“If the rich are happy, who could ask for anything more?” #Budget2014

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The Pink Mafia at the GayBC reckon there’s winners and losers in the 2014-2015 federal budget.

Winners: Military, medical research, mining and roads industries;
Losers: Foreign aid, working families working families working families, senior citizens, young people, university students, people with disabilities, low income earners, Indigenous peoples, government broadcasters and the environment.

The budget was delivered yesterday by Treasurer Joe Hockey. Hockey is no stranger to hardship, having to scrape by on a mere $365,868p/a, supplemented by the meagre income generated by his investment banker wife.

STEAL

The rich, then, have much reason to celebrate the budget — and are doing so. As for the rest, Bridie Jabour notes that Cutting off dole to young people ‘could lead to surge in crime’.

Bad news for bludgers; Good news for the charity and crime industries but.

Whatever.

Moaning Minnies and Negative Nellies in Melbourne have organised a rally: “If you’re feeling angry, terrified or just nauseous at Abbott’s Budget – join thousands in Melbourne who feel the same: Sunday May 18, 2pm, State Library.”

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About @ndy

I live in Melbourne, Australia. I like anarchy. I don't like nazis. I enjoy eating pizza and drinking beer. I barrack for the greatest football team on Earth: Collingwood Magpies. The 2014 premiership's a cakewalk for the good old Collingwood.
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2 Responses to “If the rich are happy, who could ask for anything more?” #Budget2014

  1. @ndy says:

    Budget pain? Not for millionaires who pay no tax
    Peter Martin
    [Fairfax]
    May 13, 2014

    “Pain all round” will be the rallying cry of the night. Joe Hockey says his first budget – tonight – will hit everyone from high earners to politicians to Australians too poor to pay to see the doctor. All of us will have to “contribute budget repair”.

    Except that we won’t.

    The latest tax statistics show 75 ultra-high-earning Australians paid no tax at all in 2011-12. Zero. Zip.

    Each earned more than $1 million from investments or wages. Between them they made $195 million, an average of $2.6 million each.

    The fortunate 75 paid no income tax, no Medicare levy and no Medicare surcharge, even though 60 of them had private health insurance.

    The reason? They managed to cut their combined taxable incomes to $82. That’s right, $1.10 each.

    Cutting taxable income that far doesn’t come cheap.

    Forty-five of the uber millionaires claimed a total of $64.4 million for the “cost of managing their tax affairs”. That’s a staggering $1.4 million each. (As a point of comparison an entry-level H&R Block consultation costs $49.)

    At face value the figures suggest these super-high earners were prepared to spend an unlikely half of their incomes on tax advice. A more likely explanation is that they received far greater incomes than they reported and spent only a portion on tax advice.

    It wasn’t wasted.

    Ten of the millionaires claimed between them $1.3 million in work-related deductions, for things such as car expenses and clothing. Ten claimed a total of $5 million for donations and gifts, a category that includes political as well as charitable donations.

    And they ran loss-making businesses.

    The 30 who were in business reported total business income of $121 million offset by expenses of $122 million. Those who ran farms carried over $61.5 million in earlier tax losses and lost an extra $3 million in 2011-12.

    When it came to investing they bought up big on shares that paid so-called franking credits on which they could claim tax deductions and stayed away from those that did not. They received $18.7 million in franked dividends in 2011-12, and only $565,000 in dividends that were unfranked.

    On Tuesday night these 75 will escape the deficit reduction levy applying to taxable incomes of more than $180,000. Their taxable incomes are closer to nil than $180,000 even though they are well off enough to afford outrageously priced tax advice. And they’ll almost certainly escape the extra charge for bulk-billed visits to the doctor. About the only thing they won’t escape is higher petrol prices, although it should be noted that five of them claim work-related car expenses, so they might be able pass those costs on to the Tax Office.

    It isn’t only millionaires. Tax Office figures show there are 1095 Australians earning in excess of $150,000 who pay no tax. Half of them sought tax advice and shelled out an impressive total of $98 million, which works out to $223,000 each. Their biggest lurk is negative gearing. Most lose large sums on properties they rent out in order to destroy their taxable incomes, hoping to make it up later when they sell the properties for a lightly taxed profit.

  2. Pingback: Australian Treasurer Joe Hockey supports free higher education (1987) #bustthebudget | slackbastard

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