Carbon Tax Explained

[buzzlightyear]

I have received (and I am sure others would have) this summary of the Carbon Tax from Westpac this morning.

 

[Macca]

Thanks Buzz,

Objective summaries are helpful when trying to sort through the spin

 

[our obsession]

Thankyou. Appreciated.

 

[Ausprop]

summary: "this won't hurt a bit" (rrrrip)

 

[luckyone]

Thanks Buzz.

I still don't get what this tax is for though. It just seems to be penalizing the "rich" and giving it to the poor. I don't see what they're actually doing to reduce our carbon emissions. And I also don't see why we need to do anything about it anyway.

 

[Aaron_C]

It's ridiculous! I don't know how a household earning 150k+ is 'rich'?

Ah well doesn't really matter - I'm self employed so I'll let my company take my profits and I'll receive a nice refund courtesy of the low income tax offset

 

[Francesco]

It's ridiculous! I don't know how a household earning 150k+ is 'rich'?

Ah well doesn't really matter - I'm self employed so I'll let my company take my profits and I'll receive a nice refund courtesy of the low income tax offset

You may be disappointed how the current tax 'coalition' govt is poised to redistribute your expected 'benefit' of low income tax offset. There will be no LITO available unless tax free threshold of $18200 is exceeded first in 2013 tax year. Social redistribution at work.

The low income tax offset will be reduced from 2012-13 to a measly $445 (and $300 a year later) from current $1500. (http://theconversation.edu.au/carbon-tax-a-step-towards-reform-but-working-mothers-miss-out-2244). The reduction in LITO and the increase in marginal tax rates for the next two taxable higher income bands, helps to finance the 3x increase in tax-free threshold.

 

[Aaron_C]

Even if that is correct Francesco - I benefit from the increased tax-free threshold anyway so either way I am fine except for the increased utility bills.

 

[Ausprop]

how will you live if your company has all the cash?

 

[Aaron_C]

my salary?

 

[dan c]

It's ridiculous! I don't know how a household earning 150k+ is 'rich'?

Ah well doesn't really matter - I'm self employed so I'll let my company take my profits and I'll receive a nice refund courtesy of the low income tax offset

Not if it's personal services income.

 

[Vesuprop]

my salary?

Which is... taxable. To cut your income, you'd have to cut your salary, would you not?

 

[Aaron Sice]

 

[Francesco]

This won't hurt too much... bend over.

 

[Casserole Dish]

The people are angry about the carbon tax. Very angry. Politics is really getting interesting.