Medicare Levy Surchage
The Mrs has now gone full time and on top of being raped with child care fees for 3 kids which makes it almost not worthwhile sometimes it now also appears that we may creep over the threshold by $1000-2000 for the Medicare Levy Surchage (MLS) depending on how much overtime I take on.
There is no sliding scale with this surchage you literally pay it if you go even $1 over the threshold so the govt is basically giving me 5 choices:
1) take out private hospital cover as cheaply as I can find it
2) take on less overtime this year to stay under the threshold
3) maintain the same level of income but reduce my taxable income through salary sacrifice to stay under the threshold
4) push the envelope with deductions at tax time to to stay under the threshold
5) pay an extra 1% tax in the form of the MLS
I know it's a good problem to have but what a fucking joke
/rant
Officially off the Pies bandwagon
Rob H
Posts: 5806
Date Joined: 18/01/12
Welcome to what everyone else
Welcome to what everyone else deals with!
Just check on the salary sacrifice, some deductions etc are added back on to your income for the purpose of Centrelink and other similar items.
Negative gearing also I believe
Look at it the other way, Im guessing I earn about the same as you and your missus.
So I also get hit with the surchase above.
On top of that because my missus is a stay at home mum not only do I pay about 50% more tax on same household income as you but we can also only sacrifice half the superannuation you can.
Give a man a mask, and he'll show you his true face...
The older you get the more you realize that no one has a f++king clue what they're doing.
Everyone's just winging it.
VIC DORY
Posts: 308
Date Joined: 28/05/15
You can get private health
You can get private health cover for less than the cost of the Medicare levy surcharge, it's a no brainer really. I've never understood why people don't get it when you have pay the surcharge anyway.
In the last 2 years I've seen two grandfathers battle cancer, one private and one public, be f$&ked if I'd ever want to rely on the public health system.
Jackfrost80
Posts: 8148
Date Joined: 07/05/12
My issue is that I will most
My issue is that I will most likely be so close to the threshold that I can alter my income to stay just under the threshold and pay $0 MLS.
Say for example I know 3 weeks out from June 30 that I calculate that we are going to go $1000 over the threshold giving me a MSL of $1835 then all I'd have to do would take approx 3 days of unpaid leave and go fishing and I save myself $850 and get to go fishing for 3 days.
Officially off the Pies bandwagon
Dale
Posts: 7930
Date Joined: 13/09/05
I had to get some sort of private health cover, the nature of my job always sees me paying 8-10k more in taxes than what's needed and I like to get that back, but without the private health cover, I lose a lot of that tax, so it's a no brainer for me.
"Just because you are a Character, Doesn't mean you have Character."
Mr Wolf
Rob H
Posts: 5806
Date Joined: 18/01/12
for a moment I thought this was a Petermac post
Jeez Frosty, your not going to be the new Petermac are ya
http://www.fishwrecked.com/forum/i-owe-tax-dept
http://fishwrecked.com/forum/self-funded
Give a man a mask, and he'll show you his true face...
The older you get the more you realize that no one has a f++king clue what they're doing.
Everyone's just winging it.
Jackfrost80
Posts: 8148
Date Joined: 07/05/12
Dear God no...My jab, jab,
Dear God no...
My jab, jab, cross combo is far inferior to Pete's
Everyone loves a good rant at the govt though it seems
fishwrecked.com/forum/are-you-buildertradesman-struggling-or-out-work
Officially off the Pies bandwagon
dumper
Posts: 1027
Date Joined: 03/04/08
It's jab, jab, jab
It's jab, jab, jab
aaasnapper
Posts: 218
Date Joined: 15/01/10
No issue
If you not happy about the medicare tax then you can always move over to the good ol United States, where it does not exist along with the public heathcare system.
So as far as I am concerned I have no problem supporting a system that helps out the not so fortunate in our society.
null
Jackfrost80
Posts: 8148
Date Joined: 07/05/12
I got no problems with the
I got no problems with the Medicare Levy just pointing out how stupid a system is when I can take a couple of days off work to reduce my income and avoid an $1835 levy surcharge if I am flying that close to the threshold. No way wil I go to work for those 3 days knowing it's going to actually cost me $1835 so now the govt is missing out on tax on those 3 days as well as the surcharge. There has to be a better system.
Officially off the Pies bandwagon
Deleted
Posts: 6265
Date Joined: 26/04/14
http://www.fishwrecked.com/f
http://www.fishwrecked.com/forum/gnarloo-pics-pic-heavy
http://www.fishwrecked.com/forum/coral-bay-34#comment-689715
http://www.fishwrecked.com/forum/montebellos-vid#comment-689716
Jackfrost80
Posts: 8148
Date Joined: 07/05/12
Very impressive
Very impressive
Officially off the Pies bandwagon
barneyboy
Posts: 1392
Date Joined: 08/01/09
sorry mate
but, why are you looking for a better system, when you have already worked one out for yourself??
