I'm lead to believe.

w.

gooner · 3 September 2009

trainspotter said:
30% tax rate on a company !!! Mein Gott !!!

http://www.ato.gov.au/businesses/content.asp?doc=/content/44266.htm

trainspotter

Yes, but when the company pays this as dividends to you, you get the tax back as franking credits So profits of $100, tax of $30, dividends of $70, but dividends come with $30 of franking credits.

When you get the dividends, effectively you declare the full $100, but the $30 is treated as a prepayment of tax. If you earn less than $6,000 you will get the entire $30 back.

Downside, for you , given you sound like a plutocrat, is that you are probably on the top tax rate so when you get your $70 dividend the government wants $15 of it.

Buckeroo · 3 September 2009

Mr J said:
In other words, other people or yourself have paid for it.

Hence the smile, I'll be paying for it over the next few years unless I retire & let my kids pay for it - only kidding

I can though, let you in on how they spend our tax payers money - by putting plaques in every school showing everyone how good the labor political party is! It would be laughable if it wasn't so serious attempt in undermining our democracy.

Cheers

gooner · 3 September 2009

Buckeroo said:
Hence the smile, I'll be paying for it over the next few years unless I retire & let my kids pay for it - only kidding

I can though, let you in on how they spend our tax payers money - by putting plaques in every school showing everyone how good the labor political party is! It would be laughable if it wasn't so serious attempt in undermining our democracy.

Cheers

Buckeroo

Firstly, let me say that is one of the most stupidest policies that waste money that I have every seen.

Julia Gillard's sole defence (at least when i have heard her) is that she is continuing the coalition policy. And if that is the best she can do, it is obviously a very crap policy.

knocker · 3 September 2009

wonderrman said:
retire and move overseas were the tax rates are low. live in europe, tax rates in lichtenstein are small apparently. i would sail too.

or you could live in aus for 6 months and overseas for the other 6 months, then you wouldn't be classified as resident for tax purposes - so I'm lead to believe.

w.

That's what I do

Mr J · 3 September 2009

That's fine Buckeroo, as far as I'm concerned it should have been your money anyway. I would love to know the level of inefficiency and how much most are being overcharged. If I was earning serious money, I'd be quite pissed off that almost half goes to these thieves.

Buckeroo · 3 September 2009

Mr J said:
That's fine Buckeroo, as far as I'm concerned it should have been your money anyway. I would love to know the level of inefficiency and how much most are being overcharged. If I was earning serious money, I'd be quite pissed off that almost half goes to these thieves.

Mmmm, I think the only way you will find that out is by becoming a politician

Actually, I don't mind paying taxes, as long as its spent well. But as you say, the current government is not very apt in managing our taxes.

I see today their IR laws are in tatters as well - and still the general public have total & utter confidence in KRudd - beats me as to why this is.

Cheers

adobee · 3 September 2009

trainspotter said:
Well, here I am again at tax time and looking down the barrel of another fine year of giving the ATO a bundle of cash. My accountant has done the right thing by the letter of the law and has made the necessary deductions as required. I do not feel any wealthier for my endeavours for some reason. Almost to the point whereby I am thinking of giving it one last Hurrah and closing everything down to a bare minimum. I employ about 26 people directly and about 43 indirectly. If I shut down so do they! The amount of regulation and paperwork is driving me insane, this is not a whinge by the way. Just an observation.

YES all you Laborites and communists out there I have kept you and your bleeding hearts and artists in the custom they have become used to but I am getting tired of feeding the masses. To tax me as much as you do will effect the overall income of Australia. If I decide to downscale then a large chunk will disappear on the income stream of middle Australia.

There is no incentive for me to place my balls in the vice and take the risks I do to be punished for my "good fortune". I would be better just to sit back and take the gravy train like everyone else. Afterall the government will provide for me ........... won't they ?

Tax rates 2008-09
Taxable income
Tax on this income

$1 – $6,000 Nil

$6,001 – $34,00 15c for each $1 over $6,000

$34,001 – $80,000 $4,200 plus 30c for each $1 over $34,000

$80,001 – $180,000 $18,000 plus 40c for each $1 over $80,000

$180,001 and over $58,000 plus 45c for each $1 over $180,000

OHHH DAM Straight ...
You pay to the letter of the law and make a small error and get a letter for $2.78 interest you didnt declare on a bank account whilst some other prick doesnt declare any income at all !!!!!!!!

