warning to the people who have saved there money over the years
after getting slugged with a 14k tax bill for the last financial year, I got a letter from the ATO today telling me my investments make too much money and I have to pay PAYE tax now on it. What the hell. I am only 52 and have to support myself and my family as (I live on the money that my investments make) I cant work due to injury's . The money I have I made by leaving school at 15 and working my guts out in the Pilbara and whilst I had fun up there I saved my pennys,
I have mates that did the same but wasted all their money and are on disability pensions or the dole now, so much for preparing for later in life, I would be better off going to the casino with my money betting it on the toss of a coin, if I win I double my money, if I lose it makes me entitled to government services. what a joke no incentive for preparing for later life
catchalittle
Posts: 1875
Date Joined: 04/09/08
yep that sucks big time
yep that sucks big time
Nathan
Stoinka
Posts: 412
Date Joined: 02/09/06
Sell up
and go live overseas, that's what I would do ;-)
damo6230
Posts: 2029
Date Joined: 07/06/08
only because
its more acceptable for men to wear dresses cause I know you do ....
ha ha
Bring on Monties 14 :)
Matt T
Posts: 875
Date Joined: 19/11/07
Tax sux
Yes mate, paying tax sucks. But you only really pay lots of tax if you earn lots of money - if your investments are making your income so large that you have to pay a heap of tax - great investments!
Maybe speak to a financial planner or good accountant, they are worth their weight in gold. In my experience anyway.
If your income is equivalent to the dole or disability and you are getting hit with huge tax bills then there is something seriously wrong too mate.
uncle
Posts: 9507
Date Joined: 10/02/07
be careful
who you talk to
all aggressive fish love bigjohnsjigs
Jason P
Posts: 521
Date Joined: 16/02/13
ATO sucks big time
The ATO got me when "they the ATO" made the mistake of overpaying me, then 2 yrs later asked for it back plus interest, I appealed that it was unreasonable to ask for interest on something that was their mistake, to no avail.....had to give in, as other options were more expensive with little chance of winning.
hoping Karma kicks in to those D@#$heads.
DM306
Rob H
Posts: 5817
Date Joined: 18/01/12
My investments dont make much
My investments dont make much money but I have to pay tax on them?
And PAYE will save you getting "slugged with a $14K tax bill" at the end of the year wont it?
Personally Id have rather paid the $14K at the end of year + a few months grace
Give a man a mask, and he'll show you his true face...
The older you get the more you realize that no one has a f++king clue what they're doing.
Everyone's just winging it.
bradz
Posts: 693
Date Joined: 29/10/07
easy solution
Easy solution...dont make as much money.
I did then the best that I knew how. When I knew better, I did better.
jighead
Posts: 728
Date Joined: 03/02/12
Great solution.
Great solution.
fisharoo
Posts: 297
Date Joined: 02/07/11
Gotta be earning a decent
Gotta be earning a decent amount to be paying 14k in taxes. Hope to be in your shoes one day:) much better off living off the pension IMO. Also think about the the poor sods that I hear about in news about how they invested their hard earned savings to be shafted in the end by some dodgy investment group.
also you are making money off your assets, which will always be there when things goes to shits.
You' ve done well. Now you can sit back and wait another bloody week before the weather gets better and catch some fish:)
that said, 14 Stella's does hurt when you think of it:)
petermac
Posts: 2946
Date Joined: 03/03/10
you make some points
simple fact is I have my money in a term deposit , not game to use a financial adviser to many sad story , rather bit is in a safe bank I have probably paid more in tax than gina rhiehart (who I have known since I was 12)
petermac
Posts: 2946
Date Joined: 03/03/10
to tell the truth
In all honesty the reason I haven't seen a financial advises is because there are to many horror storys , if I deposit over 1 mill with the bank of Asia I will get 3.2% interest and wont be paying tax in australia
Rob H
Posts: 5817
Date Joined: 18/01/12
you will be, and if you arent
you will be, and if you arent you are likely to be paying the tax plus a penalty
Give a man a mask, and he'll show you his true face...
