Merged: The Great Budget Debate.......
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Merged: The Great Budget Debate.......
Before we end up with a plethora of threads, post budget comments here.......
- Age pension increase to 67 years of age..........
- Hobby farm losses to be curtailed........
- Foreign income to be taxed for Australian Citizens and Residents........
- Medicare co-contributions/subsidies to be cut.........
- Unemployment to rise to 8.5%.......
- Everyone on "high incomes" (over $75,000 pa) to be means tested for all benefits........
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Foreign income to be taxed for Australian Citizens and Residents........
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International tax — review of the foreign source income anti-tax-deferral
(attribution) regimes
Revenue ($m)
2008-09 2009-10 2010-11 2011-12 2012-13
Australian Taxation Office - - * * *
The Government will reform Australia’s anti-tax-deferral (attribution) regimes which
ensure that residents can not accumulate income offshore and thereby defer, or even
avoid, Australian tax, with effect for income years on or after Royal Assent to the
legislation. This measure will have an ongoing unquantifiable revenue impact.
These changes implement most of the recommendations of the Board of Taxation
review of the attribution regimes.
To implement the Board’s recommendations, the Government will:
• modernise the controlled foreign company (CFC) provisions and rewrite them into
the Income Tax Assessment Act 1997;
• repeal and replace the foreign investment fund (FIF) provisions with a specific
narrowly defined anti-avoidance rule;
• repeal the deemed present entitlement rules; and
• amend the transferor trust rules to enhance their effectiveness and improve their
integrity.
The operation of these regimes has, over time, become inefficient, and in light of
growing global interactions, poorly targeted. The compliance costs imposed are
disproportionate to the integrity risk to the revenue. The reforms will reduce
compliance costs for affected businesses and help ensure that Australia’s managed
funds remain competitive in global financial markets.
The Government will consult on the implementation of these reforms.
(attribution) regimes
Revenue ($m)
2008-09 2009-10 2010-11 2011-12 2012-13
Australian Taxation Office - - * * *
The Government will reform Australia’s anti-tax-deferral (attribution) regimes which
ensure that residents can not accumulate income offshore and thereby defer, or even
avoid, Australian tax, with effect for income years on or after Royal Assent to the
legislation. This measure will have an ongoing unquantifiable revenue impact.
These changes implement most of the recommendations of the Board of Taxation
review of the attribution regimes.
To implement the Board’s recommendations, the Government will:
• modernise the controlled foreign company (CFC) provisions and rewrite them into
the Income Tax Assessment Act 1997;
• repeal and replace the foreign investment fund (FIF) provisions with a specific
narrowly defined anti-avoidance rule;
• repeal the deemed present entitlement rules; and
• amend the transferor trust rules to enhance their effectiveness and improve their
integrity.
The operation of these regimes has, over time, become inefficient, and in light of
growing global interactions, poorly targeted. The compliance costs imposed are
disproportionate to the integrity risk to the revenue. The reforms will reduce
compliance costs for affected businesses and help ensure that Australia’s managed
funds remain competitive in global financial markets.
The Government will consult on the implementation of these reforms.
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Improving fairness and integrity in the tax system — better targeting the income
tax exemption for employment income earned by Australians working overseas
Revenue ($m)
2008-09 2009-10 2010-11 2011-12 2012-13
Australian Taxation Office - - 215.0 225.0 235.0
The Government will better target the income tax exemption for foreign employment
income, with effect from 1 July 2009. The exemption will apply to income earned as an
aid worker, a charitable worker, under certain types of government employment or on
projects that are in the national interest. This measure will have an estimated gain to
revenue of $675.0 million over the forward estimate period.
The measure forms part of a package of measures to improve fairness and integrity in
the tax system.
Currently, certain foreign employment income earned by Australians working
overseas for a continuous period of 91 days or more is exempt from income tax. The
original intent of this measure was to relieve double taxation, however, in practice
little foreign tax may actually be paid on the foreign income concerned.
Instead, foreign employment income will generally become taxable and taxpayers will
be entitled to a foreign income tax offset for foreign tax paid on the foreign
employment income. This will relieve double taxation for those individuals.
tax exemption for employment income earned by Australians working overseas
Revenue ($m)
2008-09 2009-10 2010-11 2011-12 2012-13
Australian Taxation Office - - 215.0 225.0 235.0
The Government will better target the income tax exemption for foreign employment
income, with effect from 1 July 2009. The exemption will apply to income earned as an
aid worker, a charitable worker, under certain types of government employment or on
projects that are in the national interest. This measure will have an estimated gain to
revenue of $675.0 million over the forward estimate period.
The measure forms part of a package of measures to improve fairness and integrity in
the tax system.
Currently, certain foreign employment income earned by Australians working
overseas for a continuous period of 91 days or more is exempt from income tax. The
original intent of this measure was to relieve double taxation, however, in practice
little foreign tax may actually be paid on the foreign income concerned.
Instead, foreign employment income will generally become taxable and taxpayers will
be entitled to a foreign income tax offset for foreign tax paid on the foreign
employment income. This will relieve double taxation for those individuals.
SFR
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Thread Starter
My points above:
* Age pension increase to 67 years of age..........
* Hobby farm losses to be curtailed........
* Foreign income to be taxed for Australian Citizens and Residents........
* Medicare co-contributions/subsidies to be cut.........
* Unemployment to rise to 8.5%.......
* Everyone on "high incomes" (over $75,000 pa) to be means tested for all benefits........
Are nothing more than the items highlighted by Sky News. I probably missed quite a few....... I don't type all that fast!
* Age pension increase to 67 years of age..........
* Hobby farm losses to be curtailed........
* Foreign income to be taxed for Australian Citizens and Residents........
* Medicare co-contributions/subsidies to be cut.........
