pre tax super rant

not fishing related...
The government are modern day thieves, where do they get off reducing the pre tax amount to a limit of $25000. How do they expect you to like comfortably in retirement??
My guess is they don't want to many people with freedom..


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SPOT ON...

Sat, 2017-06-17 11:57

It's bloody disgraceful!

In the meantime, politicians enjoy a VERY generous retirement scheme funded by (increasing) taxes on us????

 

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thieves

Sat, 2017-06-17 12:05

thieving dogs

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self funded retree my self

Mon, 2017-07-03 22:06

 i cant get the a disabbliy pensionn because i worked my arese of in the north west for  for 40 years and have some money in the bank   bludging sister never had a job in her life  gets  every thing handed to her

 

 

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wheres the Media in this?

Sat, 2017-06-17 12:33

It should be front page News.  Need an election Turnball is GONE but is the opposition going to do anything better.. not likely 

Media are too busy reporting click-bait than the real local issues

 

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Just the depth that Varies

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 Whats this about Income

Sat, 2017-06-17 16:31

 Whats this about 

Income under 25k is tax free?

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getting the bottom line final answer from a bunch of blokes that use false names and put smiley faces at the end of paragraphs is not the best place in the world to get the information you seek.

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super

Sat, 2017-06-17 16:48

Was talking about the maximum you are allowed to put into your super pre tax ($25000) that is now for all ages from July 1

Dale's picture

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Sat, 2017-06-17 16:54

 I pay 20% salary sacrifice on top of the 9.5 my employer puts in or what ever it is. I didn't start super proper until about 2002, so I'm playing catch up. Fortunately my super is growing good.

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superfund

Sat, 2017-06-17 19:04

what superfund?  You will get smashed at tax time when they audit the funds if you keep that up next year.

Dale's picture

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Sat, 2017-06-17 19:12

 I'm with BT investor wrap. I'll be sitting down with my accountant soon to talk about it more.

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doom

Sat, 2017-06-17 19:18

 don't mean to come accross as doom and gloom, just a heads up as the ato won't tell u and the government are modern day thieves. i'm only adding a little extra to bring the total pre tax contribution to just under the cap.

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Cheaper to keep her?

Sat, 2017-06-17 19:07

I do agree with the Rant , I always see red when the buggers start changing/ modifying a mans  retirement nest egg, they have worked hard for.

After a financially cripling un marrrying 5 years ago ( thats what hipsters are saying isnt it?) I will be working till im 100 , and have no chance of

salary sacificing anything except loose change so it wont affect me personnelly , but still,  its not on .

 

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quadfisher

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When you make an agreement

Sat, 2017-06-17 19:24

When you sign up to a super plan that plan should remain extant, if there are any changes they should only apply to those who sign up after the agreement has changed. You may win you may lose but your original agreement should stand until you expire.

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Regulator

Sat, 2017-06-17 21:43

 If the gummint changes the rules and it is approved by the regulator then the funds have to comply.

Where your argument works is when the fund tries to change you to a different product and can't demonstrate that you are equally well off without it being a legislative change.

 

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News

Sat, 2017-06-17 20:17

 This is not news. It was announced in last year's budget.

You will find that very few people actually get anywhere near the $25000 cap. I do feel for those who are going to be restricted thoughm

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 Hahah im lucky to have 20

Sat, 2017-06-17 20:55

 Hahah im lucky to have 20 bucks a year super 

 

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getting the bottom line final answer from a bunch of blokes that use false names and put smiley faces at the end of paragraphs is not the best place in the world to get the information you seek.

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 if you can salary sacrifice

Sat, 2017-06-17 22:13

 if you can salary sacrifice $500 a week you aint doing it tough. Im sick of reading about people with 1 1/2 mil in super complaining that they are losing 20-$30 in pension payments because their super has gone up 2%

 

 

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Spot on. All the while

Sat, 2017-06-17 22:20

Spot on. All the while avoiding paying their fair share of income tax

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 Rubbish. If I work twice as

Sun, 2017-06-18 09:15

 Rubbish. If I work twice as many hours as you do and pay 90 grand a year in tax am I paying less than my 'fair share' if I can structure that down to 70 grand?

