no GST rise
It would appear that a GST rise is off the table but negative gearing and superannuation contributiions are now in the spotlight.
I heard on radio this morning that there are around 440,000 people who would be affected by negative gearing.
Money has to be found to fill the coffers so no doubt we will now have a reaction to these proposals. I wonder if much will be gained by attacking these two things.
They seem to incapable of thinking of ways to cut wasteful spending. Morrison has stated that he can give tax cuts if he increases taxes such as GST. He can't possibly be serious? GST increase is out. Negative gearing only defers the ultimate tax. Increasing PAYE tax would cost the election. The only source of increased revenue is Superannuation. I would suggest that people who are relient on Super, read up on "Genises 47". It has nothing to do with the Old Testiment. Did you know that employers of 457 & working Visa holders have to pay super for the employees even though the employees can never collect. The Government transferred $700Million of these funds, in trust, to Consolidated Revenue last year.
Hi innes
Genesis 47 is a SCARE tactic by private Retail superfunds and I am sure the Industry Superfunds will also fight it because they too have vested interests in keeping the SUPERANNUATION PRIVATE superfunds to HOLD on to the SUPERANNUATION gravy train for themselves.
Look to Singapore... the people are way, way, way better off with the government holding the superfunds than Private Money Making Enterprises!
What Genesis 47 is saying is utter propaganda, to get the poor buggers who have NO CHOICE but to put their funds into private money making enterprises and do poorly because of it (manipulation of markets by the big boys). Better to have a guaranteed super entitlement, separate from the market manipulation in the form of a government superannuation fund.
Your superannuation is a lot, lot, lot safer in Government SuperFunds which are clearly untouchable.
The consolidated Revenue TAKEN by MENZIES, was not peoples superannuation, it was govt revenue put into a special "future" account.
Propraganda and attempts to get people to "cut their own throats" and stay with providing a gravy train to PRIVATE ENTERPRISES to keep pocketing their money, is what Genesis 47 is all about.
NOW SOME SUGGESTIONS FOR SAVING MONEY...not hard at all
Super abuses by the wealthy
What the government needs to do is cut the billion dollar price of the Wealthy getting a 30% tax break by using the superannuation system to cut their taxes.
Charities running businesses
All churches and other charities that run bona fide BUSINESSES, need to pay tax on those businesses in the same was as ALL business pay taxes. All charity work and aspects remains the same. Billions of money into the coffers, overnight.
Cancelling fighter plane orders
US fighter planes have been on order for over ten (10) years and are still not 'off the ground' and undelivered. Already, other countries fighter planes are far superior to these moth ball projects. That is why Abbott decided to give this US megacorporation a new order for multi millions of dollars for even more of these moth ball fighter planes.
There you go multi millions saved by cancelling at least the last order put in by Abbott!
Negative Gearing
It is a means of ensuring that the young and a huge amount of the population can never own their own home. Just so, a minority of well to do who already own their own home can own MORE investment properties.
Negative Gearing keeps the prices of homes HIGH.
Negative Gearing gets those taxpayers who can't afford to buy their own homes to PAY for those that buy additional homes (inflating home prices along the way) and get a tax deduction for buying additional homes.
Effectively, OTHER TAXPAYERS are paying for these people to have MORE HOMES.
Education
Instead of giving 60% of TAXPAYERS funds to PRIVATE ENTERPRISE SCHOOLS, why not reduce that to the same percentage that PUBLIC schools get..... 40%). That is close on to a billion saved.
Health
Stop funding PRIVATE health and divert it into PUBLIC health.... that gives the PUBLIC health sector billions. All good.
Foreign Megacorps
Hey, this is easy.... these megacorps simply take from Australia without putting much back at all, they employ a lot less than most of the small and medium Australian business (who mostly pay their taxes). So, what about a special FLAT (gst type) TAX on revenue which they can NOT avoid.... that would be worth a few billion. I can't see any of the foreign megacorps leaving Australia when they make so much money out of us... ie. Apple, Microsoft, Dell, etc, etc.
Anyway, that is my contribution to some savings which would not affect the economy but would make more money available for the govt to provide adequate services and benefits and infrastructure to the people who contribute the most money into the coffers!!!
WHAT ABOUT ANYONE ELSE, CAN YOU ADD TO MY BUDGET!!!.... go on, I know you can do better that above.
OW! ONE FINAL THING.... DON'T GET ROPED IN BY "We will not introduce a GST" because as soon as you elect the Libs at the next election and the Libs get control of the Senate (Palmer's Party will leave a big hole for the Libs to fill), the LIBS will introduce a 15% GST on EVERYTHING which means a definite, without doubt $2500 extra cost (plus for many people), per person, per year.
That is very interesting about the super paid by employers on behalf of employees who will never be allowed to collect.
I have done a bit of a search and it appears that they " can" apply for a refund if they meet certain criteria. Information on this can be found on the ATO web site. www.ato.gov.au
Maybe many did not know they could do this and this is why the money eventually went to consolidated revenue??