* Unemployment to rise to 8.5%.......
* Everyone on "high incomes" (over $75,000 pa) to be means tested for all benefits........
Are nothing more than the items highlighted by Sky News. I probably missed quite a few....... I don't type all that fast!
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Owen.
If you are a professional pilot, or worse, an airline pilot, the Government you voted in never was ever going to do anything to improve either your employment conditions or your income.
The $900 the ATO paid into your bank account recently was only ever a short term loan. The time has come to repay with interest.
Welcome to the real world!
If you are a professional pilot, or worse, an airline pilot, the Government you voted in never was ever going to do anything to improve either your employment conditions or your income.
The $900 the ATO paid into your bank account recently was only ever a short term loan. The time has come to repay with interest.
Welcome to the real world!
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Let me de-spin that for you.
If you earn a wage far in excess of what the average worker earns you are unlikely to need the government to work towards improving your wages and conditions.
It is generally acknowledged by economists that governments ought to go into deficit during down turns in economic activity in an effort to minimize the impact and repay that debt when the economic situation improves.
Welcome to the real world !
If you earn a wage far in excess of what the average worker earns you are unlikely to need the government to work towards improving your wages and conditions.
It is generally acknowledged by economists that governments ought to go into deficit during down turns in economic activity in an effort to minimize the impact and repay that debt when the economic situation improves.
Welcome to the real world !
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Capt Cynical absolutely correct, 49 years of hanging off a prong, tax payer all my life, provided 4 hard working kids for the country (all in the airlines) and SFA for the effort, my super in a spiral dive, my shares up to sh$t, but at least I have my health, (if I had known I was going to live this long I would have taken better care of myself) but glad the poor old pensioners got something (watch Woolworths and Coles put the prices up now) and for all you poor buggers out there who made flying a career, they are going to make you suffer, for no other reason than you got off your ar$e and made a life for yourselves and family and now you will pay thru the nose for it, eg: you blokes are paying more tax and getting less benefits, and the local drug addict is paying no tax and getting all the benefits.... what the????? Im going fishing.
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FFS Teresa take a chill pill, where is the evidence of paying more taxes? This is a Non-event budget quite frankly. Oh yeah some means testing, and possibly no private health insurance rebate, but if you qualify to lose the rebate your tax breaks will be higher?! As for paying more taxes and getting less, umm my tax rate has continously been trending downwards for at least the last decade? Can you elaborate?
I for one am happy that a lot of these middle class rebates will get means tested and wound down, they were a Howard baby and just politically brought on, FFS, the lower income earners need them more.
Cry me a river, go and tell that to entry level factory workers earning close to the minimum wage, thats where I worked to make my money to learn to fly for 5 years, and I can tell you that it is far more suffering than a few new charges on middle -high income earners mate!
To summarise I'd rather be a poor bugger who made flying a career and so called suffer than the far worse poor buggers in the factorys!
I for one am happy that a lot of these middle class rebates will get means tested and wound down, they were a Howard baby and just politically brought on, FFS, the lower income earners need them more.
for all you poor buggers out there who made flying a career, they are going to make you suffer, for no other reason than you got off your ar$e and made a life for yourselves and family and now you will pay thru the nose for it
To summarise I'd rather be a poor bugger who made flying a career and so called suffer than the far worse poor buggers in the factorys!
"As for paying more taxes and getting less, umm my tax rate has continously been trending downwards for at least the last decade?"
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Well, for my two-bobs worth I'm an independent/swinging voter.
As a rule I don't like either major party, though I'll generally vote for whichever is "closest" to my preferences at the time. That happened to be Labor at the last election for several reasons.
I think the current Government has done some silly things, including the cash handouts, and the health insurance changes.
But in fairness, a $200 billion tax revenue loss is..........a $200 billion tax revenue loss. Whether you're Liberal, Labor, Animal, Vegetable, or Mineral. For Liberal voters to pretend that Howard/Costello would somehow magically not be running a very large deficit right now indicates a very loose grip on reality, yet a loose grip on reality is exactly what I'm seeing from many of the die-hards on that side of politics.
I'll be eagerly watching what happens over this budget and the next one......
As a rule I don't like either major party, though I'll generally vote for whichever is "closest" to my preferences at the time. That happened to be Labor at the last election for several reasons.
I think the current Government has done some silly things, including the cash handouts, and the health insurance changes.
But in fairness, a $200 billion tax revenue loss is..........a $200 billion tax revenue loss. Whether you're Liberal, Labor, Animal, Vegetable, or Mineral. For Liberal voters to pretend that Howard/Costello would somehow magically not be running a very large deficit right now indicates a very loose grip on reality, yet a loose grip on reality is exactly what I'm seeing from many of the die-hards on that side of politics.
I'll be eagerly watching what happens over this budget and the next one......
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I think the factory example is rather a poor one to use seeing that I'm currently working in a factory packing products getting paid $45 per hour which I feel is a nice rate. As I've just complete my CPL and multi engine instrument rating and I'm doing the instructor course I'm being told that I am lucky to see $30 a flying hour so I realise that as we move up the ladder things surely improve but from where I'm standing it's looking harder and harder to reach where some of you guys are currently.
I proudly voted Liberal as I stand for a more capitalist idiology and feel that the current government stands for a socialist view in which the people who work real hard to make things better for themselves and there families are punished.
After all those $900 that where handed out will be quickly forgotten by most as we get reminded of the debt this country is in and the part that we must play in getting it out of debt.
Andy.
I proudly voted Liberal as I stand for a more capitalist idiology and feel that the current government stands for a socialist view in which the people who work real hard to make things better for themselves and there families are punished.
After all those $900 that where handed out will be quickly forgotten by most as we get reminded of the debt this country is in and the part that we must play in getting it out of debt.
Andy.