2015-2016 Budget

[Ed Barton]

"People from overseas coming to Australia on a working holiday will no longer be eligible for the $18,000 tax free threshold, and instead have to pay tax at 32.5 per cent on every dollar they earn up to $80,000."

Thats a bit rough.

It's rough because these taxpayers are generally young and generally don't use or qualify for the expensive parts of the feds expenditure - childcare, welfare, education, health and aged care.

 

[skuzy]

My business needs some new iPads.

bugger the iPads.. get something worth $20k

 

[VYBerlinaV8]

"People from overseas coming to Australia on a working holiday will no longer be eligible for the $18,000 tax free threshold, and instead have to pay tax at 32.5 per cent on every dollar they earn up to $80,000."

Thats a bit rough.

It's rough because these taxpayers are generally young and generally don't use or qualify for the expensive parts of the feds expenditure - childcare, welfare, education, health and aged care.

They are an easy target, and can't really complain. They're also not the first priority for Australian support.

 

[Strannik]

bugger the iPads.. get something worth $20k

like a new car

 

[Brady]

"People from overseas coming to Australia on a working holiday will no longer be eligible for the $18,000 tax free threshold, and instead have to pay tax at 32.5 per cent on every dollar they earn up to $80,000."

Thats a bit rough.

It's rough because these taxpayers are generally young and generally don't use or qualify for the expensive parts of the feds expenditure - childcare, welfare, education, health and aged care.

Don't have an issue with this. They're only here for a short period of time, why shouldn't they have to pay tax. Australian's are more than likely going to stay and at some point likely to move into a higher bracket which will result in tax being paid.

 

[Big Will]

"People from overseas coming to Australia on a working holiday will no longer be eligible for the $18,000 tax free threshold, and instead have to pay tax at 32.5 per cent on every dollar they earn up to $80,000."

Thats a bit rough.

It's rough because these taxpayers are generally young and generally don't use or qualify for the expensive parts of the feds expenditure - childcare, welfare, education, health and aged care.

They use our roads don't they and other infrastructure? You are earning money why shouldn't you help pay your way.

Either tax them or if they don't like it then it will create more jobs for young Australians. I would think it is a bit tough on an Australian as they are just starting out and will eventually pay tax.

 

[BayView]

so the net result is more debt and a record deficit.

i wonder how lib supporters will spin that

The deficit cannot be decreased under current circumstances.

Iron ore slump/Mining Boom end has put and end to that fairytale.

The only thing the Libs can achieve currently is to decrease the % of debt increase of GDP.

They are doing that.

In other words; the debt is still increasing; just at a slower rate.

What is the 20k business deduction?

Cannot see the wisdom of this one. I know the idea is to stimulate the (small) business sector and therefore create more jobs...

But seriously; a $20k tax deduction is not enough to consider a new staff member for anyone, and it doesn't guarantee an increase in turnover.

It does translate to a decrease in the Company's tax bill, which translates to more profit to the Company, but I can promise you that this will be directed straight back to the Directors as profit distributions through their trust, etc.

At least; that's where mine would be going (if I had a profit to distribute ).

What needs to occur is for measures to be introduced to compel Aussie consumers to buy within our shores, and to encourage them to buy at all.

 

[sanj]

bugger the iPads.. get something worth $20k

I already have heard of some bar operators wanting to upgrade ice machines etc and other equipment so looks like this is going to be a popular one. A lot of businesses will be going out and upgrading

 

[charttv]

a $20k tax deduction is not enough to consider a new staff member for anyone, and it doesn't guarantee an increase in turnover.

agreed. but what of the multiplier effect of businesses going out and spending more on plant/equipment, etc? Keeps sales reps in the job, support technicians, delivery drivers, import agents, etc.

 

[Brian84]

I have a 15k tax bill I need to pay, does this mean the 20k for small businesses will pay that bill for me.

Does that mean if I buy something for 20k then I will get 100% of the purchase price back at tax time?

I'm not sure how this kind of thing works.

 

[The Dark Knight]

like a new car

So is this 20k business deduction available this financial year? Does this mean I dont have to depreciate my equipment

 

[sanj]

I have a 15k tax bill I need to pay, does this mean the 20k for small businesses will pay that bill for me.