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Strange comment regarding

Sun, 2017-06-18 15:12

Strange comment regarding hours worked. The ATO only care about your taxable income not how many hours per week you worked to get it.

Looks like the Govt is drawing a line in the sand between allowing us to use tax system to ensure we are self sustainable in retirement and allowing us to use the tax system to store wealth and avoid income tax. $25k per year is a very generous amount imo.

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 Subjective depending on how

Sun, 2017-06-18 17:44

 Subjective depending on how much tax you pay really. 25 grand may seem like a lot to those that only pay 30 or 40 grand a year in tax. 

Little different for those that pay 100 grand a year tax and expect a more comfortable retirement. H

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Does anyone know where the love of god goes, when the waves turn the minutes to hours?

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fifo

Sun, 2017-06-18 17:54

I am fifo and pay a lot in tax, so trying to sort that out.

And trying to get away from the fifo handcuffs

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 I'm the same. Well, fifo for

Sun, 2017-06-18 19:49

 I'm the same. Well, fifo for another couple of weeks until I move back north anyway. I'd put more into investment if I didn't like to go away fishing so much. Haha.

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Does anyone know where the love of god goes, when the waves turn the minutes to hours?

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If you're paying $100k tax

Sun, 2017-06-18 20:14

If you're paying $100k tax that means you're earning in excess of $280k per year and have $180k disposable income to use to invest in your own future without leeching off the Australian public via tax concessions.

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wow

Sun, 2017-06-18 21:10

 lol no way near it not going to get anywhere near half that working in a kitchen, and im lucky to get a decent superannuation scheme 14%. im only putting in a $100 a pay to reach the limit. focosing on the house and other shite first

sea-kem's picture

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 Why the fuck not if it's

Sun, 2017-06-18 21:12

 Why the fuck not if it's legal, the amount of tax I pay is ludicrous and I'll take any consessions I can get. If you want to talk about leaching then talk about the lazy fucks who won't work and suck the welfare system dry. Anyone who's hardworking and earning a good income probably deserves it as well as a comfortable retirement nest egg. 

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$25k pre tax on top of your

Sun, 2017-06-18 21:31

$25k pre tax on top of your employer's mandatory contribution is a legal and fair nest egg

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.

Sun, 2017-06-18 21:41

It isnt "on top of your employers..." it is including.And to make it harder to calculate, what you contribute and see on your payslip is NOT what counts as your contribution.
The fund usually receives it a month or more later aand thats where it fits in the FY

Hence as I did, made a lump sum salary sacrifice last year in June, but discovered it actually counts in this years amount which will now go over.

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The older you get the more you realize that no one has a f++king clue what they're doing.

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 No idea Jack, I had a year

Sun, 2017-06-18 21:37

 No idea Jack, I had a year not long back where I paid $99K tax and didnt gross anywhere near $280K.

 

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 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.

 

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ATO tax calculator shows an

Sun, 2017-06-18 22:08

ATO tax calculator shows an income of $280k paying $99,547 in income tax. Change your accountant champ.

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.

Sun, 2017-06-18 22:36

 Better look again "champ"
Not included in that is the Medicare levy $5600 and Budget Repair Levy 2% extra 

No difference between a levy and a tax

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 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.

 

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No they are not the same it's

Mon, 2017-06-19 08:24

No they are not the same it's just that levies are Federal contributions which just happen to be charged through the Federal taxation system. The proceeds of a levy can only be used for what the levy is for i.e. the Feds cannot syphon funds from Medicare to fund a road or rail project.
 
Medicare Levy is a flat 2% over a certain threshold. $5600/0.02=$280,000. I calculated that on the back of a napkin so it might be time to change your accountant, sounds like he's just winging it.

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 I've missed your point? They

Mon, 2017-06-19 08:35

 I've missed your point? They are still a gov charge when you hit certain thresholds, levy/tax potato/potata you still have to pay the bastard. 

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.

