Baby Bonus The End
May 20th 2013, 12:21 am
#31
Joined: Jun 2006
Posts: 4,555
Re: Baby Bonus The End
I just find out absurd subsidising loss making.
And that will be the end of Negative Gearing, as the landlords all begin making the profits that they hoped for eventually with rising rents, and lower interest rates.
In the long term, negative gearing isn't really as good as many people think, and if the Government remove the 50% CGT discount, then Negative gearing would actually be worse for almost everyone, in the "long term".
One example:
Based on $300k capital gain over 10 years with $9,000 per year in claimable losses, for a person on a $60k salary.
Net Tax paid in the year of Sale of property, after adding back any Negative Gearing Tax Rebates.
$ 48,997 Net Tax Without Negative Gearing
$ 38,797 Net Tax With Negative Gearing
Negative gearing = a saving of $1,000 per year in tax.
However, IF the government removes the 50% Capital Gains Discount, these figures would change to:
$ 95,047 Net Tax Without Negative Gearing
$106,297 Net Tax With Negative Gearing
Negative gearing would result in paying over $1,000 per year in EXTRA tax.
In the long term, negative gearing isn't really as good as many people think, and if the Government remove the 50% CGT discount, then Negative gearing would actually be worse for almost everyone, in the "long term".
One example:
Based on $300k capital gain over 10 years with $9,000 per year in claimable losses, for a person on a $60k salary.
Net Tax paid in the year of Sale of property, after adding back any Negative Gearing Tax Rebates.
$ 48,997 Net Tax Without Negative Gearing
$ 38,797 Net Tax With Negative Gearing
Negative gearing = a saving of $1,000 per year in tax.
However, IF the government removes the 50% Capital Gains Discount, these figures would change to:
$ 95,047 Net Tax Without Negative Gearing
$106,297 Net Tax With Negative Gearing
Negative gearing would result in paying over $1,000 per year in EXTRA tax.
May 20th 2013, 12:38 am
#32
Joined: Dec 2003
Location: Hillarys, Perth
Posts: 3,973
Re: Baby Bonus The End
What should be scrapped is the $7000 first home buyers grant to people that have already bought a home overseas.
May 20th 2013, 1:22 am
#33
Forum Regular
Joined: Mar 2013
Posts: 255
Re: Baby Bonus The End
ANY business that makes a loss is allowed to claim that loss against tax at some stage.
The ONLY difference is that a property owner can claim that loss earlier rather than later.
But ONLY if the person is paying other tax.
If they are NOT a tax payer in that year, they get NOTHING back.
It ONLY reduces their total tax bill for that year.
The ONLY difference is that a property owner can claim that loss earlier rather than later.
But ONLY if the person is paying other tax.
If they are NOT a tax payer in that year, they get NOTHING back.
It ONLY reduces their total tax bill for that year.
May 20th 2013, 2:37 am
#34
Lost in BE Cyberspace
Joined: Jun 2008
Location: Brisvegas
Posts: 5,461
Re: Baby Bonus The End
Welcome back.
May 20th 2013, 2:50 am
#35
Daffyd Duck
Joined: Jul 2008
Location: Paradise
Posts: 5,636
Re: Baby Bonus The End
People eho want to own a house should instead focus on saving that 20% deposit by revisiting their weekly expenses and modifying their lifestyle choices if need be.
May 20th 2013, 6:03 am
#38
Joined: Jun 2006
Posts: 4,555
Re: Baby Bonus The End
It is another bizarre subsidy. The main issue is lack of land with infrastructure. Scrap the whole scheme.
May 20th 2013, 6:24 am
#39
Proudly Deplorable
Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
May 20th 2013, 6:34 am
#40
Lost in BE Cyberspace
Joined: Dec 2010
Posts: 14,040
Re: Baby Bonus The End
Whilst some say rents may increase scrapping Negative Gearing there will be more properties on the market to buy as the investor will leave, especially the chinese ones bringing prices down and allowing those who previously couldn't buy the opportunity to dump the rental and buy. Bring it on I say.
Mrs Beoz and I are on the job all day every day for the next 2 weeks. Got to get something out of this silly Aussie tax system. Another silly tax scheme.
With LAHFA gone, baby bonus gone, NG has gotta be next ..... oh hang on .... all those politicians have investment properties.
May 20th 2013, 6:47 am
#41
has lost The Game
Joined: Apr 2005
Location: Chippendale, Sydney
Posts: 8,735
Re: Baby Bonus The End
Mortgage repayments v Rental Income. Less investors in the market. etc etc
Whilst some say rents may increase scrapping Negative Gearing there will be more properties on the market to buy as the investor will leave, especially the chinese ones bringing prices down and allowing those who previously couldn't buy the opportunity to dump the rental and buy. Bring it on I say.
Mrs Beoz and I are on the job all day every day for the next 2 weeks. Got to get something out of this silly Aussie tax system. Another silly tax scheme.
With LAHFA gone, baby bonus gone, NG has gotta be next ..... oh hang on .... all those politicians have investment properties.
