Exploiting Bracket Shifts

Over the next 3 years, the ATO will be reducing income taxes. Brackets will shift outward, allowing higher income at each tax rate. Ideally it is best to have income taxed at next years lower rate if the income can be defferred.

The end of the financial year historically sees investors looking to off-load investments. But before doing this it is important to be aware of possible Capital Gains Tax (CGT) implications. The end of this financial year may not be the best time to look at selling shares or other assets as you may be hit for a large CGT bill, depending on your other earnings and the length of time you have held that asset. Investors should delay asset sales until the new financial year. Instead of selling June 30, sell July 1. You will get a lower tax rate and a year extra to pay your bill.

Anyone considering a redundancy or retirement payout should negotiate with their employer to pay them after July 1.

If you’re expecting a bonus, you may also be able to defer it until after June 30. Bonuses are taxed according to the date they’re paid, so ask your employer if it can be delayed until the new tax year.

Don’t get paid in advance if you’re taking holiday or long service leave that straddles the change of financial year.

If you have a private company, it may be worth waiting until the new tax year to pay dividends. Investors in products like bank bills can ensure any new investment matures after June 30.

Investors who know they are going to realise a big capital gain could take out an investment loan early in the financial year. In the same year that they made the gain, they could claim a tax deduction for the interest paid on the loan and then prepay the following year’s interest, giving them two years’ interest deductions against their taxable income when calculating the gains tax.

Many investors also split the sale of assets over two tax years to keep the tax rate down.

The other method of deferring income to next year is boosting your tax deductions this year. A tax deduction this year could be worth 43.5c. Next year it will be 31.5c.
Pay for any necessary work expenses now, rather than putting it off until the new financial year. If you have bills, pay them before the end of the financial year instead of the due date in the New Year.

Attend to repairs and maintenance on business equipment or cars, rental properties et al, in the final weeks of the tax year.

Income protection insurance is tax-deductible, so your annual premium should be paid in full by the end of the tax year.

If you are able to make a tax-deductible super contribution, this is a good way to reduce your taxable income this year. The self-employed and other “eligible persons” (anyone who earns less than 10 per cent of their income from employment) can claim a full tax deduction on the first $5000 they contribute each year, plus 75 per cent of any excess up to age-based limits.

http://www.posigear.8k.com
Positive Geared Share Investing

dont mess around with fibro, especially with a baby. either knock the house down or leave it be. nobody will buy a fibro house but you may be able to have it removed at their cost

http://www.posigear.8k.com
Positive Geared Share Investing

yes Trish, better to spend $2k on furniture rental than on a plasma (which is likely to get flogged from an empty house)

whitegoods however may tempt a 1st home buyer.

http://www.posigear.8k.com
Positive Geared Share Investing

I would buy $10m worth of AUDJPY ($200k margin required) which would pay me about $565k a year in positive carry and another $60k in interest…..a mere $625k p.a or 62.5%

http://www.posigear.8k.com
Positive Geared Share Investing

Your rude and arrogant response shows your lack of maturity and inexperience. I can just imagine the childish tantrum you threw when you saw what he did. Wait till you see who the real ‘idiot’ is here.

“Would you pay for something without knowing the price?”

OK, here is a little nugget for you.

QUOTES ARE A SCAM !

Got it? I wont do any job unless its quoted. Why? When we do a quote, we estimate how much time and materials are required, then add 25% for things that *might* go wrong. Getting the picture? A $1,000 job will be quoted @ $1250, or if the tradesman doesnt need the work $1400. If its a crappy job he will quote $1600. Lets say I have an apprentice. I will quote a job @ 8 hours @ $65 an hour. When I actually do the work, me and the apprentice may spend 3 hours there. Thats 6 hours total. 2 hours bonus!

Now if instead you just arranged to get someone out and said, “whats your rates, ok, do this and leave me the bill” you may find the end price is around $800. See that, $1400 down to $800. If he has an apprentice, he may charge $35 an hour for him. So they may be there 3 hours and charge you $65 x 3 + $35 x 3 = $300 in labour, as opposed to $65 x 8 + 25% = $625.

So in response to your question, would I get work done without knowing the price? HELL YES !

“If you think making a mess is what tradesmen are paid to do then I hope you never do any work for any of the members on here… or for anyone actually.”

I hope to god I never do any work for someone like you. You are what is called a “problem customer”. They have no idea what they are doing and throw a tantrum when things go wrong, and unpaid tradesmen is the result. I have won numerous awards for my workmanship so my experience is documented. Is yours? Pay the man, or you may find yourself in the dark.

“Sorry Mr Experienced, but how many normal everyday people out there do you know that are experts in getting kitchens renovated?”

You dont seem to get it. That is YOUR problem. If you dont know what you are doing, hire a project manager. Dont blame others for your incompetance.

“For your information, he came and gave me the quote for the work BEFORE the tiles were laid.”

Bingo! So you stuffed up. Tip for you (whoever said common sense was common?)…..TILES GET DONE LAST ! You do the nice shiny things AFTER all the other trades have finished drilling out concrete. Duh!

“And you’d have to be an idiot not to be able to tell the difference between newly laid+grouted tiles and old ones. And evem if the tiles were old it doesn’t give him a green light to go and create a mess on them.”

Maybe he thought the tiles were old. maybe he forgot. You certainly didnt tell him to be careful. If you had half a clue you would have put something down yourself. Some quotes dont include cleaning up, as being paid $65 an hour to clean is dumb. But then some developers dont have a clue do they?