The older you get the more you realize that no one has a f++king clue what they're doing.
Everyone's just winging it.
TorquenFish
Posts: 321
Date Joined: 30/12/12
Not really mate... 14k in
Not really mate... 14k in tax equates to around 65-70k/pa salary. While that's good money it's hardly big bucks.
sea-kem
Posts: 15043
Date Joined: 30/11/09
If you get a $14K tax bill
If you get a $14K tax bill means you haven't paid enough in tax for what you've earnt. So you pay your PAYG quarterly amount whatever you or the tax office comes up with and then the differnce you pay or get refunded at the end of the tax year. So a $14K bill means a hell of of lot more than $65-$70K yearly income. To make it less painfull pay more through the year like I do. You must pay the piper one way or the other. There's no getting away from it. So you're no Robinson Crusoe Petermac. I'm offshore at the moment making a good dayrate and know most will go in tax or I'll buy some new toys and tools for my w/shop. There's ways around it ;)
Love the West!
TorquenFish
Posts: 321
Date Joined: 30/12/12
Not necessarily... If his
Not necessarily... If his income in purely from money in the bank or stock dividends (interest) or from an investment property (rent income, capital gain etc) then he may not pay lodge a regular income (and therefore not pay tax weekly/fortnightly like most people), which would result in gettting a bill for his entire years tax at the end of the year. If this is the case and he is earning say 65-70k in interest from his savings then it would result in a tax bill of about 14k. Obviouslyy though to make around 65-70k just from interest you're going to need a lot of $$ in the account (say 1.1 m at current interest rates).
sea-kem
Posts: 15043
Date Joined: 30/11/09
Well if that's the way he
Well if that's the way he operates then he a bloody idiot. That's why they invented PAYG so fools like him didn't whinge when they got a big tax bill. I don't actually mind this system. We can all go back to the bad old days of provisional tax and watch the sooks come outta the woodwork then. Like I said make it easier on yourself, pay more through the year.
Love the West!
sea-kem
Posts: 15043
Date Joined: 30/11/09
Yep you make the money you
Yep you make the money you pay the tax. No point whinging about it. I work for myself and know all about the tax man and getting slugged. You need a wiley accountant and you need to ask them the right questions too.
Love the West!
johnno67
Posts: 408
Date Joined: 12/03/10
Lucky
Your lucky you are in a country that gives you the opportunity to make such money not like many countries in the world I have my own business here In Perth and pay a lot of tax but I make a lot of money so to me all good and when it's time to sell my business and I show the money I make and the tax I have paid this will be the benefit to me we have good education and health systems so all good
meglodon
Posts: 5981
Date Joined: 17/06/10
Investments, ask Alan Bond
Go and ask good ole Alan Bond about investments and the tax man, maybe he can put you onto a good mate in Switzerland who can look after it for you.
petermac
Posts: 2946
Date Joined: 03/03/10
not really griping but
i have a mate coming to watch the footy on Saturday he hasnt struck a blow at work for 15 years he is a good bloke but fucking lazy lives off the dole (ow wonder I never gave him a job hard to sack mates)
little johnny
Posts: 5362
Date Joined: 04/12/11
i wish thats
all i pay in tax.i have worked whole life since 15 also . 46 now, 4 kids at home still. fact of life (tax), good to see your supporting your mates on dole . term deposit 14 k tax .your doing fine,pay out by the sounds .man you are doing alright .some of our tax money goes to the right place.(i wish more went to pensioners) .a lot worse than me you and everyone else .be grateful for what you have.sad to say everyone works and saves hard ...LIFE .....EARN MONEY..PAY TAX.
Saulty2
Posts: 659
Date Joined: 28/05/10
thats a bit rich John
more like fished ur whole life , and put an appearance at work
and as for 46!yeah right LOL
little johnny
Posts: 5362
Date Joined: 04/12/11
pmsl
meglodon
Posts: 5981
Date Joined: 17/06/10
Death and Taxes
They are two sure things on this earth
Skull
Posts: 630
Date Joined: 03/01/12
Thieves
I am hearing you, I pay heaps in tax and always have, don't mind paying it if your earning it, but I also got a bill saying I owe extra from 2 years ago, tried to work it out, but can't beat them the thieving bastards.