Mon, 2017-06-19 18:25

 wasting ya breath Andy.

Funny, people whose employers give them perks such getting a new car pretax, complaining about other people getting "perks", that they earned by hard work...

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 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.

 

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I drive a pool vehicle that I

Mon, 2017-06-19 19:27

I drive a pool vehicle that I have limited private use of for which I have to pay my FBT contribution for AFTER tax.

Keep trolling though mate or better yet, head out and chuck in a line and post up some pics. You'd be surprised how much of a good day you'll have.

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Sounds like YOU need the

Mon, 2017-06-19 20:52

Sounds like YOU need the better accountant so you can "rort" the system like other Gov employees at our expense

See Frosty, Im am out on the water for sure right now but no time to drop a line for me.
Cos I dont work office hours

Steaming to Darwin, sluggin my guts out keeping this old girl running

Yesterday main engine fuel pump, today main AC dropped gas, repaired and regassed

But no need to cry for me, I get out there when I can but I go a bit further than just outside Hillarys so go less often.

While I guess some people havent like some of my comments over the years here, not many would class them as trolling I dont reckon.

 

____________________________________________________________________________

 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.

 

sea-kem's picture

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 Ya know Rob I've had good

Mon, 2017-06-19 19:51

 Ya know Rob I've had good years in business where I've managed to max out my super contribution and that was the couple of years we were getting offshore work and yep I paid over $100k each of those two years in tax. As you know the last couple of years it all fell in a hole and guess what I haven't been able to put a cent in my super as I've just been concentrating on keeping my business alive. So I don't take it kindly when someone says I'm scheming or leeching tax when I try to put as much as I can away for my retirement as mentioned in comments above. Very nice to have a cushy gov number hey Jack not a mug like me working for myself on average 10-12hrs a day. Yep it's my choice and I love it , and I'll take any perks or tax incentives that come my way. Fuck it I work for it. 

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Mon, 2017-06-19 19:54

 

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my bad

Mon, 2017-06-19 21:08

 wasn't meant to be a troll fest just a simple staement and a rant about the superannuaton.  Just trying my best to look after my family while i do 13 hour shifts and now have to work back an extra week.. 

Dale's picture

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Mon, 2017-06-19 21:42

 Geez Shane, your a FIFO, working in a kitchen doing 13hrs a day. I'd never let our guys do that for 13hrs a day. Who are you working for?

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Supervisor

Tue, 2017-06-20 06:06

come with the job all the paper work and the standards, it is offshore. More supervisor than cooking, sometimes both. Only small

numbers. 

We get our breaks, so not that bad, more often than not it's the pressure we put on ourselves in the kitchen.
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$280k doesn't quite equate to

Mon, 2017-07-03 16:05

$280k doesn't quite equate to $180k I can tell you.Don't forget the extra 1% on top on every dollar over $250k, (Which has already half gone) and then the penalty for contributing too much to super - sign here Daisy, we're taking even more from you. Plus the fucken raised Medicare levy bullshit. The public perception is that the money is taxing the 'wealthy' like Gina and Twiggy, no its the cunts that got off their asses and got the qualifications to get good paying jobs, worked ridiculous hours in shitholes in the middle of nowhere just so we can pay 51% back to the fucking government so they can give it to the cunts that didn't try. Slightly pisses me off. Modern day slaves

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 And the access age keeps

Sat, 2017-06-17 22:47

 And the access age keeps going up, I probably won't be able to get mine until I'm around 70 if I'm still here. My own fucking money I've personally paid in. 

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yep

Sun, 2017-06-18 06:08

I am 40... just...
I won't be able to retire until I am at least 75 I would say, yet Johnny Howard is on $250000 a year..

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preservation age for you now is 60

Sun, 2017-06-18 09:45

why do you think you wont be able to retire till 75?

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goal posts

Sun, 2017-06-18 10:03

cause they will keep changing the goal posts

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Agree and hate that changes

Sun, 2017-06-18 10:07

Agree and hate that changes can be made but doubt that they will up the preservation age by 15 years.

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maybe?

