Budget cut to bank interest tax

For the sake of the long term viability of our banking system the necessary thing to be doing.

So now with first home owners shackled up, foreigners told to stick it, and investors now seeing cash in the bank as most attractive Risk v Reward, just who is going to be buying these Oz Houses?

Ruddprime®™


:rolleyes:

http://www.theage.com.au/national/budget-cut-to-bank-interest-tax-20100509-ulrx.html

PETER MARTIN
May 10, 2010
A TAX cut on bank interest to as little as 18 per cent and simple ''one click'' tax returns are two reforms likely in tomorrow's federal budget, which is expected to return Australia to surplus two years earlier than previously projected.

In releasing the government's response to the Henry review a week ago, Treasurer Wayne Swan said he was ''attracted'' to its ideas for making tax time simpler and improving the incentives to save.
....
 
Designed to get people to save money. Put it into term deposits, likely with the major banks, further reduces competition.

Don't mind me, I got up too early and I'm still grumpy.
 
good move. the people who can afford to buy properties (plural) arent the ones who need encouraging to save. and you only benefit up to $20k. if it helps people save who otherwise just slosh their wages on stuff each week, good.

upside is voluntary saving (rather than spending) is one measure that helps reduce inflation, less need for RBA to press the up button.
 
this was the one diamond in the rough - should have been done YEARS ago.

Yeah but why cap it at $1000 earnt? I don't think it should be unlimited because you will have rich retirees benefiting, but why not have it for $10K earning, really give young people an incentive to save and maybe have a decent deposit when they do finally buy a house?
 
Hey Perth Investor...

"Rich Retirees" - if retirees are self funded and paid tax all their working lives then the least the government can do is give tax incentives on the cash investments, lets face it most of them will lose it in pension anyway, so the govt gets it both ways

Chris
 
Hey Perth Investor...

"Rich Retirees" - if retirees are self funded and paid tax all their working lives then the least the government can do is give tax incentives on the cash investments, lets face it most of them will lose it in pension anyway, so the govt gets it both ways

Chris

Well put - I would have thought that encouraging people to be self-funded retirees is a good thing.

Really, though, how many people can put money away in savings year in year out. Not a large proportion of today's Australia, I'd guess.
 
Hey Perth Investor...

"Rich Retirees" - if retirees are self funded and paid tax all their working lives then the least the government can do is give tax incentives on the cash investments, lets face it most of them will lose it in pension anyway, so the govt gets it both ways

Chris

AND

If they lose their funds/house in the markets (with or without the help of Storm) they are called greedy and get zero assistance. Definitely better to get burnt out by a bush fire living the dream in a rural setting.

PI, are you another Gen X/Y malcontent?
 
Yeah but why cap it at $1000 earnt? I don't think it should be unlimited because you will have rich retirees benefiting, but why not have it for $10K earning, really give young people an incentive to save and maybe have a decent deposit when they do finally buy a house?

because even if i had $100k in the bank i'd be lucky to get $1000 interest, that's why.
 
Yeah but why cap it at $1000 earnt? I don't think it should be unlimited because you will have rich retirees benefiting, but why not have it for $10K earning, really give young people an incentive to save and maybe have a decent deposit when they do finally buy a house?

there is a social question here - should the public purse be used to fund the consumption of housing anyway?

via the tax system the taxpayer already majorly subsidises housing consumption for renters. should "ownership" just remain a privilidge of those that wish to do it? afetr all we don't subsidise the purchase of your first boat.

I think this country is delaying some seriously tough taxation and equity issues
 
Perhaps I should have chosen my words more wisely :)

I'm no malcontent, Gen X/Y or otherwise :) I'm quite a happy, well adjusted Gen X (Lucky my wife doesn't read this, so you only get my opinion). And I certainly have no issue with "rich retirees", my point was this sort of tax treatment should be more about giving a leg up at the lower end, rather than helping out someone with $1M in the bank, whether they are trust fund kids or wealthy grey haired types.

It would be a very expensive exercise to have no cap, although now I think about it, most retirees would have their money sitting in super paying 15% anyway, so it probably wouldn't help them!

I'm pretty sick of middle class welfare - the type where the government taxes you, then gives it all back in different allowances and rebates, minus about 15% for their administration costs. As a middle income earner I say to the government, I don't want your money, leave me alone. Tax me less. But don't keep trying to find ways to transfer funds from one middle class person to another. Help the less fortunate, fine. But I don't think a "rich retiree" needs another tax cut, and nor do I.

Make the tax system fairer, make it simpler, sort of like what Mr Henry said. But all these big announcements which as Dan C put it, amount to $200 a year for someone that actually HAS $20K to invest in the first place, what a waste of my time.
 
Last edited:
Perhaps I should have chosen my words more wisely :)

I'm no malcontent, Gen X/Y or otherwise :) I'm quite a happy, well adjusted Gen X (Lucky my wife doesn't read this, so you only get my opinion). And I certainly have no issue with "rich retirees", my point was this sort of tax treatment should be more about giving a leg up at the lower end, rather than helping out someone with $1M in the bank, whether they are trust fund kids or wealthy grey haired types.

It would be a very expensive exercise to have no cap, although now I think about it, most retirees would have their money sitting in super paying 15% anyway, so it probably wouldn't help them!

I'm pretty sick of middle class welfare - the type where the government taxes you, then gives it all back in different allowances and rebates, minus about 15% for their administration costs. As a middle income earner I say to the government, I don't want your money, leave me alone. Tax me less. But don't keep trying to find ways to transfer funds from one middle class person to another. Help the less fortunate, fine. But I don't think a "rich retiree" needs another tax cut, and nor do I.

Make the tax system fairer, make it simpler, sort of like what Mr Henry said. But all these big announcements which as Dan C put it, amount to $200 a year for someone that actually HAS $20K to invest in the first place, what a waste of my time.

Perth Investor - kudos to you.

I am also a recipient of middle class welfare. As well as the tax refund we get from our IPs, we get about $5k pa for the various "family tax benefits" - FTBA, FTBB, others? And I have no idea why!?! After all, I don't need this money to live (but I'm not about to refuse it! ;)) and there would be many others who would be more needful than I/us.

Agree - reduce my initial tax bill, and forget about giving me this other FTB stuff!!
 
there is a social question here - should the public purse be used to fund the consumption of housing anyway?

via the tax system the taxpayer already majorly subsidises housing consumption for renters. should "ownership" just remain a privilidge of those that wish to do it? afetr all we don't subsidise the purchase of your first boat.

I think this country is delaying some seriously tough taxation and equity issues

it majorly subsidises houses for investors and first time buyers also and the tax breaks on c/g on por.

indirectly we do subsidise boat purchases with concessions to boat builders .same with the car industry .this list could go on forever .

the tax break wont make one iota difference as no enough .
personally i prefer bullion as a saving situation.
 
Top