I am setting myself up so when I retire I will deliberately get the pension, feel like I deserve to get some back.
Skull
Rob H
Posts: 5817
Date Joined: 18/01/12
The way its heading the
The way its heading the pension is going to be harder and harder to access.
Give a man a mask, and he'll show you his true face...
The older you get the more you realize that no one has a f++king clue what they're doing.
Everyone's just winging it.
pelagicyachts
Posts: 1322
Date Joined: 23/02/11
Peterbe very careful
Peter
be very careful investing in "Asia" to get a tax free return - fact is income earnt offshore is still deemed taxable here whether it is re-patriated or not - additionally you carry foreign exchange risk on the principal - the AUD has moved up and down in a 13% range over the last 12 years -that is you may earn 3.2% in interest but potentially pick up or lose 13% in the principal when you swap it back. Before anyone suggests that it may be a good idea to play around with the FX exposure (surely you have seen the ads "make money from home trading FX like the big banks do") forget about it -been in the industry for 20 years, the only people making money is the brokers telling you to make money using their platforms....
sorry about the rant! - if you dont already find an accountant that you get along with and has an interest in your situation - personally i dont rate financial planners, its nothing personal as there are many good ones out there but the majority are just sales people - taking your lifes work and trying to fit it into their sales template so they can sell you a product and charge you a % of the balance every year - additionally they will want to see you every year to "review" your investment choices - for this pleasure they will obviously charge you a fee ..... I am a qualified financial planner, fully intended to leave the industry i work in to move into financial planning - the more i looked into the industry the more i realised i wanted nothing to do with it! - oops sorry about ranting again - happy Friday!
holth
Posts: 812
Date Joined: 09/10/06
your sure your not Tony
your sure your not Tony Halliday in disguise.
pelagicyachts
Posts: 1322
Date Joined: 23/02/11
who is Tony Halliday? its
who is Tony Halliday?
its not me - was just throwing my 2 cents in like everyone else :-)
holth
Posts: 812
Date Joined: 09/10/06
not you mate. the thread
not you mate. the thread starter.
pelagicyachts
Posts: 1322
Date Joined: 23/02/11
haha ok -
haha ok -
Saulty2
Posts: 659
Date Joined: 28/05/10
not wishing to hi jack
but is he still around ?certainly colourfull character
dumper
Posts: 1027
Date Joined: 03/04/08
I've thought this since day
I've thought this since day dot. Played afl, friends with gina Reinhart, tells everybody how much he's worth, talks about all the fish he used to catch but can't seem to catch anything these days.
surfhead
Posts: 109
Date Joined: 25/06/13
Pay your fair share
Just pay your taxes like the rest of us and stop whinging
new age
Posts: 330
Date Joined: 15/03/13
"shut up and fish" is how
"shut up and fish" is how to put it eloquently
new age
Posts: 330
Date Joined: 15/03/13
We all pay a lot of tax,
We all pay a lot of tax, respective of our incomes. Thats because we get all kinds of services like roads, health care, and envrionmental protection like waste disposal just to name a few.
jighead
Posts: 728
Date Joined: 03/02/12
And shit loads of people who
And shit loads of people who don't work.
championruby
Posts: 459
Date Joined: 20/01/11
As soon as I saw the title I
As soon as I saw the title I could tell it was another tax rant .....posted under Fishing discussion..Give it a break mate, we all pay tax.
If you are silly enough to think that investing in Asia will give you tax free returns go right ahead and learn the hard way.
Go see an accountant who can help you structure your investments better. Using super concessions probably your best bet without knowing to many details
Rob H
Posts: 5817
Date Joined: 18/01/12
As said by others above if
As said by others above if you are trying to do this yourself Peter with the limited financial knowledge you've displayed here then you are burning $100 notes.
