Latest from the ABC on Negative Gearing

Angel said:
http://www.abc.net.au/news/2014-09-24/janda-the-myth-of-mum-and-dad-negative-gearers/5766724

I could tear this article to pieces
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The article seem fairly factual, not much to tear apart. High income earners are clearing getting the greatest benefit from negative gearing but their adjusted and reported taxable incomes distort this reality.

Angel said:
http://www.propertyobserver.com.au/...ences-far-beyond-an-investors-tax-return.html
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This is the article which can be torn apart, spouting all the old NG myths, full of complete rubbish, laughable really.

It?s good to see however pressure against NG building, it will go one day, not soon enough in my opinion, it has proven to be a disastrous policy.
 
I detect a conspiracy theory over property investors.

All this negativity on investors sounds like sour grapes. Yes, I am a lefty but I think these tree huggers shoud get a job, save a deposit and buy some property where they can afford such as rural Australia or Tassy.

If they keep this up the housing boom won't die a natural death....it will be slaughtered prematurely. Then what will the banks do? And what about the loss of duty revenue for the states?

Please don't kill the housing boom!
 
But.... I think this is the norm for investors in the main, its comforting to believe that property will look after you and do its thing, what is it every 7-10 years it will double. Too bad you are bleeding, she'll be fine mate, don't worry about lifestyle today.
 
I like listening to ABC radio, and they do have some good entertainment such as Eggheads and QI on the TV. At least their news reports have the policy of requiring 2 separate credible sources before they broadcast it, though I sense this has been slipping lately.

Not to say I think they're great, just the least worst of the alternatives
 
The article seem fairly factual, not much to tear apart. High income earners are clearing getting the greatest benefit from negative gearing but their adjusted and reported taxable incomes distort this reality.
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Sorry, but I have to jump in here.

Targetting the high income earners smacks of "Robin Hoodism".

In my view - if we are all serious about what we do PI for - we are in it to get rich/financially independent/retire without a pension/retire younger/retire rich...what ever you want to label it.

Therefore; we all want to be like the rich person who has lots of dough (someone will no doubt chime in with; "No; I'm only in it for the activity/hobby/interest" and other BS).

So, assuming we are all in it to get rich; why the slagging of the (rich) folks who benefit the most?

High income earners - for the most part - are in that position because they have put in lots of sacrifice and hard work in various areas of their life - study at school, long hours in their jobs, and/or both etc.

You don't get to the top 5% of any endeavour without doing lots more than the other 95% usually.

They pay the most PAYE tax, they get the least help from the Gubbmint via handouts...they pay their way quite well, thankyou very much.

Good luck to them I say; and they deserve the rewards for the hard work and sacrifice.

Some might throw in that business owners get too much of a tax break too - let me tell you that it is a lot harder to run a business than to be a PAYE - way more responsibility, way more risk, often way more hours and so on.

I grew up poor, only ever earned an above-average wage for a small number of the years of my work so far, and have eventually found a bit of financial success through PI (some of it through lots of hardwork and hours doing renovations, while others were still asleep, or out on the fishing boat, etc).

The whole time I have been in the property game (since 1985) NG has been there (except the little period when they took it away; but I didn't even know about it then), and it hasn't stopped me from getting ahead of the average punter - and I've stuffed up a number of times in various ways.

From my perspective; NG hasn't affected the property markets or cycles at all (other than when it was taken away)...it just keeps on ticking over.

NG is there to encourage EVERYONE to take control of their future and not end up a miserable pensioner..the Gubbmint don't want that and I'm sure neither do any of us.

The recent crop of younger buyers will see NG as a curse - just like the previous younger generation of buyers did, etc.

Until you are in the game and thus develop the mindset shift; it is hard to think that NG is ok.

So, let's all stop being; small people, tall-poppy syndrome types and victims - and start thinking like rich people.
 
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BayView said:
High income earners - for the most part - are in that position because they have put in lots of sacrifice and hard work in various areas of their life - study at school, long hours in their jobs, and/or both etc.

You don't get to the top 5% of any endeavour without doing lots more than the other 95% usually.

.
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Bayview, you need to be disabused of that notion. The wealthiest in this country pay FAR less tax than you or I pay. They do not necessarily work harder or sacrifice more. Believe me, the top five per cent do not do more than then other 95 per cent.
 
property_girl said:
Bayview, you need to be disabused of that notion. The wealthiest in this country pay FAR less tax than you or I pay. They do not necessarily work harder or sacrifice more. Believe me, the top five per cent do not do more than then other 95 per cent.
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actually the top 2% of income earners in this country pay 26% of the income tax take, bernard salt did an article last week entitled "rich problem too taxing for me" which had stats etc. it would be too common for me to quote something from the australian but the accuracy in stats seemed to be there

at the very very top (eg billionaires etc) there are certainly cases of people not paying their fair share (or even companies like apple and google with their transfer pricing schemes) but by and large the rich more than pay their fair share in this country

i remember reading that unless a household earns over $80k or so a year they actually cost the government more in services etc than they contribute in tax so think of how much of the population that is a % of. my figure could be out slihtly but $80k rings a bell.
 
Anyone is naive to believe that a very wealthy person pays tax. It is understandable they do not want this to be public knowledge. And, as most of the media is controlled by the wealthy, that information is unlikely to be advertised.

http://www.smh.com.au/comment/budget-pain-not-for-millionaires-who-pay-no-tax-20140512-zr9o3.html


The latest tax statistics show 75 ultra-high-earning Australians paid no tax at all in 2011-12. Zero. Zip.

Each earned more than $1 million from investments or wages. Between them they made $195 million, an average of $2.6 million each.

The fortunate 75 paid no income tax, no Medicare levy and no Medicare surcharge, even though 60 of them had private health insurance.

The reason? They managed to cut their combined taxable incomes to $82. That?s right, $1.10 each
 
property_girl said:
Bayview, you need to be disabused of that notion. The wealthiest in this country pay FAR less tax than you or I pay. They do not necessarily work harder or sacrifice more. Believe me, the top five per cent do not do more than then other 95 per cent.
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They pay far less a percentage than the PAYE worker that's true.

I had this argument with a lefty-socialist nurse when I worked in the ICU - she was slagging off Bill Gates and what a disgrace it was etc how little tax he paid.

I think at that time his tax bill was over $1mill (or was it $100mill?) per year - that's per year, folks.

I said to her; "How many years of work will it take for you to generate that much revenue for the State/Country?"

So, as I said; don't begrudge the pointy-end from their just rewards, and I think you'll find that while the percentage is lower; the total dollars will blast any of us out of the water.

If we don't like it, we can all go out and start or buy a business and enjoy the perks that the Gubbmint have put in place for us.

Plus; the Bill Gates of the world are donating a portion of their taxable income to charity (which lessens their tax liability), so they are doing a lot for the world in other ways that you and I can't.
 
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