Where does the money go

[redwing]

I would assume it is similar in Australia, in fact an Australian site linked the to the above infographic

The average consumer has a budget that is split into a large number of monthly and yearly spending.

The average consumer spends $49,638 a year on a range of necessary and desired expenditures. These expenditures come out of an annual household income of $63,091 per year on average, before taxes. The average consumer owns 1.9 vehicles, and 67 percent of them are homeowners with loans. Households average 2.5 people and 1.3 earners reside in each.

The largest expenditure of the average household is housing. This takes up an average 34.1 percent of the yearly budget of households. This is an average of $16,920 spent on housing. This amount includes $10,023 spent on shelter, $3,477 spent on public services and utilities, $984 spent on household operations, $639 spent on housekeeping supplies and 3.6 Percent spent on household furnishings and equipment.

The second largest expenditure for the average consumer is transportation. The cost of vehicles purchased is an average of $3,244 per year, making it 6.5 percent of the average budget. The cost of oil and gas for vehicles costs the average consumer $2,384 per year, for an average of 4.8 percent of the total yearly budget. Combines, the cost of vehicles and their maintenance costs consumers an average of $8,758 per year. This is a total of 17.6 percent of the yearly budget.

Another large expenditure is healthcare. The average consumer spends $2,853 on healthcare each year. Another physical necessity, food, costs consumers an average of $6,133 per year. An average of $3,465 of that is spent on food that is consumed at home, and $2,668 of it is spent on food consumed away from home. Combines, the money spent on food is 12.4 percent of the entire yearly household budget.

Insurance and pensions are important financial considerations and they cost the average consumer $5,336 per year. This is a total of 10.8 percent of the annual budget. $5,027 f this, 10.1 percent of the yearly budget, is spent on social security and pension contributions. In addition, the average consumer pays an average of $309 each year, making up 0.6 of the annual budget.

Other expenditures include a yearly average of $945 spent on education, making up 1.9 percent of the annual budget. Consumers pay an average of 3.8 percent of their annual income, $1,881, on clothing and related services. Personal care items add up to $588 per year for a total of 1.2 percent of the annual budget.

Entertainment costs $2,698 yearly, making up 5.4 percent of the average consumer’s income. Purchasing reading materials makes up 0.2 percent of the average income, or $118 per year. The average consumer spends $1,821 per year on cash contributions. This makes up 3.7 percent of the consumer’s annual income.

Alcoholic drinks cost an average of $457 per year, or 0.9 percent of the budget. Tobacco and related tobacco supplies cost an average of $323 of the average consumer’s budget, for a total of 0.7 percent of the yearly income. Miscellaneous expenses make up the remaining1.6 percent of the budget with $808 per year

Source

Tax at about 14.8% above, about the same as food & healthcare combined

 

[Andrew_A]

Interesting. Alcoholic beverage spending is 4x reading expenses

 

[boomtown]

If you take into account that I don't smoke and add the tobacco budget to the alcohol budget it's probably about right !

I don't see mobile phones and computers in there. Maybe buried in household equipment.

 

[redwing]

If you take into account that I don't smoke and add the tobacco budget to the alcohol budget it's probably about right !

I don't see mobile phones and computers in there. Maybe buried in household equipment.

I agree, it could be broken down even more

Maybe someone can find a better infographic version out there?

 

[aussierogue]

Great link

My graph looks very different

As a family we have no mortgage and have one crappy but reliable car that we spend approx 2k on per year (that incl depreciation)

We dont smoke, drink socially..

We do spend more on healthcare though - over 4k pa

aussie

 

[redwing]

Budget expenditure

Ever wondered where all the taxes the government raise actually come from ? besides your wage- and what the government actually spend your money on?

Source: Treasury budget papers 2014

Now note the following:

• Level of taxes raised from individuals compared to companies, thus making a small levy translate into a reasonably large dollar amount of taxes raised.
  
• Level of expenditure outlayed for welfare ? the age pension is largest and fastest growing portion of this.
  
• Amount raised in fuel excise will rise gradually overtime with indexation reinstated.
  
• At the Federal level we spend more on welfare than we do on health, education and defence combined.

A lot of the budget activity simply relates to tax churn: with taxpayers paying income tax and receiving welfare in return. Is this an efficient way to manage our tax system? For every dollar of tax paid directly by individuals this translates to 79 cents paid in welfare.

Link

 

[Scott No Mates]

Interesting. Alcoholic beverage spending is 4x reading expenses

Do beer goggles get included in alcohol or reading material?