Sun, 2017-06-18 13:11

Just looked at a life exp chart , and since the 1960,s male australians are living about 10 years longer, so he,s 40 now ,

so if Aussie males are living to there 90,s on average in say the 2040,s , old mate may indeed be working into the 70,s.

Dont forget aging population , hence less tax,s will mean Govts may look at increasing the age for super , pensions etc.

Coupled with that , home ownership and people settling down to have familys has all gone up so much, that morgages

will be lasting into peoples 60,s and 70,s in the future.

Just my take.

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quadfisher

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Cant gripe about hating super

Sun, 2017-06-18 14:38

Cant gripe about hating super and the goal posts moving then add the max you are allowed to add.
:)
If you are young enough to not be able to see the goal posts in sight just don't add to it. simple

But Yep very good points have to generally agree with what you've said but play it as an age based tool.

Anyone in their 20s and 30s (Personal opinion only) I believe you'd be insane to add to your super but getting to 40s you really need to be looking at it and if you are in the right tax bracket moving to it.
Of course once you are into your 50s it generally is going to be the most tax effective and best option cos the preservation age approaches fast.

Agreed that the age for pension (especially) will be raised and preservation age will be upped but politically don't think it will happen that quickly. (who knows though)....
hope you are wrong would love to get at my super at 60

:)

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super

Sun, 2017-06-18 15:07

yep I'm all over it agree with your points, just don't like it when they cap it at $25000

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 Yep, system needs an

Sun, 2017-06-18 10:24

 Yep, system needs an overhaul. As long as there is politicians whose main aim is to protect the rights of bludging picks and other politicians who are shit scared of scrapping middle class welfare as it is the only thing propping up housing prices in the mortgage belts of Australia, the goal posts will continue to be shifted. It makes it bloody hard for some one to reliably plan for retirement. 

 

I'm of the belief that most social welfare should be scrapped (excluding the age pension and disability for actual disabled people). Reduce the income tax rates by half and redirect the money that would've been paid to the ATO into super. That super could then be drawn on to purchase a residential property and also be your fall back in place of Newstart etc. This would take around 25 years to implement fully, but would add around 50b a year into public spending a year based on today's figures. 

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Mulie

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Just a broad statement about super funds

Sun, 2017-06-18 16:10

The superannuation funds have very large amounts of money for investment.

I would like to see them invest in Australian assets rather than overseas owned businesses.
Things like lets buy back the farms from overseas ownership and get vegemite back into Australian hands, and as for selling the rights of Darwin harbour to a foreign country that to me is just plain madness.

The super funds have the capital to do these things IMO and I think it would be a good thing for Australia as well.

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free market

Sun, 2017-06-18 16:16

Not sure a lot will be happy with negative returns

It's really up to individual choice. if you want invest in only Aust shares etc. it's the click of a button

bradz's picture

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Nail - head

Sun, 2017-06-18 19:42

 Jackfrost nailed it. Super is intended as a retirement planning tool not a wealth creation strategy. Other investments can be used as well but if your sole reason to invest is to reduce tax then you are heading in the wrong direction.

As for thinking that you should not start extra super in your 20's or 30's is short sighted. Have you heard of compound interest? $50 extra per fortnight from 20 to 60 and you'll have an extra $300k at 60.

Wait until you are 50 and you have to find $800 per fortnight.

Sure, the goal post keep getting moved, but they are still in the same general direction.

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I didn't say piss the $50

Sun, 2017-06-18 20:15

I didn't say piss the $50 extra / fortnight up against a wall, I just said (my opinion only) it's best to not lock it away for 30-40ish years. And generally ...the older you get and the closer the goal post get the more you should use the superannuation tool.

FWIW : for the general person/couple out there ....Pay your house of first.

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That's where our extra cash

Sun, 2017-06-18 20:22

That's where our extra cash is going after paying off a few outstanding debts.

Treaded water for 6 years and now punching an extra $1500/month into the mortgage after paying off all our other debts.

