All the tax whingers

That’s me .

Most of our IPs are owned in trusts. They expire in 60+ years when I will be 125+. No CGT hit for me .

I love depreciation because I claim it in today’s dollars plus it helps my after-tax cashflow and it is only clawed back if one sells (not me) and it is in tomorrow’s dollars.

Buildings and fixtures deteriorate whether or not one claims depreciation.

I believe investors should budget for building and fixture maintenance, bit like Body Corporates with their sinking funds, whether or not one claims depreciation. Offsets are a great place to store these funds.

But that is just my thoughts.

 

You laugh now...

 

Please explain?

 

You haven't seen Jurassic Park? All those dinosaurs didn't think they'd come back either...

 

I get it. You saying I am a dinosaur?

OK, I look forward to that day when I come back - to extend/roll over the trusts (and pay no CGT) much to the annoyance of my kids, my grandkids, my great-grandkids, ...

It will be a laugh .

 

If given the choice why wouldn't you be a dinosaur?!

 

I got it

 

A man of culture I see.

 

I don't whinge about paying my fair share of Tax. However, it is extremely annoying when our elected representatives from either persuasion waste the revenue that has been gained through our Tax system.
Just one example :- A Royal Commission was set up in October 2018 to look into the Aged Care Sector. Final Report handed down in February 2021!
How much did this little exercise cost the Taxpayers of the nation?
Blind Freddy could have told them the system needed a major overhaul years ago.

 

Nor do I as long as it is zero .

Recommendations/findings made by a Royal Commission are not binding. Full stop. Not on any government, not on any organisation, not on any individual.

Basically, their recommendations/findings are advisory.

At a guess, $100M

 

ahh yeah!

“The notable over-reliance of our tax system on the nation’s highest income-earners continues to become more marked,” Mr Richardson writes in Deloitte’s Budget Monitor.

The highest-earning 20 per cent of taxpayers will pay 63 per cent of all personal income tax this year, up from 60.3 per cent in 2017-18.

The top 5 per cent of earners will contribute 35 per cent of the tax take, while the top 10 per cent will cough up 47 per cent.

Spare a thought for the “1 per cent” as they’ve been doing even more of the heavy lifting to replenish Treasury’s coffers.

And until there is tax relief, which could be killed by politics, the burden on those earning above $200,000 a year will keep rising and our tax system will become more complicated and less fair.

 

the simple truth!

A report last week by the OECD revealed Australian workers labour under the third-highest income tax burden in the world, behind only Denmark and Iceland.

 

No, the kicker is you dont have to spend the money claimed, I have sold houses after 5 or seven years and spent virtually $0 on maintenance they were still under warrantee. Sell them before they need expenditure. It doesnt even need to go up in value. If you have lowered your cost base by claiming deductions, you have effectively increased yield and profit. If you sell for the same cost as build and not spent the money claimed for depreciation the money claimed for depreciation is profit and taxable. If loan against the house is used to buy shares your 30c depreciation could earn you $2.00 and allow you to take some of it as tax free profit. I dont think anybody spends $1.00 to save 30c. People who say that dont understand how to use property efficiently or that it is not capital growth on the property that makes you rich, it is the CG and earnings on the leverage. Depreciation is just a bonus

 

The aussie tax systems favours heavily taxing incomes (personal income, company profit) above all else which results in lots of money being locked up in low income producing assets (like 2% yield housing) and takes money out of circulation which dampens the economy.

Focussing on taxing assets and transactions over income would give the economy a huge boost as people would have more money to spend and more reasons to spend it.