Forum Replies Created
Tax:
Here is the real story to lighten the Budget discussion! You’ve heard the cry in the last 5 or 6 days from across Australia: “It’s just a tax cut for the rich!”, and it is accepted as fact. But what does that really mean? The following explanation may help.
Suppose that every night, 10 men go out for dinner at La Porchetta’s. The bill for all 10 comes to $100. They decided to pay their bill the way we pay our taxes, and it went like this:
* The first four men (the poorest) paid nothing.
* The fifth paid $1.
* The sixth $3.
* The seventh $7.
* The eighth $12.
* The ninth $18.
* The tenth man (the richest) paid $59.
All 10 were quite happy with the arrangement, until one day, the owner said:
“Since you are all such good customers, I’m going to reduce the cost of your daily meal by $20.” So now dinner for the 10 only cost $80.
The group still wanted to pay their bill the way we pay our taxes. The first four men were unaffected. They would still eat for free. But how should the other six, the paying customers, divvy up the $20 windfall so that everyone would get his “fair share”?
They realised that $20 divided by six is $3.33. But if they subtracted that from everybody’s share, then the fifth and sixth men would each end up being paid to eat. The restaurateur suggested reducing each man’s
bill by roughly the same percentage, thus:
* The fifth man paid nothing (like the first four) instead of $1 (100% saving).
* The sixth paid $2 instead of $3 (33% saving).
* The seventh paid $5 instead of $7 (28% saving).
* The eighth paid $9 instead of $12 (25% saving).
* The ninth paid $14 instead of $18 (22% saving).
* The tenth paid $49 instead of $59 (16% saving).
Each of the six was better off, and the first four continued to eat for free, as now did the fifth – but outside the restaurant, the men began to compare their savings.
“I only got a dollar out of the $20,” declared the sixth man. He pointed to the tenth man “but he got $10!”
“That’s right,” exclaimed the fifth man. “I only saved a dollar too. It’s unfair that he got ten times more than me!”
“That’s true!” shouted the seventh man. “Why should he get $10 back when I got only $2? The wealthy get all the breaks!”
“Wait a minute,” yelled the first four men in unison. “We didn’t get anything at all. The system exploits the poor!” The nine men surrounded the tenth and beat him up.
The next night the tenth man didn’t show up for dinner. The nine sat down and ate without him, but when they came to pay the bill, they discovered that they didn’t have enough money between all of them to meet even half of the bill!
That, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up at the table anymore.
That about sums it up for me. Author Unknown.
Marissa,
If you can afford one, pop down to dick smith or check online and purchase a Creative 1.5GB USB HDD.
Ghost your entire hdd to the usb drive.
In the event that your system fails again it’s simply a matter of formatting the HDD and ghosting the usb hdd back onto the HDD.
Alternatively, puchase a 80GB hdd and do the same.
(my preffered option).Then after you have formatted the infected drive ghost the other back to create your clean backup.
You can have the hdd permanently installed into your machine if you really must, but remember to swap the leads about so that the clean drive is the Primary master. It’s also a good idea to disable the clean hdd in the bios, so if your machine is infected it can’t attack the clean drive.
DD, just for the record,
Ippy is a great place for IP’s but you couldn’t pay me to live there. Development or no development, it won’t change the fact that IPpy is a miserable dry hot hell hole in summer, freezing in winter and about as aesthetically inviting as a volvo.
Milly, i don’t think you’re a hypocrit FWIW and there’s quite a good number of catholic schools around, i attneded one in primary school till grade 4 when i left to a GPS school, but people will buy in the area just to send their kids to the primary school.
I thought iwsctws actually wanted to live there.
There’s a reason birds fly inverted over Ipswich.This all changes if the parcels in question form part of your PPOR.
If that is the case CGT does not apply.
Always tell your bank manager what you want them to do rather than other way around.
Discover their guidleines, different lenders have different requirements, and present it to them so that it’s within their guidelines.