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sunshine's picture

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And there are good benefits once 60

Sun, 2017-06-18 20:51

 To use the allowance to top up (though the 35G was better) your super as the tax savings effectively mean the government pays half.  That is what both my wife and I did in our last four years and the extra really helped.  Paying off the house and indeed all debts first should be a priority.  Mind you despite what I consider not a huge super fund to draw off we only get a pension of $35 a fortnight but the health card is good!

DTrain's picture

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Don't want to be rude, but if

Tue, 2017-06-20 09:10

Don't want to be rude, but if you've got a spare $25k to throw into super each year then you're probably doing better than most Australians.

Maybe you should appreciate what you have and not winge about it.

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 Unless hes self employed it

Tue, 2017-06-20 09:32

 Unless hes self employed it wont be a "spare $25K"

It is in addition to the employer contribution so could be $5K, $10

On top of that though, each year?
Most of us have good years and bad years unless you have a Gov job.
Should at least be able to average it over say 3 years.
Cos if you dont put it in this year, that allowance is gone and you can never add it again penalty free

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 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.

 

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correct

Tue, 2017-06-20 10:08

As Rob said

bradz's picture

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Not quite right Rob

Tue, 2017-06-20 12:05

Hi Rob

Just need to pick you up on your last point. The new $25,000 concessional cap comes in from 1/7/2017 but, from 2019 they will allow you to use unused portions of your cap from that point on. I realise it wont help for caps not used up until then but at least its a step in the right direction. 

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 True I did hear something

Tue, 2017-06-20 12:44

 True I did hear something along those lines.
Bummer though that they make the restrictions immediate but the mitigation/easing delayed

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 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.

 

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Date Joined: 07/05/12

It's all about balance and

Tue, 2017-06-20 21:50

It's all about balance and priorities really. I had the opportunity to take a high paying job that required a rostered split away from home but decided to stick with the security of a gov job paying half that was offered so I could come home and see my children each night.

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 Of course it is. But don't

Tue, 2017-06-20 22:06

 Of course it is. But don't go knocking people that are prepared to sacrifice that time that you enjoy every night to build a better future so their kids don't have to do what you have had to to provide the lifestyle you live. If you are prepared to sacrifice then there should be some benefits. Not everyone has the opportunity or is lucky enough to work for a government department. 

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 I've weighed it up too but

Wed, 2017-06-21 04:56

 I've weighed it up too but the reality is if I took a local job my wife would have to work and put the children into childcare. Wasn't prepared to have someone else raise my children for those first formative years. 

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Does anyone know where the love of god goes, when the waves turn the minutes to hours?

ricey's picture

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I am choosing to start contributing to super now

Tue, 2017-06-20 13:00

I am about 40, and mortgage is under control and interest super low at 4%.

 

If I put extra money into my mortgage, I feel good, and save paying the 4% (compounding).

 

However if I put extra money into my super now and I have to only pay 15% contributions tax, saving me 17.5% if I earn under $87000, or 22% if I earn more (and more still if I earn over $180 000). And that money might average 4% interest - negating the benefit of my mortgage. 

 

I ripped below off some website, 

 

 Let’s look at the numbers. A 30 year old on a salary of $60,000 with a balance of $25,000 in super could expect to have around $424,618 at age 65. But someone salary sacrificing an extra $50 per week into super could expect to have $560,559 when they retire. That’s over $136,000 extra.

 

where as if I but an extra $50 per week into my homeloan say of $300 000, I pay it off 4 years, 5 months quicker, and make a saving of $33,200 interest.

 

So by all means pay off extra into your homeloan - I have been and feel pretty settle about this, but assuming I will be able to pay my bills, and get my house paid off, I will really want for extra $$ when I am no longer working... and hence super is the way to go now I think over a long period of time is tax sensible.

 

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I see your point but wouldn't

Tue, 2017-06-20 21:44

I see your point but wouldn't it be great to wake up every morning knowing that you don't have to pay off a mortgage to someone else. To me knowing that you don't owe anyone anything would be priceless. I haven't paid anything into my super for the last four years. I reckon dig a hole and bury it if you can. 