Whilst some say rents may increase scrapping Negative Gearing there will be more properties on the market to buy as the investor will leave, especially the chinese ones bringing prices down and allowing those who previously couldn't buy the opportunity to dump the rental and buy. Bring it on I say.
Mrs Beoz and I are on the job all day every day for the next 2 weeks. Got to get something out of this silly Aussie tax system. Another silly tax scheme.
With LAHFA gone, baby bonus gone, NG has gotta be next ..... oh hang on .... all those politicians have investment properties.
And don't forget all of the super funds with huge property portfolios. That's one very good reason that the government moves heaven and earth to keep the property bubble going...
S
May 20th 2013, 9:58 am
#42
Forum Regular
Joined: Mar 2013
Posts: 255
Re: Baby Bonus The End
Just a change of name, and method of payment, and a reduction in the amount, back to much closer to the figure being paid in 2004 before the ALP forced the Liberals to double it. (Wayne Swans words not mine
See the 2004 comment at the end of this)Hey, back on Topic
2004
Maternity Allowance Abolished
“baby bonus” Phased out
$3,000 Maternity Payment Created
2007
Maternity Payment renamed as the Baby Bonus
2008
Labor increased the Baby Bonus to $5,000
2011
Labor introduced Paid Parental Leave
2013
Labor removed the Baby Bonus
Labor created a $2,000 new payment to replace it.
For those who blame the Liberals for the Baby Bonus, we were getting it whichever party won the election in 2004, the only difference being the name. With the ALP it was a Baby Payment, not a bonus
ALP announces baby payment policy
31 March 2004
A Baby Care Payment to all new mothers, payable in fortnightly instalments for a minimum of 14 weeks, was announced as a new policy by the Federal Opposition today.
The tax-free payment, to be funded entirely by the Federal Government, will be introduced on 1 July 2005 and be phased in over five years. The initial payment will be $3,000, which will increase each financial year to reach $5,380 by 2009/10, which is equivalent to 14 weeks’ pay for people on the Federal Minimum Wage (after tax). After 2009/10, the payment will be increased according to rises in the Federal Minimum Wage.
http://www.workplaceinfo.com.au/payr...payment-policy
31 March 2004
A Baby Care Payment to all new mothers, payable in fortnightly instalments for a minimum of 14 weeks, was announced as a new policy by the Federal Opposition today.
The tax-free payment, to be funded entirely by the Federal Government, will be introduced on 1 July 2005 and be phased in over five years. The initial payment will be $3,000, which will increase each financial year to reach $5,380 by 2009/10, which is equivalent to 14 weeks’ pay for people on the Federal Minimum Wage (after tax). After 2009/10, the payment will be increased according to rises in the Federal Minimum Wage.
http://www.workplaceinfo.com.au/payr...payment-policy
WAYNE SWAN, (ALP FAMILY SERVICES SPOKESMAN): Labor welcomes the Government's adoption of its BabyCare payment and we're delighted that we have forced the [Liberal] Government to double what it was planning to pay.
http://www.abc.net.au/lateline/conte...4/s1104022.htm
http://www.abc.net.au/lateline/conte...4/s1104022.htm
May 20th 2013, 10:08 am
#43
Joined: Jun 2006
Posts: 4,555
Re: Baby Bonus The End
Indeed but Howard and Costello hugely expanded middle class welfare with family tax benefits. Politically popular but are they productive taxes? I am a beneficiary so I am not a tax whiner.
But the Baby Bonus hasn't actually gone.
Just a change of name, and method of payment, and a reduction in the amount, back to much closer to the figure being paid in 2004 before the ALP forced the Liberals to double it. (Wayne Swans words not mine See the 2004 comment at the end of this)
Hey, back on Topic
2004
Maternity Allowance Abolished
“baby bonus” Phased out
$3,000 Maternity Payment Created
2007
Maternity Payment renamed as the Baby Bonus
2008
Labor increased the Baby Bonus to $5,000
2011
Labor introduced Paid Parental Leave
2013
Labor removed the Baby Bonus
Labor created a $2,000 new payment to replace it.
For those who blame the Liberals for the Baby Bonus, we were getting it whichever party won the election in 2004, the only difference being the name. With the ALP it was a Baby Payment, not a bonus
Comment from Labor in 2004:
The facts are actually quite interesting
Just a change of name, and method of payment, and a reduction in the amount, back to much closer to the figure being paid in 2004 before the ALP forced the Liberals to double it. (Wayne Swans words not mine
See the 2004 comment at the end of this)Hey, back on Topic
2004
Maternity Allowance Abolished
“baby bonus” Phased out
$3,000 Maternity Payment Created
2007
Maternity Payment renamed as the Baby Bonus
2008
Labor increased the Baby Bonus to $5,000
2011
Labor introduced Paid Parental Leave
2013
Labor removed the Baby Bonus
Labor created a $2,000 new payment to replace it.
For those who blame the Liberals for the Baby Bonus, we were getting it whichever party won the election in 2004, the only difference being the name. With the ALP it was a Baby Payment, not a bonus
Comment from Labor in 2004:
The facts are actually quite interesting