FEEEISH ONNN!!!
Jackfrost80
Posts: 8148
Date Joined: 07/05/12
I meant more in line with the
I meant more in line with the tax threshholds were you don't pay significantly more if you tick over a set theshold. The example being with the $80,001-$180,000 income tax threshold. If we were to apply the MSL principal to the tax thresholds, it would be like paying significantly more in tax if you earn $80,001 than if you earn $79,999. In this case they are different thresholds but the same amount of tax payable.
Officially off the Pies bandwagon
t bone
Posts: 351
Date Joined: 20/04/14
go the private
I get shafted each and every way possible by "uncle sam" but I was under the impression the later ya leave it to get private, the more it will cost. If your at that "turning point" now. Would it be worth to go with the private, in the chance your combined income will increase to a level where you cant go fishing for a few days to avoid?
As others have said, if loosing $$ towards the medicare surcharge, might as well use that same coin towards better coverage foy you and ya family?
Just my 2 cents worth :)
sea-kem
Posts: 15008
Date Joined: 30/11/09
Yeah we made that decision
Yeah we made that decision years ago and are now reaping the benefits. Don't have the max coverage but it helps with dental and podiatrist etc
Love the West!
Jackfrost80
Posts: 8148
Date Joined: 07/05/12
Cheers mate, that's a very
Cheers mate, that's a very good point, I hadn't factored in the age related increases now that the Mrs and I are both over 30 and then having no choice but to take it up later on.
I'm already paying top level cover for extras but when we discovered the Mrs was pregnant about 2 weeks after we layed our slab and the hospital cover was the 1st thing to go. I reckon I'll probably just dodged it this year with deductions factored in and will probably do less OT now that the Mrs is bringing in extra coin but next year I reckon I'll have no choice.
Officially off the Pies bandwagon
Rob H
Posts: 5806
Date Joined: 18/01/12
How have you got "top level
How have you got "top level cover" but still paying surcharge?
Dunno if you have read my post above about tax but you have got it good sorry.
I earn the same as you as single income family but pay 50% more tax AND cant contribute any more super for her for the priviledge.
Thats being shafted, as neither do we claim child care allowance because she is at home.
Give a man a mask, and he'll show you his true face...
The older you get the more you realize that no one has a f++king clue what they're doing.
Everyone's just winging it.
Jackfrost80
Posts: 8148
Date Joined: 07/05/12
Top level extras cover.
Top level extras cover. There's two types of private cover being extras (physio, dental, chiro, optical etc) and hospital (basically whatever medicare covers except you jump the queue, chose specialist and hospital etc)
I didn't want to get into comparing personal circumstances but yeah we have it pretty good with two decent paying secure jobs and no arguement there mate, if you read my post I said "it's a good problem to have" do you earning the combined salary of two people with potential for the Mrs to work and bring in even more income at which point you'd actually need the child care rebate. It helps but we still have to fork out over $20k per year for daycare after the rebate.
Officially off the Pies bandwagon
Rob H
Posts: 5806
Date Joined: 18/01/12
I didnt know you could have
I didnt know you could have "extras cover" without having actual hospital cover?
By its very definition (Extras) I thought it had to be connected to Health Cover?
The problem you have with your scenario of course is that you or the missus only need to have something more (pay rise/better position etc) halfway through the year and suddenly its not "3 days fishing" to avoid it but a week, 3 weeks or more.
And if you dont have the cover AT THE START OF THE YEAR, your payin the difference!
Give a man a mask, and he'll show you his true face...
The older you get the more you realize that no one has a f++king clue what they're doing.
Everyone's just winging it.
bod
Posts: 2319
Date Joined: 03/05/06
Extras
HBF have flexi saver extras with four choices for around $250 per year, no hospital cover needed. So if you're a pensioner for example (or whatever) and can't afford hospital private health cover, you can still have dental, major dental, ambulance, optical etc for an affordable fee.
crasny1
Posts: 7003
Date Joined: 16/10/08
Without health you have
Without health you have nothing.
And comparing wait list alone in the Public and Private system, plus being able to get a good specialist compared with who ever is on for the day in the public sector is another huge bonus.
Always happy to pay to stay well - the other choice suxs.
"I would like to die on Mars. Just not on impact!!" _ Elon Musk
Jackfrost80
Posts: 8148
Date Joined: 07/05/12
Spose ya right and I should
Spose ya right and I should look at it as glass half full i.e. I am gaining something rather than shelling out. That being said I've had 2x knee surgeries in the past year through the public system and got through the back door to choose my surgeon who is one of the best in Australia and go in in 3 days for the reco and 2 months for the meniscus. Gotta admit though I was extremely lucky with the reco as I'd still be waiting until Oct if it wasn't for the cancellation.