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 Get busy living, or get busy dying!

Posts: 1522

Date Joined: 09/03/13

good comment and I'm

Wed, 2017-06-21 07:22

good comment and I'm certainly not trying to dissuade ppl from putting into super but in reality Im not sure the figures would add up.

...We are very lucky in one way that todays interest rate is so good. It's only for the last couple of years that interest rates have been 4ish percent and the majority of people with homeloans will pay somewhere in the realm of 8-9ish percent average over the 30 year term. (and could well be much more !) Make no mistake interest rates will rise again. Nice to have a chunk payed off when they do.

...in reality there a times when most loose a job ...are badly sick for a period of time etc etc and having a big buffer is very important. You sound disciplined when it comes to money I'm sure will do the right thing, really I was talking about Joe average in his/her 20's to 30's who may not be so disciplined having CC debt car loan etc and then putting extra into super.

Also....some of us have aspirations of retiring well before preservation age. cant be done if your money is locked in.
:)

and lastly of course investments shares etc are not taxed at your marginal rate. Capital gains don't work like that. and that's not including franking dividents etc.

bradz's picture

Posts: 693

Date Joined: 29/10/07

Tax

Tue, 2017-06-20 13:22

Spot on Ricey

People seem to forget that Super is not an investment...its purely a way to get your money into investments and only get taxed at 15% on the contribution amount rather than your marginal rate of 32.5%, 37% or if your lucky 47%. Straight up you are saving 17.5%, 22% or 32%....before you even invest the money. And then the interest earned is only taxed at 15% whereas your other investments are taxed at your marginal rates.

The bang for your buck that super gets (even if you invest in the cash plan only getting 3%) is huge because you benefit before a cent of interest is accrued.

Sure you cant get it until 60 for most people, but that just means you dont put in any funds that you cant afford to be without. Hence the theory of making relatively small contributions increasing over time. 

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I did then the best that I knew how. When I knew better, I did better.

duges66's picture

Posts: 138

Date Joined: 07/03/12

Jackfrost80 - Quote "If

Sat, 2017-06-24 09:32

Jackfrost80 - Quote "If you're paying $100k tax that means you're earning in excess of $280k per year and have $180k disposable income to use to invest in your own future without leeching off the Australian public via tax concessions."

The figures you come up with would be nice if true.

Here is the reality.

$280,000 - Total yearly earnings

$101,260 - Income tax on $280,000
$5,600 - 2% medicare levy
$2,000 - 2% budget repair levy (only charged on taxable income >$180,000)
$3,750 - 15% Superannuation tax
$3,750 - 293 tax on superannuation +15% of the $25000 super cap ($17500 of $25000 cap actually going into the retirement account)

$116,360 - Total tax paid on $280,000
$163,640 - Total income post tax
$17,500 - Contributed to superannuation
$146,140 - Available disposable income

Given the figure of $116,360 tax being paid and considering the vast majority of available income (post mortgage and private health benefit fund payments so as not to be a burden on the public health system) would be spent in the community thereby attracting an additional 10% GST do you still stand by your offensive comment that they are LEACHING OFF THE AUSTRALIAN PUBLIC?

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There's 3 kinds of people in this world, those who can count and those that can't.

Posts: 8027

Date Joined: 07/05/12

I'll have to start taking

Sat, 2017-06-24 14:51

I'll have to start taking tickets for those who want a crack.
 
If you're going to include the Medicare and budget repair levies to work out your disposable income shouldn't you also be including the GST you pay each time you buy GST applicable good and services, the emergency services levy (paid in your council rates), excise on alcohol and tobacco (if you consume either), electricity service charge, fuel excise, water rates and your council rates or did you just choose the Medicare and budget repair levies because they are taken out the same time as your income tax?
 
Now onto my comment RE leeching seeing as it has upset you and Andy so much, this was specifically in response to the premise that friton put forward that someone could put an extra $500/week into their super on top of the mandatory contribution which big Rob has since informed cannot happen and you can only top it up to a total of $25k i.e. manditory contribution plus voluntary contribution. So yeah, if there was a situation whereby someone on a huge income was reducing their tax to store away an extra $25k per year on top of the mandatory contribution in their super purely for wealth creation I'd still say they are leaching off the Australian public.

