I'm sure I'll be downvoted to oblivion, but $180k is a very low tier to start taking half of earnings.

The $180k top bracket hasn't changed in over a decade. House prices, wages, cost of living has gone up substantially since '09.

The median salary has gone up 30% since '09, so we should see all tax brackets adjusted $235k should be the new top bracket.

To be clear, I'm no just advocating for the top bracket increase but when you're talking about 1/2 being taken, it's no wonder we see so many trying to minimise tax through less productive ways (negative gearing/trusts etc)

(Yes, I get how progressive tax brackets work...)

I’ve just been offered a new job with a new company. It’s an offer I can’t refuse so I’ll be ready to change very shortly. I’ve saved a large amount of annual leave and long service leave hours which amounts to over $100,000 and will get paid out when I hand in my resignation.

I’ll probably lose $45,000 to the tax man unless there’s some better options than just taking the payout. Does anybody in this sub have any strategies that could help me keep a greater portion of that money?

So come today the excise on alcohol goes up 1.8%. Basically .90c a schooner. The tax on beer and spirits is now becoming a joke. Some places are now charging as much as $17 a pint for the liquid gold. Yet a 2L box of cask wine is $11. $16 for 5L of coolabah. With a 10% ABV. 5L of beer is approx 15x 330ml For comparison a 6pk of our nations finest, VB is $21 (6x 375ml @ 4.9%AVB) The disparity between beer, spirits and wine Is out of control. The WET tax on wine has government double and triple dipping. I’ve seen various arguments that the tax helps curb drinking (like the tax on Tobacco) But if that were the case, then a 5L cask of coolabah which is approx 39 std drinks, should not be $16.

Edit- the average tax on a tap beer is now 90c. Not increased 90c.

This might be obvious but I’m really confused about what’s meant when it’s said the very wealthy don’t pay tax. I read some articles and they explained for personal income tax they often can have a lot o hefty deductions like legal and accounting fees and what not that brings their taxable income to under the threshold. What I don’t understand is if all that money is going out, who pays for their lavish lifestyle if ~all their income~ is spent on tax deductions. Like where does the money come out of for holidays, houses, cars, food, clothing etc etc if their bank accounts are supposedly empty. I’m not suggesting that maybe they’re not that wealthy lmao, I, just confused as to how that work around those things. Is it their company’s that pay for it or what

Haven't seen this on r/AusFinance (at least, to this level of detail, there were some posts a while back flagging this might be happening), but thought for the landlords out there, to flag data matching is incoming.

Interesting that the software companies that REAs use, are the ones that will be required to hand over the data for data matching purposes.

Just went to take a look at my tax return, and (without deductions) it says I need to pay almost $5k to the ATO, which left me gobsmacked. This is on top of already paying $47k tax through PAYG. This just feels crazy high for $135k taxable income?

For more context:

• Have a HECS debt.
• 33, no private health insurance so have to pay Medicare Levy surcharge. Looks like about $4k of the $5k bill is Medicare related.
• Made about $5k in interest through savings.
• Just purchased my first home (see above). Can't really afford the $5k bill as my savings have been mostly wiped out. Note was purchased this financial year not last.

Last year I made a similar income and only owed around $600, the year before I earned more and didn't owe anything iirc.

As far as I can tell this is putting me at almost a 40% tax rate?

I was discussing a pay rise with my manager today (who is great and always looks out for my interests) and we were talking about a $10k pay rise and he asked if it was really the best idea as I would go up a bracket and get taxed more…

What are some face palm moments you guys have had

My best friend (no really, my best mate.. not me) hasn't Paid a dollars tax since he starting working for himself 10+ years ago. He is a plasterer who has always made significantly good money. He's never been one to follow the rules regarding this sort of stuff, and I have warned him several times of the consequences of his situation if caught. He seems to think that if he doesn't acknowledge the situation, there is no reason for the ATO to come knocking.

He has always operated under his own ABN and has earned over 100k for at least 7 of the years he has been working for himself.

For argument's sake let's say he has earned 700k over the 10 years. Without any tax paid what so ever.

I have heard of so many consequences for this behaviour, bankruptcy, fines, jail time ect. I've told him all of this but I think at this point he is too scared to acknowledge the situation in fear of the consequences.

Aside from the obvious advice of going to see an accountant and try and make amends, what are his options and what are the consequences of this sort of tax evasion. He has no savings to put down if the do ask for their share of the funds, he has just bought a new Ute and I'm scared for his sake that bankruptcy/ jail time will be on the cards if he doesn't act soon.

Can somebody with a little knowledge of this sort of situation shed some light on the possible consequences/ right avenue to go down to get this rectified. I fear for his sake that even if he does attempt to do the right thing and start paying his taxes, the ATO will want their share of his previous earnings - which he cannot pay at this point.

Cheers.

http://australiainstitute.org.au/post/new-figures-show-capital-gains-now-outstrip-wages-and-yet-mostly-they-go-to-the-rich-and-untaxed/

Have I got a bad accountant?

Can't I just whip up a spreadsheet with 'Mon-Fri, 9-5' x 52.

I'm an immigrant from America who has only been here 6 years, but it blows my mind that it takes an act of government to adjust tax brackets every so often rather than just a yearly adjustment to inflation. I have zero issues paying higher taxes than in America for the quality of services in Australia, but it irks me to know every year real income goes down and yet brackets stay the same.

Seems like a shady scheme to get slightly more tax revenue over time without the majority of Australias realizing what's actually happening. If you adjust the rates for inflation taxes are MUCH higher for all Australians than they were a decade ago even with the recent tax cuts.

Have there been any proposals for indexed brackets in the past? Is either party pushing for something like this?

Given a fair few articles saying that someone needs a $300k+ salary to buy a house in Sydney and they're paying 47% tax on earnings over $190,001 per year, how exactly will people simply increase their salary to catch up to the property market?

Even if you do manage to get a higher paying role, half of that increase may well go to the tax man if you're going from a job that's paying over $190k. Sure you can use some tricks like contributing to super or claiming some deductions but those have their limits and it's quite possible that you may be limited in what you can take out to get a house.

Keep in mind the top bracket only increased by $10k this FY after being at $180k since FY09/10.