If you have enough security with them they generally will not want to loose your business. If you bank with NAB tell them westpac will write it in the way you want and NAB should get off thier behinds and go to bat for you.
Pssst. You’d be surprised what credit managers will approve on the “say so” of the branch manager.
anything is deductible until you get caught
Just out of curiosity how does he difine a “Millionaire”?
If it’s just a million in assetts, i can teach you that, and i’ll do it for considerably less money too.Thanks K.
No more shall be mentioned.
I presume any Coat Wearing Orangutans will be in touch via the means suggested.That’d be incidently too.
Good to see my high $ edumaction was a complete waste of funds.
Originally posted by iwsctws:Thanks for all the replies folks; now i know the east of Brisbane is out of my price range and that i should concentrate on the north and south. That narrows my search a lot! i probably need a minimum 800 sqm lot tho as am prsent on a quarter of an acre 40 min to the city.
Just one last question about schools….which is the best comprehensive state school (in terms of HSC results) in Brisbane??? (and don’t tell me none of you knows!!!)
Cheers! and thanks a lot again !
lee
You will get opinionated results asking that question. I doubt many queenslanders would care about which school is best, because unless they can afford to book their children in at birth to a private school and then pay a kings ransom to keep them there, there is bugger all they can do, besides moving within the zone of the best school, to affect which school their child attends.
I’m sure if you looked up Queensland Educations Website you would discover which school has the best academic results.
Incedentally we don’t have HSC, it’s QCS which i guess is loosley the same.
Originally posted by aussiemike:I am all for taxation and distribution of wealth from the fortunate to those less fortunate but over the last 10 years I have paid for a lot of children who I have not sired. Time to get some of that back.
Can i ask why?
It’s something i have never understood.
How many wealthy people do you know have become wealthy from being fortunate. Chances are they slugged their guts out or sacrificied early for later in life.I personally think it’s abhorant to to tax one person more than the next.
I’m kinda pissed that i’ve solved it in about 3 minutes.
I always considered myself reasonably intelligent and aparantly “smart people” average about 2 hours.
Maybe i have a keen eye for a trend
Originally posted by darkon:darkon, if you buy an IP first, and never live in it, you will still be eligible for the FHOG when you do buy a place to live in. On your income, it doesn’t sound like you really need to rely on the FHOG anyway.
I didn’t know that, that works out a lot better for me as I could now use the FHOG on a place I would like to move into. Do they have a limit on how many IPs you are allowed to have that you dont move into?
You might like to check this with your Office of State Revenue. AFIK it’s innacurrate, but i’ll happily stand corrected.
Have you thought about approaching the owner and asking whether they would like to sell the place you’re currently occupying? If nothing else you will avoid Capital Gains Tax when you sell.
You couls borrow up to approx $125k inclusinve of stamp duties etc with the deposit you have and avoid costly mortgage underwriting.
If it’s any consolation I’ve never heard of Jenman.
If you purchase a property representing good value for money, especially if your purchasing cashflow positive investments, then the crash will only be of benefit, because you will be purchasing your investment cheaper.
IMH(and economically speaking unprofessional)O the hardest hit by any stagnation or downturn in the property values will be those that have financed lifestyle, rather than investment, purchases with the equity in their PPOR.
Speculative property investors will be hit hard by a downturn, but if you’re a property investor cut out to ride the wave, this downturn will be beneficial in that we’ll be paying less.
Originally posted by kay henry:recoveryman ;O)
As long as the bank keeps lending, I’ll keep buying
Kay,
Would you mind if i add this as my signature.
I wonder how the ATO would view the claim of one deductible trip to area in which investment property is located annuannly.
Do people pay rent in Iraq?
why wouldn’t you just purchase the doer upper yourself and split nothing?
Project finance.
I’m curios to know why you think it is necessary to sell the properties you have to fund the projects.
That’s what banks are for.
You really just need to learn to present the numbers in a way that the bank has no choice but to approve the loan.