Hi Radish (WA)
I believe it is very hot in WA, hope you are keeping cool and drinking lots of water!
Re: the ATO super .... it is a last ditch thing when the employer doesn't know what to do with superfunds owed to an employee that has left or refuses to nominate a super fund, etc, etc, etc. It is where all the bits and pieces go and YES, anyone who has super that has been paid into this ATO super can get their money out by going through the normal steps of ID and PROOF which normally is not that hard but time consuming and annoying. The whole concept of this fund is not to steal money but to ensure it doesn't disappear entirely into PRIVATE POCKETS of the superfunds.
So, Radish, good on you for detailing that aspect.
Everyone SHOULD know they can get their funds out of the ATO super BUT it is because of the our megacorp MEDIA who have been feeding the people propaganda about this fund, that they don't know about it. The ATO have put out notices but it seems that the Media have polluted the population with the concept that once in the ATO it is lost! The reason for the "outcry" is that PRIVATE SUPER made multi-millions from these sort of funds by eating them away with fees and charges. The "outcry" was from the greedy big boys losing their 'easy' money.
I think you are very correct Radish. I follow Government progress a lot more than most, & I only fell over this a few weeks ago. My local Federal Member was not aware of it.
When I worked in London for 2 years money was taken out of my salary . Never knew I could apply to get my taxes back.
In fact it would never have crossed my mind. Young and stupid lol
Radish (WA)
No, just young and full of life.... not worrying about the little things that interfere with living.
Did you like London way back then? When I was 18 - a very long time ago, I stayed there for a short time before going on to Ireland but loved it.
The 2014 Federal budget which cut $80 billion worth of government funding from education and healthcare over the next decade was designed to get the states to instigate a raise in the GST.
This of course would leave the commonwealth government as not looking like being the one who wished to raise taxes.
Budgets involve income and expenditure and it seems our treasurer does not understand this.
Maybe finally they will look at the super concessions and negative gearing as a means of extra revenue which they seemed to shy away from earlier.
But make no mistake, which ever options they look at will involve more income (tax) and as usual the ones hardest hit will be the less wealthy.
Gerry
Spot on comment! Agree with every word.
Good points there from everyone, and thanks Radish for that info --I never had super, but VERY interesting for those that do
PlanB
I can only pop in occasionally these days but it is good to see your comments.
As Turnbull hasn't changed any of Abbott's corporate wishlist policies, do you think that he is speaking with a 'forked tongue' and simply getting the subject of GST off the front page so to speak and when the next election is won with Turnbull's warm fuzzies, that they will simply bring in the whole shebang ..... 15% GST on everything! If they get a big vote in the Senate, I really think it will be a sure thing.
Same with the TPP which in my opinion, is treasonous and very, very damaging for Australia, although very lucrative for foreign (mainly USA) megacorporations.
I am really upset by the continued denigration of CSIRO which is a definite MONEY MAKER and real innovation to Australia and its people .... I wonder if they are going to flog the (CSIRO) WiFi patent to a USA corporation!!
Now, we have Turnbull wanting to privatise the administration of Medicare.... probably to one of the big megacorps that slink around in the background of all major countries.... ie. SERCO.
It is getting very depressing.
Good to see your comments when I come on here for my short interludes.
Miss seeing your comments Muss,
I have always said Turnbull is the smiling assassin and is far too smart for the average person, he is proving to be just another form of Abbott but with a brain
Hmmm.... brainy cunning is perhaps more worrying than brainless cunning but I still prefer Turnbull to Abbott. He will wait until he is re-elected and then we'll get the rise in GST. As usual they will say they have a mandate when they don't.
I feel really angry about the way the LNP is wanting to mess with Medicare. Why on earth would they want to privatise and outsource admin, even possibly to an overseas company thus denying employment to our own people? I do not feel at all safe with this government. I don't think they know what they are doing.
i agree with your comments planB, robiconda and mussitate. turnbull is just another corporate puppet - and his past record with the corrupt bank of goldman sachs is no recommendation either.
Robi yes you are dead right Turnbull is rat cunning, yes I also prefere Turbull to Abbott, because Abbott was plain stupid and a real danger -- yes if they are re elected God help us as they will do whatever they choose with their imagined "mandate" They are all heartless and none at all have any empathy or idea as to how the normal bloke has to live and battle.
They want to take everything off the working man, ie weekend rates etc.
The Libs under Howard slashed income tax rates to buy votes, not for any valid economic reasons. Now the current Liberal government is broke.
Just reverse the Howard tax cuts Malcom, and all will be fixed.
I think that negative gearing is a great initiative to enable mums and dads to invest, particularly in real estate to build wealth for their retirement. Like all such initiatives however, there are the already wealthy and corporations that will happily jump on the bandwagon and reap huge benefits. Rather than remove negative gearing altogether (and make rental accommodation even more scarce and expensive), a better alternative would be to place limits or a cap on the amount that can be claimed.