jad n rich

Interesting insight into working class aussies and income perceptions. Backs up Hevs thread starter on needing $80,000 a year.

http://www.theage.com.au/news/Genera...843367651.html

Grayling

Interesting article.

Puts the wage question into some sort of perspective.

Also a bit worrying considereing what we hear on the forum about what people are expecting to earn.

G

JackTheLad

Very true. The more you earn, the more you want.

Its a consumerist society,

JTL

Merlot

Took the words out of my mouth G, I think people do think that milk and honey is the life there.

I work with a "Born Again Australian", the bloke a born and bred Geordie, near retirement, goes to Oz every 1 to 2 years to see friends for a holiday, thinks Australia is the bees knees and raves on about the land of plenty and how you can get a 5 bed house with a pool for £50k - maybe in the back of Bourke mate!

He does a great sell but is VERY mis-informed about the realities of it. His heart is in the right place I suppose, though occasionally I could whack him one!

Food for thought.

M

Larissa

The tax limits are silly... hubby has done a spread sheet factoring in rent rebate and family assistance. (Don't know what I've done to his lappy so I will rely on memory :scared: .) If you earn say $100,000 per annum, take home is about $64,000 as you lose all assistance etc. If you earn $60,000 you get to keep loads more of it and are probably working significantly shorter hours or not working in cr@ppy conditions etc. bearing in mind that many of the $100,000 per annum workers are on rigs at sea or down mines. If you also factor in that many of said workers are trying to get on the housing ladder then there is no differentiation between comfortably rich and those trying to improve themselves.
Sorry about the rough figures

Megalania

Rough enough for the point made.

Between social security payments to households on the one hand and progressive taxation of salary on the other, net household income increases more slowly than increased gross household incomes.

This shows up in retirement as well - increased yield on pension investments has relatively little effect on after tax pension payments.

However, those on $100,000 can make substantial superannuation contributions which dramatically reduces income tax and increases retirement capital - which does produce / allow much larger pension payments in retirement.

Superannuation, however, does not help households buy housing.

bondipom

There are many people I know who have invested in housing to boost the pension. I wonder if the $100,000 club are rethinking that strategy in favour of super.

ozzieeagle

Totally agree with all the sentiments and views in that article, at around 100,000 bucks per year, all the child benefits stop (actually it's circa 88,000, for two kids). Tax seems a bit over the top, Health insurance seems bloody expensive. We personally have to have health insurance now, because we are reaching an age, where we may well start to use it. Anything extra one buys, comes at the cost of having to stall something else. IE: I get around in a Datsun 120Y, but have really good holidays. (the wife drives the ford, and cracks the sads, if she has to drive my dato dammit lol)

I just wish, the government, any government, would let my wife and I pool our incomes, so we could really get some tax benefits.


One pointer for anyone reading this post, who is in a similar postion to ourselves, as the kids get older, it really does become easier, So that pinpoint of light at the end of the tunnel, is real !

MrsDagboy

Dagboy has gone to a 4 day week now, he brings home exactly the same money that he did when he started working here in Australia 4 years ago, & he's "semi-retired" (love telling him that, makes him feel old ). Because of taxcuts & salary increases, he found that he could work the extra day/week for those few hundred extra dollars a month, or take it easier & still have a comfortable income. He's also increased his super to bolster the retirement fund (as well as investment in shares & property to answer BPs question).

Havent even looked at if we're eligible for any family assistance now to be honest. Maybe I should.

Vanessa

So what would be considered a really good salary in Aus?

ozzieeagle

Good question Vanessa, I personally have to go pretty hard, work night shift, with a little bit of OT, to get to the average wage, around 52,000 aud but it's non skilled work, just postal sorting and affiliated duties, and easy, So I'm not complaining.


I reckon anything over 75,000 AUD, is a good wage.

Megalania

Those 50 or over will be able to put up to ~$100,000 in super through salary sacrifice - the amount their employer will be able to calim as a business expense next financial year - without the super surcharge - so super will be attractive to the older rather than the younger higher salary earners - who can only put away < ~ $30,000.

Market conditions would be more important overall but, yes, some may offload property due to super being more attractive than it was. Many will keep property for diversification reasons.

ABCDiamond

Almost tempted to go out and get a $100k job and salary sacrifice the lot to super

Megalania

Keep <= $21,600 - marginal tax rate 15% - to cover "going to work expenses". You'll have all your income taxed at less than 15%. Now what's holding you back, eh?

ABCDiamond

The fact that I just can't be bothered to get of my backside and look for something
And unless I can enjoy what I do, I just won't do it, "anymore"