Does that mean if I buy something for 20k then I will get 100% of the purchase price back at tax time?

I'm not sure how this kind of thing works.

I haven't looked at it in detail but at first glance it looks like any capital expenditure for the business up to 20k can be claimed as an expense in that year instead of needing to depreciate it over a number of years. It isn't meant to directly create jobs for the business using that deduction but should see wider benefits as businesses upgrade lot of their equipment


Not sure if it's 20k total or up to 20k for each item.

 

[skater]

Don't quote my figures, because I'm only going on memory of what I saw on TV last night but.....

$24 billion raised by clamping down on the 'ri?h' aged pensioners

$35 Billion to be paid out in more middle class welfare.

Now, I'm all for clamping down on welfare, but seriously, I think the cut off for any aged pension was something like $823k in assets outside the family home. So....ONE (or less) Sydney property. OUCH!!!! It won't affect me, because we were well over the original cut-off, but I see that as a bit unfair.

I'd like to see less middle class welfare & get tougher on dole & single parents. I have no issue on the genuine cases, or on payments for the disabled, but heck, there are a lot of people rorting the system, and getting away with it.

 

[charttv]

It looks like accountants are going to be busy answering a lot of questions over the coming weeks judging from this thread

 

[sanj]

Rorting of any kind should be clamped down on with stiff penalties, agree with you there.

Re the asset test, 820k outside the family home seems more than reasonable to me. If you're working of the assumption that a family home is in that 820k you're talking about someone being able toaccess pension while having a 1.6m net worth, that's silly imo.

No one with that kind of money should be relying on a pension, the country cannot afford it

 

[cimbom]

It doesn't make financial sense for many parents to head back to work after a kid (sub one year olds cost over $140/day in the CBD), by the time you pay for parking, clothes, meals and loss of quality of life (by not being at home) you are well behind.

Not really. If you choose to drive into and park in the city and have an expensive take away lunch every day then that's your problem. I'm female and the only actual cost for me really is a weekly bus fare - a grand total of about $28. The clothes are similar to what I'd wear when going out anyway and I bring lunch from home most days.

Also, this "financial sense" when it comes to women working is ridiculous and sexist. Child care is a shared expense (and a very temporary one at that) just like the woman working and earning an income is of shared benefit to the family. I bet many men would be very grateful for this extra income if they were to lose their jobs which isn't exactly a rare occurence these days. This doesn't even take into account the extra benefits such as remaining in the workforce and being able to continue advancing your career rather than trying to pick up where you left off years ago.

 

[D.T.]

Brian
It's encouraging businesses to spend. Businesses spending is great for the economy. Previously, items of this nature had to be depreciated over a number of years, but now are deductible in one shot. It isn't a once off, it's as much as you want.

Businesses are already considering the things they could buy or upgrade. This means a direct improvement in their own business, but also revenue for the place they brought it from, staff to operate it, service it, etc. In theory, those people also do some spending and snowball effect is that economy is healthy again.

Contrast this to the unimaginative bunch who gave everyone $900. Goes no where near as far as the above. Most of it probably didn't even end up back in the Australian economy.

 

[cimbom]

Now, I'm all for clamping down on welfare, but seriously, I think the cut off for any aged pension was something like $823k in assets outside the family home. So....ONE (or less) Sydney property. OUCH!!!! It won't affect me, because we were well over the original cut-off, but I see that as a bit unfair.

I'd like to see less middle class welfare & get tougher on dole & single parents.

So you support paying welfare to a pensioner who is a millionaire (which is what assets a bit over 823k makes you) but low income single mothers should get nothing?

 

[jerrybee]

Don't have an issue with this. They're only here for a short period of time, why shouldn't they have to pay tax. Australian's are more than likely going to stay and at some point likely to move into a higher bracket which will result in tax being paid.

Agree 100%

 

[jerrybee]

Is this 20k just for this FY, or is it every year until they stop it? If it's every year I won't be in a mad rush to bring forward some expenses from next year. Otherwise it's shopping time!