Just kills me when the Mrs goes from 3 to 5 days per week and after daycare, after and before school care and tax/levy increases it results in a measly extra $62/day. Worse still she wants to save it for home improvements rather than boat improvements!
Officially off the Pies bandwagon
uncle
Posts: 9486
Date Joined: 10/02/07
Have full cover.just have to
Some people actually go in public to avoid the gap
all aggressive fish love bigjohnsjigs
dodgy
Posts: 4578
Date Joined: 01/02/10
They can't argue with the
They can't argue with the spending if it's the man bringing it in. Mine is about to re-enter the workforce after 10 years stay at home mum. She is just happy to have some of her own income that not designated fishing funds.
Does anyone know where the love of god goes, when the waves turn the minutes to hours?
Lastchance
Posts: 1273
Date Joined: 02/02/09
Its even better when you
Its even better when you qualify for the surcharge, have top cover and live where there is no private hospital - yeah you can ASK for a private room, generally its a no. Im all for the US system, if you cant afford it why should I have to supplement your illness with my money?
JacksonL
Posts: 108
Date Joined: 24/06/14
because you live in society
because you live in society and the cost of that is looking after other people.
The benefit is when you need help it's there for you.
know anyone with cancer that doesn't have $500,000 tucked under the bed to pay for the level of treatment we receive for next to nothing? Would you enjoy seeing them choose whether to burden their children with the debt or to refuse treatment just so you can save 1% on your tax?
Justin M
Posts: 1207
Date Joined: 14/01/13
Rob H
Posts: 5806
Date Joined: 18/01/12
Give a man a mask, and he'll show you his true face...
The older you get the more you realize that no one has a f++king clue what they're doing.
Everyone's just winging it.
Lastchance
Posts: 1273
Date Joined: 02/02/09
I see your point and it is
I see your point and it is valid, but Im not necessarily talking about expensive treatments like cancer. The system does not encourage people to look after themselves with things like diet, exercise, not smoking, changing your own dressings post injury etc - as they are well aware that they can walk into a hospital, load up the ER and get free treatment from a system that is propped up by tax payers who are already propping up the rest of society for those that don't give a damn about it. Just my thoughts is all.
Jackfrost80
Posts: 8148
Date Joined: 07/05/12
Ah bugger just realised the
Ah bugger just realised the MSL also includes any reportable fringe benefits. Private hospital cover it is.
Officially off the Pies bandwagon
Rob H
Posts: 5806
Date Joined: 18/01/12
did tell ya that!
yep, as I told ya way back the threshold is more than just your taxable income, same with Centrelink and other benefits.
Give a man a mask, and he'll show you his true face...
The older you get the more you realize that no one has a f++king clue what they're doing.
Everyone's just winging it.
crasny1
Posts: 7003
Date Joined: 16/10/08
Now that you have that
Just tell me what your problem is in the future and I'll point you to the best.
If you look at it this way - we insure our house, car, boat etc because we want them looked after and not wear pain when something go wrong. But we quibble about insuring our health. Now when something here go wrong you might not have to worry about paying those fees.
I used to assist an Orthopaedic Surgeon with Knee and Hip replacements. The difference is noticeable between Private and Public patients. There are a few different types of Metalware for hips and knees, and like everything else some are better and sometimes more expensive than others. Private patients get what the specialist think is the best and is also the ones the Surgeon knows well, Public patients get the ones the Government gets at the cheapest price and need a Rep from that Company to "Guide" the process. The way each artificial joint is inserted varies. Your favourite you know backwards, the others you might know but not be an expert in it. Don't get me wrong, the Surgeons still know this backwards, but to use a fishing analogy I would rather fish with a Stella than a Sienna if I had the choice, and I would rather fish a technique I know backwards, than trying to fish something new (like jigging for me - yet :-( ).
"I would like to die on Mars. Just not on impact!!" _ Elon Musk
uncle
Posts: 9486
Date Joined: 10/02/07
Full cover cost a fortune
But when I had an ICD fitted the specialist said you get the rolls royce not the volkswagen
all aggressive fish love bigjohnsjigs
pelagicyachts
Posts: 1322
Date Joined: 23/02/11
Jackfrost80 - take out
Jackfrost80 - take out private health mate, I hope you never need it but trust me from a very recent personal experience - it could very well save your life -
The difference between private and public as stated previously is wider than most can imagine. Don't take that as a stab at those who work in the public system but rather an endorsement of the treatment/access to experienced medical professionals you receive under private.
dodgy
Posts: 4578
Date Joined: 01/02/10
I'm sure there are lots of
I'm sure there are lots of fw members dreaming of making 180 a year in their household. Tipping they hope you pay a little extra tax for them.
Does anyone know where the love of god goes, when the waves turn the minutes to hours?
Jackfrost80
Posts: 8148
Date Joined: 07/05/12
I'll go them halves if they
I'll go them halves if they tip in half my daycare fees
Officially off the Pies bandwagon