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Officially off the Pies bandwagon

duges66's picture

Posts: 138

Date Joined: 07/03/12

So given there is no

Sat, 2017-06-24 18:27

So given there is no situation where someone... can put an extra $25k.....blah blah then ultimately your assumptions were and are still based on a hypothetical that don't exist in reality. The saying "get real mate" is quite apt.

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There's 3 kinds of people in this world, those who can count and those that can't.

sea-kem's picture

Posts: 14833

Date Joined: 30/11/09

 There's a saying my mother

Sat, 2017-06-24 18:54

 There's a saying my mother in law used to say Jack (bless her soul) You've got too much of what the cat licks it's arse with.

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Love the West!

Posts: 5738

Date Joined: 18/01/12

 If you dont believe that the

Sat, 2017-06-24 19:26

 If you dont believe that the $25K is NOT on top of employer contributions then maybe ask that shit hot accountant you mentioned?

Seeing your on a roll to stamp out all this rorting going on, Im sure you are campaigning against the publc service "rort" of Novated leasing as well.

After all, thats subsidised by the poor old taxpayer as well but not available to everyone?

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 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.

 

sea-kem's picture

Posts: 14833

Date Joined: 30/11/09

 Lol I'm detecting a

Sat, 2017-06-24 19:35

 Lol I'm detecting a socialist/communist here Rob. Apparently we are not allowed to legally get ahead in this capatalist society.

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Love the West!

Posts: 926

Date Joined: 22/01/10

spot on

Sat, 2017-06-24 20:09

 the government wants complete control and if u are comfertable and self reliant then u don't need them.

on another subject, with a investment property are u better to make lump sum payements or more frequent payments?  btw i'm talking about a smsf fund not negative gearing.

Because u can't use the equity to purchase more property u have to pay the first one down then have another deposit, about 220k left so just wont to know the smartest way to do it.

Posts: 5738

Date Joined: 18/01/12

(No subject)

Sat, 2017-06-24 20:09

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 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.

 

Posts: 8027

Date Joined: 07/05/12

Novated lease? Haha. Try

Sat, 2017-06-24 20:51

Novated lease? Haha. Try again big fella.

The Rob and Andy witching hour has begun early this evening

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Officially off the Pies bandwagon

Posts: 5738

Date Joined: 18/01/12

 hmm, seem to be running out

Sat, 2017-06-24 21:51

 hmm, you seem to be running out of anything to add Jack, back to trolling...

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 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.

 

duges66's picture

Posts: 138

Date Joined: 07/03/12

Given this discussion began

Sat, 2017-06-24 12:23

Given this discussion began as a mild rant by SteveO on the basis that the current government (the opposition have the same policy though some might argue, myself included, that the current govt stole the oppositions policy) has reduced, for people under 49 their yearly super contributions by $5000 and by $10000 for those 49 and over. Keep in mind these figures have only been in place for 3 years. Prior to 2014/15 tax year the max contribution was only $25000 for everyone except 59 or older.

Ok so with that out of the way how will this affect steveO and the rest of the Australian economy as a whole?
steveO I'm going to assume you are under 49. If correct, you are being denied the opportunity to contribute $5000 to your super at the concessional tax rate of 15% which equates to a $4250/yr contribution to your future retirement fund and $750 to the tax take.
Of course you can continue to contribute the $5000 anyway and increase your retirement fund but you'll pay marginal rates of tax on that $5000 (see figures below) Though you will save on the GST component mentioned later.

If you do not contribute the $5000 to super you'll pay the marginal rate of tax so now that $5000 will be taxed at 47c/$ so you'll now contribute $2350 to the current tax year take and will have an additional $2650 in your disposable income each year but of course your retirement fund will be denied the $4250 thereby making you more less assured of being fully self funded in retirement and more likely reliant on all of our children's taxation in years to come*.
You'll most likely spend the vast majority of the $2650 in the community which will attract an extra 10% GST on those funds so around another $250 odd in tax.