Like the Lawyers say-"a lawyer who represents himself has a fool for a client"
Dont bother with Financial Planners, get a respected and established accountant who charges you to put a plan together.
If he does it for free then just like mortgage brokers etc he isnt working for you.
Give a man a mask, and he'll show you his true face...
The older you get the more you realize that no one has a f++king clue what they're doing.
Everyone's just winging it.
chris raff
Posts: 3257
Date Joined: 09/02/10
Massage parlour .. good cash
Massage parlour .. good cash business , you can claim expenses and run it at a deficit and give FW members mates rates ..
“Intelligence is like a four-wheel drive. It only allows you to get stuck in more remote places.”
sea-kem
Posts: 15043
Date Joined: 30/11/09
Love the West!
Willlo
Posts: 1490
Date Joined: 07/10/11
Grab a tissue mate and blow
Grab a tissue mate and blow your nose mate. You make it you pay it doesnt matter how it comes in everyone has to pay.$14000 !!! If thats all i had to pay i would be happy.
Call Sign - BZ785
Haynes Hunter Prowler CC
sea-kem
Posts: 15043
Date Joined: 30/11/09
Love the West!
Lastchance
Posts: 1273
Date Joined: 02/02/09
Yep, nothing but another name
Yep, nothing but another name dropping brag session for Daddy Mac.
Snags
Posts: 558
Date Joined: 07/05/09
Going by the boys toys
Going by the boys toys thread some of you guys deserve all the tax you get!
Shark1
Posts: 1086
Date Joined: 21/05/12
thank god i spend all my $$
thank god i spend all my $$ on toys
scotto
Posts: 2472
Date Joined: 21/04/08
Champ,
I think I ate your chocolate squirrel.
Pointless thread #472 from pmac.
tot
Posts: 1162
Date Joined: 31/01/10
Nail
Head
Reverse cycle a/c supply and install - Ducted and wall splits
ALEXANG3
Posts: 71
Date Joined: 09/01/11
Hahaha classic
Hahaha classic
Wahoo
Posts: 243
Date Joined: 11/06/07
.
.
Fishin for a feed and fun.
derko5000
Posts: 125
Date Joined: 12/01/13
sounds like u have a real
sounds like u have a real problem there buddy an i can fix it quite easy for you! sell all your shares an shit an drop all the coin off to me
pale ale
Posts: 1755
Date Joined: 02/01/10
Well, what would all you
Well, what would all you experts do if you were in Peters position?
After working hard in the Pilbara heat for years, he got fucked over at work and had his hand blown to pieces. He had to fight for years to get an unfair compensation payout. He will never be able to work again and has to live off of his investments for the rest of his life.
Now the taxman wants to take a huge amount of his investment returns.
Sucks dog balls I reckon.
I think a good accountant might be able to lessen the tax payable.
Maybe buy a shitload of gold and go on the pension?
Rob H
Posts: 5817
Date Joined: 18/01/12
A good accountant (not a
A good accountant (not a Financial Advisor) should have been used right at the beginning-he has unfortunately no idea of how the system works and is in great danger of getting fleeced if he leaps with some of the ideas he has put forth.
A Financial Advisor will probably be required BUT as I said to him, you need to be paying for the service.
If its free its its being paid for by someone else and YOUR not the client, your the cow being milked. Similar goes with Mortgage Brokers "free service"
Give a man a mask, and he'll show you his true face...
The older you get the more you realize that no one has a f++king clue what they're doing.
Everyone's just winging it.
Pilbra Dave
Posts: 194
Date Joined: 30/09/11
Take Action Don't Complain
At the end of the day if you are paying Tax you are making money, there are some simple ways to save on tax when it comes to interest on savings, If it is just savings you are using to support you and your Family then the first thing to do would be to ensure that the money is in a joint account with your Partner and that way you can take advantage of both of your tax free thresholds and the first $36,000 you make will be tax free. If you have kids at home then you could also put some money in their names as well but the rules are different with kids and I think only the first $6,000 a kid make in interest is tax free and then a Higher rate than normal after that. With the super low interest rates at the moment you could consider putting some of your money in to Blue Chip Dividend paying shares and that way the money you earn from them will be franked because the company would have already paid %30 tax on the money it is using to pay the dividend and you may end up getting a tax return on the franked dividends (this could also be split with your partner).