 

[plusnq]

Interesting. Alcoholic beverage spending is 4x reading expenses

Well it is always dangerous being on ebay after a few beverages

 

[Ideo]

Well it is always dangerous being on ebay after a few beverages

Or the email from amazon the next morning

 

[Deltaberry]

Budget expenditure

Ever wondered where all the taxes the government raise actually come from ? besides your wage- and what the government actually spend your money on?

Source: Treasury budget papers 2014

Now note the following:

• Level of taxes raised from individuals compared to companies, thus making a small levy translate into a reasonably large dollar amount of taxes raised.
  
• Level of expenditure outlayed for welfare ? the age pension is largest and fastest growing portion of this.
  
• Amount raised in fuel excise will rise gradually overtime with indexation reinstated.
  
• At the Federal level we spend more on welfare than we do on health, education and defence combined.

A lot of the budget activity simply relates to tax churn: with taxpayers paying income tax and receiving welfare in return. Is this an efficient way to manage our tax system? For every dollar of tax paid directly by individuals this translates to 79 cents paid in welfare.

Link

This country needs a tax reform, because the moment some of the yields improve offshore I'm out of here for good. Sick of paying 48% taxes funding people who do nothing.

 

[Scott No Mates]

Sick of paying 48% taxes funding people who do nothing.

AFAIK the maximum tax rate in Oz is 45% (based on the amount over $180, 000) + 1.5% medicare levy (+ up to 1.5% extra if you pay the surcharge).

Are you on some bonus tax scheme as you're a good client of the ATO or haven't taken advantage of any of the advice available to you?

 

[plusnq]

AFAIK the maximum tax rate in Oz is 45% (based on the amount over $180, 000) + 1.5% medicare levy (+ up to 1.5% extra if you pay the surcharge).

Are you on some bonus tax scheme as you're a good client of the ATO or haven't taken advantage of any of the advice available to you?

Well that would add up to 48%. I don't know why you wouldn't pay for private health cover at that cost though.

 

[HotRod]

Well that would add up to 48%. I don't know why you wouldn't pay for private health cover at that cost though.

But not for the full $180K+

Use a tax calculator:

$180K - 32.3% tax
$200K - 34% tax
$250K - 37% tax
$300K - 40% tax
$500K - 43% tax

 

[D_One]

But not for the full $180K+

Use a tax calculator:

$180K - 32.3% tax
$200K - 34% tax
$250K - 37% tax
$300K - 40% tax
$500K - 43% tax

What is the maximum hecs bracket? Those tax rates looks a lot lower than what I'm getting slogged.

 

[Scott No Mates]

What is the maximum hecs bracket? Those tax rates looks a lot lower than what I'm getting slogged.

D_One - follow the linky: ATO Tax Tables

Note that the tax rate applicable and the effective rate are two different things.

If you are earning $200k you are not paying 45% on every cent you earn but 45% on the amount over $180k (+ medicare, HECS etc)

Regards HECS: if you earn in excess of $1,832.00/wk, you are hit with 8%

So, yes your tax rate is higher.

 

[HotRod]

What is the maximum hecs bracket? Those tax rates looks a lot lower than what I'm getting slogged.

They are effective tax rates, not your marginal rates.

I guess HECS will be the extra 2% on top of that?

 

[D_One]

D_One - follow the linky: ATO Tax Tables

Note that the tax rate applicable and the effective rate are two different things.

If you are earning $200k you are not paying 45% on every cent you earn but 45% on the amount over $180k (+ medicare, HECS etc)

Regards HECS: if you earn in excess of $1,832.00/wk, you are hit with 8%

So, yes your tax rate is higher.

Thanks guys...

That means you are always getting slogged a constant rate 8% + marginal tax rate.

If only there was free education like in Finland.

Ha well, still the best loan available. Just got to stop doing post grads.

 

[Blacky]

I find this staggering. 78% of tax paid is given out in welfare.

reminds me why I left, and won't be returning any time soon.

I said it before, that the welfare system in Australia will kill its own. People will leave, or learn to cheat the system somehow. Where is the incentive to work harder when the govt takes 30-45% off you?

Blacky

 

[Tony3008]

I find this staggering. 78% of tax paid is given out in welfare.

reminds me why I left, and won't be returning any time soon.

I said it before, that the welfare system in Australia will kill its own. People will leave, or learn to cheat the system somehow. Where is the incentive to work harder when the govt takes 30-45% off you?

Blacky

The amount paid out in welfare is 79% of income tax paid by individuals. But this amount is less than half the total tax take. According to the pie chart, social security and welfare represents about 35% of public expenditure.

 

[VYBerlinaV8]

Where's CGT in all this?