“Sorry to seem rude and pointing out the obvious, but you’re an idiot. You’re saying YOU would take ME to court? On what grounds?”

very rude. Its obvious that someone here is an idiot. lets see. Your inexperience caused the problem. You didnt pay your bill. Accept that you have to share the blame and put it down to experience.

“Well who else is to blame in this instance? Ever heard of plastic drop sheets? Did you even look at the photos?”

Yes I did. I dont know what the agreement was for cleaning up. Like I said earlier, it is better for you to clean up the mess rather than pay him to at $65 an hour. Or do you earn $120 an hour and can afford it? Quit ya friggin whining and count your blessings.

“The least you could’ve said was that what he did was wrong and that it was unfortunate.”

How do I know it was wrong? We only hear your side of the story. he made a mess, big deal. he hit a water pipe, his problem. make him pay for damage in that case as he was negligent.

“My girlfriend and I are only in our 20’s and we don’t know better yet. That’s why we got ‘professional qualified tradesmen’ to come and see what needed to be done, provide us with a quote and perform the job.”

Just because you get tradesman to do the work doesnt mean you did nothing wrong. it is YOUR job to ensure all work is done in the correct order. You failed to do that and stuff-ups is the result. The scratched tiles pictured are clearly not the ones in the previous photo. Telling a fib perhaps?

http://www.posigear.8k.com
Positive Geared Share Investing

Im doing a bathroom reno and just bought a fully enclosed massage shower from the auctions for $880. Now compare this to Bunnings price for a BASIC shower (glass door, base, sides & wall panels. mixer, shower head not included) of around $800…….and remember that you dont need to waterproof, dont need to tile inside the shower…..plus you have an exhaust fan, light, radio, phone, massage jets, 2 shower heads and a seat

extra cost you say? more like a SAVING overall!

http://www.posigear.8k.com
Positive Geared Share Investing

I just bought a place in Brisbane and am looking for more.

Overvalued? how so?

http://www.posigear.8k.com
Positive Geared Share Investing

“you are obviously not a happy chappy.”

firstly, dont think that i am blowing a gasket here. I am quite calm. Just wish to show people Xmas is about giving, not taking…thats all.

you assume that because I object to a thread which is offensive that I am unhappy?

I showed this thread to some others, and they were appalled. Christmas spirit zapper!

This thread was not humerous by intention or result. So you can stop with the “surprise, just joking!” line. It doesnt work.

lets firstly discuss the topic.

“create wealth over Xmas”

Hmmm I thought. This will be interesting. What could you possibly do in such a short period that would create wealth? No answer. Obviously what you meant was saving money, not creating wealth. All the posts concur with this diagnosis. So lets restate the topic as “how to save money over Xmas”

Ok, thats not offensive…..yet.

There were even a few NICE comments like:

“Support the tree of joy in shopping centres, it will come back to you 10 fold.”

“Give a gift to the old couple in your street, they might leave their house for you in their will, opps!!”

we can assume the last part was in fact humerous. but here the Christmas spirit and humour ends.

From here it turns into a “how to swap Christmas happiness for money” thread, which I found quite offensive, having grown up with a tightwad family who were self absorbed, money hungry, selfish individuals who made Xmas a time of unhappiness for everyone they knew. So when I see others promoting such actions, you bet it offends me. For the last 6 years I have spent Xmas with my partners family, and these people taught me the meaning of Xmas. They are selfless, warm, giving and generous, and make Xmas something to look forward to. So yes I am VERY happy thanks. Xmas spirit alive and well here!

Then I read comments such as:

“If u r working and others are playing u r twice as well off …”

“Get rostered on to work Christmas Eve, Christms Day, Boxing Day, New Years Eve and New Years Day.”

what does your family think about that? you have not only sold your Xmas happiness, but theirs as well. Selfish me thinks.

“Tell all your family and friends that you have just purchased another property and they will not be getting any gifts from you this year.”

yeah, real funny that one. My uncles use to use that excuse, got no presents for 10 yrs.

“Keep your wallet in your pocket.”

aka “be a tightwad”

“Buy family and friends the alcohol YOU like, then invite them to your place for Christmas drinks.”

theres that theme again, take instead of giving.

“Ask everyone to send their gift for you to someone else who is on your christmas list. (Saves on junk collecting at your house).”

well lets just bypass Christmas shall we? In fact, lets just sell our soul, since we find no joy in Christmas. Apparently money is all that matters to you people.

emcdonald was the only person who suggested going to extra effort to save money, while giving to others. this is true Xmas spirit. ever heard of the saying “its the thought that counts?” well this person is a good example.

the rest of you were all looking to take from others. whats worse, you could not even be bothered considering what would make others happy, or whether your actions would make them unhappy.

good on you emc. the rest of you should be ashamed of yourselves.

I will spend Xmas NOT working, but instead enjoying the company of family and friends, who will display genuine warmth and giving. I will happily smother the bottom of the Xmas tree, and provide the best Xmas meal possible without thought of the costs.

This is what life is about, not how much money you have in the bank. But since this thread is on an investment forum, I guess I had to expect the outcome.

some of you I suspect will be lonely and sad, and I pity you.

MERRY CHRISTMAS

[biggrin]

http://www.posigear.8k.com
Positive Geared Share Investing