For example to pay $14,000 Tax you must earn around $68,000 in Interest providing you have no other income if you split this with your partner then your Tax Bill would be $4,200 each ($8,400 Total) saving you $5,600 in tax and then if you had two kids who you could earn $6,000 each through then your total tax bill would be $6,600 saving you $7,400 in tax.
Taking a random Dividend share like Telstra which is at about $4.95 a share and has returned 28c in full franked dividends per share over the last 12 months you would get a return of 5.6% before franking and 7.35% after taking franking into account and this is on the back of a recent rally which has pushed the price up.
It is one thing to work hard and save allot of money but you have only done half the job, now you need to manage it with the right advice and action to suit your circumstances.
You should take reasonable measures to minimise your tax because the government isn't doing a good enough job to warrant giving it to them and until you do that you don't really have grounds for complaint.
If you ain't Fishin you ain't Livin
outdoinit
Posts: 1009
Date Joined: 05/10/12
+ 10, you have got it in one there Dave
First half is earning it and the second half is to manage it...
I am a big believer in Self managed super funds..
1, only 15% tax on all income
2, only 10% capital gains tax on investments after held for 12 months
3, I still get to control the money/investments.
4, most of it will be Tax FREE after 60yrs of age..
only down side is that it is harder to access under 60 yrs of age...
So like everyone else has mentioned, GET a decent Accountant..
they will probably save you 10k and then charge you $5k to do it..lol
I've spent half my life fishing.. The other half I have wasted..
lastcast
Posts: 218
Date Joined: 04/04/13
some good pointers here Pete
the best one being to get some quality advice. I'm in that game and I can
tell you that to just become an adviser is a very low bar to jump over.
A bit of paper means didly. Also as the man said think about how you adviser
is motivated. These are the two main reasons for the horror stories you refer to.
Keep this in mind and you will be on track I reckon.
petermac
Posts: 2946
Date Joined: 03/03/10
thanks for that
thanks to all the guys , giving good advise I say thanks , to those nay Sayers I say walk a mile in my shoes and you might know where I am coming from I consider this post closed
crasny1
Posts: 7006
Date Joined: 16/10/08
Take heart Pete
I dont think others here know what happened to you at Burrup. Yes we all have to pay tax mate, and there is nothing you can do about that other than a good accountant.
But some off the sledgers dont know the story, and you know that Pale Ale and I certainly do.
And for others - He is not Tony Halliday!!!
Tony is a SAFFA, Peter is a dinky di Ozzy.
"I would like to die on Mars. Just not on impact!!" _ Elon Musk
sea-kem
Posts: 15043
Date Joined: 30/11/09
Well come on then Crasny,
Well come on then Crasny, spill the beans if you want us to make some sort of informed comment. He's fair game as far as I'm concerned if he posts up something looking for feed back.
Love the West!
Rob H
Posts: 5817
Date Joined: 18/01/12
I thought it was common
I thought it was common knowledge but i believe he lost part of his arm and leg in an industrial explosion while working on the Burrup.
He received a compensation payout which is the subject of this thread.
Give a man a mask, and he'll show you his true face...
The older you get the more you realize that no one has a f++king clue what they're doing.
Everyone's just winging it.
saltatrix
Posts: 1081
Date Joined: 30/03/08
If your disabled, then you
If your disabled, then you need to speak to an accountant about making that investment your superannuation to pay less tax.
Angling tourism is worth $10 billion to the Australian economy - 90000 jobs; more than any sport; spread the word
Fish13
Posts: 56
Date Joined: 24/07/11
I paid 12K in tax. Not hapy
I paid 12K in tax. Not hapy about the way some accouints operate. I need to find more expenses!!!