Aus tax is insane.. dont mention stamp duty on properties !!!

Small business needs a break.. every quarter I look at my account and this yeah made some money.. them pay gST, bas, payg, plus 10k+ in insurances just to protect me if some fool falls over and then... the account is again empty !!!!!!!!!!

and whats left after my taxes .. i pay $20+ a day to travel to work on private roads in NSW ... in traffic that is bumper to bumper.. on roads my taxes should own !!!!!!!!!

Amor_Fati · 3 September 2009

From memory Australia is pretty close to the middle in terms of taxation levels for OECD countries.

Singapore is very attractive, I might try to get a job there in a few years.

From Wikipedia:

Tax rates for individual residents
Chargeable annual income bracket Rate
For the first S$20,000 0%
S$20,000 - S$30,000 3.5%
S$30,000 - S$40,000 5.5%
S$40,000 - S$80,000 8.5%
S$80,000 - S$160,000 14%
S$160,000 - S$320,000 17%
S$320,000 and above 20%

Should an individual have an annual chargeable income of S$400,000, for example, his gross tax payable will be S$[(20,000 X 0%) + (10,000 X 3.5%) + (10,000 X 5.5%) + (40,000 X 8.5%) + (80,000 X 14%) + (160,000 X 17%) + (80,000 X 20%)] = S$58,700 (Average tax rate = 14.7%).

1 Singapore $ = 82c Australian
So earn $320,000 pay $47,600 tax. I could live with that.

I do not understand why Rudd and his government are borrowing so much money (that will be repaid from higher taxes) to heat up the economy that the RBA is readying itself to cool down by raising interest rates. Could anyone enlighten me?

nunthewiser · 3 September 2009

considered putting everyone on contract? . ie they have there own ABN,s and operate as individual businesses contracting to you ?........ saves a sheetload of headaches and runaround ...... there is a few bits and pieces to it but i have done it the past in that industry we spoke of i had in perth and it worked well for me .

i realise different industry etc etc but there MAY be a way out of this nightmare tax problem if one looks outside the box and sacks the lot and rehire the buggers under individual contracts and if you want to keep the cream of the crew happy keep them how they are but let the rest go subby

knocker · 4 September 2009

nunthewiser said:
considered putting everyone on contract? . ie they have there own ABN,s and operate as individual businesses contracting to you ?........ saves a sheetload of headaches and runaround ...... there is a few bits and pieces to it but i have done it the past in that industry we spoke of i had in perth and it worked well for me .

i realise different industry etc etc but there MAY be a way out of this nightmare tax problem if one looks outside the box and sacks the lot and rehire the buggers under individual contracts and if you want to keep the cream of the crew happy keep them how they are but let the rest go subby

You've been in the ring too long nunnas

Round two is about to begin

Mr J · 4 September 2009

Amor, just don't plan on buying an expensive car in Singapore. I'm sure it's one of those places with ridiculous import taxes for exotic/luxury cars.

Singapore sounds good - low tax, what I guess is great infrastructure, blending of cultures, get by on English etc. I don't think it's as expensive as Sydney either?

prawn_86 · 4 September 2009

Mr J said:
Singapore sounds good - low tax, what I guess is great infrastructure, blending of cultures, get by on English etc. I don't think it's as expensive as Sydney either?

Not sure about renting or purchasing costs of a place in SIngapore, but you can live dirt cheap there. Eat in the markets for about $4 for a huge meal, taxis are cheap, clothes etc are about 20% cheaper than Aus. Singapore travel details are also available on my forum.

The tax man

trainspotter

trainspotter

tech/a

No Ordinary Duck

knocker

trainspotter

Buckeroo

Mr J

wonderrman

gooner

Buckeroo

gooner

knocker

Mr J

Buckeroo

adobee

Amor_Fati

nunthewiser

knocker

Mr J

prawn_86

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