It's understandable why they want you to do that as your spending's will boost the economy now.

However, as said, you are more likely to be reliant on the pension (should one exist then) sooner in your retirement so therefore you will be a LEACH then (at least that's the way the current govt views it) though it's conveniently forgotten (also by some posters above) what a great contributor you are now and will continue to be until you retire on your reduced amount = lower standard of living in retirement.

However those that are not effected by such lowering of the $5000 in super contributions cap mostly always have been and will continue to be LEACHES (again according to the current government) by requiring the full pension amount and all the other benefits they are entitled to which high tax payers are not. Though conveniently governments of all persuasions do not apply that thinking to their own extremely generous, and way out of balance with community expectations, superannuation accounts.

*The one thing we can be assured of is multi national and some, though to a lesser degree, national corporations are not and will continue to not contribute their fair share of tax on profits. The very same corporations our retired politicians will be on the boards of whilst receiving their generous pensions. That's right, receiving, not waiting till they are 65/67/70 like you or I will be so things will only get worse and govt's will continue to come looking to milk the same tax milking cows for more and more.
See super, income tax & GST introduction history for evidence. So tax paying Australians expect your super tax, PAYE tax and the GST to be increased taxed further into the future.

So in summary I'm happy to pay high taxes to maintain the "Australian way of life" "Take care of the most vulnerable in our community" etc... but I'll respond if someone has a crack for high income earners wanting to be able to have a standard of living commensurate to their current SoL in their self funded retirement particularly given it's statistically fair to say the majority of those same people are and will continue to be accepting of their benefits (be they unemployment/pension/medicare/child benefits be they past/current or future etc...) on the back of higher taxed Australians.

I suggest instead of those above having a crack at high tax paying Australians perhaps you should be directing it to where it is truly warranted. See above paragraph about politicians and their corporate mates.

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There's 3 kinds of people in this world, those who can count and those that can't.

Posts: 926

Date Joined: 22/01/10

another subject

Sat, 2017-06-24 12:56

 no luck with gps co ordinates 

duges66's picture

Posts: 138

Date Joined: 07/03/12

ShaneO doh! Did that at work

Sat, 2017-06-24 13:16

Shane O doh! Did that at work too, oldtimers disease. Oh well you might have to come up and we go to a few of mine.

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There's 3 kinds of people in this world, those who can count and those that can't.

troya's picture

Posts: 27

Date Joined: 11/05/11

investment bonds

Sun, 2017-06-25 02:21

If you're earning over $180k per year and you've maxed out your super contributions then have a look into starting an investment bond, they are probably the next most tax effective investment after maxing out your super contributions. This money smart page gives a good explanation of how they work. Not sure if you'll be called a leech for investing in one though

https://www.moneysmart.gov.au/investing/complex-investments/investment-and-insurance-bonds

Posts: 546

Date Joined: 20/02/11

 Yep, all these people that

Mon, 2017-07-03 16:58

 Yep, all these people that complain about the rich getting richer. Australia pays out over $200 billion to Centrelink. That doesn't include the government initiatives that the Red Cross and other agencies administer on behalf of the government (so the gov can claim for example that asylum seekers don't get more from Centrelink than every one else). I think it's about time the government reward and assist people for rolling the dice. If you can afford to contribute more than $25k, the government should let you. They support low income earners that get their self contributions matched. I'm a bit over these socialist pricks trying to bring people down to the lowest common denominator. The old saying of 'You get out what you put in' is not true any more. Your share gets diluted by the handouts to useless fucks.

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Mulie

Lastchance's picture

Posts: 1272

Date Joined: 02/02/09

Spot on Mulie, its the old

Tue, 2017-07-04 05:06

Spot on Mulie, its the old participation trophy at kids sport, why try hard to do well when you're going to get the same award anyway

Darren253's picture

Posts: 570

Date Joined: 23/07/16

Ummm

Mon, 2017-07-03 20:36

 Seems like you fellas need to go fishing...