Why are interest earnings taxed by the Government....It's not fair.

Discussion in 'Wealth Creation & Management' started by TheEnd, May 1, 2013.

  1. TheEnd

    TheEnd Well-Known Member

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    O.k I've been lucky enough to dodge the Ozzie house price bubble, I'm lucky enough to not have a mortgage at present and now i'm a fully pledged precious metal stacker thanks to the internet and Alex Jones, Bob Chapman and all the rest.....

    For years I worked hard with lots of overtime on week nights and most saturday mornings for 9 years.... All that time I kept my money in an interest saving account....(before I knew about PM's)

    What I want to know is Why the bloody hell does the government need to tax our earnings on interest payments?.... For gods sake the rate is only 3% at the moment...how much of our money do they want I already pay at the end of every week....I'm really pissed at this!
     
  2. thatguy

    thatguy Active Member

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    Tax and fair in the same sentence...
     
  3. renovator

    renovator Well-Known Member

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    yeah i agree its a fkn joke ....you do the right thing & save & they have another bite when it gets a flyshit of interest . For years i kept investing it in other things & keeping the money out of the banks alltogether
     
  4. willrocks

    willrocks Well-Known Member Silver Stacker

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    I always take out inflation before declaring.
     
  5. TheEnd

    TheEnd Well-Known Member

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    Yeah Reno I'm pissed We already pay tax every week in our pay check and then they go and screw us some more.... ARe PM's the ONLY resort.....It certainly appears so? (Apart from property which is also a risk in these times)
     
  6. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    It's the system. A pretty good system. If that's your sole income then the first $18,000 pa is tax free.

    Roads, hospitals, schools etc. do you want only the others to pay?
     
  7. renovator

    renovator Well-Known Member

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    Theres all sorts of things from art ,collectibles antiques,vintage cars/motorbikes/boats do your research & put your money where your research tells you its safe .Something you know well will always be the best option
     
  8. TheEnd

    TheEnd Well-Known Member

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    Ye Reno i'm a motorbike man and my uncle in QLd does quite well out of buying and selling classic British bikes and Harleys ...... I just wish the Ozzie house price bubble would burst so I could buy some cheap property for half price like what happened in the U.S!
     
  9. Stick Framer

    Stick Framer New Member

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    They don't want people to have savings because that means that you are not spending your money generating tax income for them, so they'll get it one way or another

    Just remember that the banksters are addicted to credit because that's how they make the money, and who has the most influence on the government?

    Just don't go out running your own business like me as all I seem to do is pile money up to ship out to the ATO
     
  10. goanna

    goanna Member Silver Stacker

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    You're forced into the game and pay tax on money earned. It costs you something to earn that money, time, postage, recociliation . . . inflation . . all legitimate expenses.

    I used to make a piddling amount from my hobby, declare it then deduct the expenses (always greater) it cost to earn it. That comes off your top tax dollar. You can come out ahead if you think about it.
     
  11. Elemental

    Elemental Active Member Silver Stacker

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    The banks all send your interest earned into the ATO along with your tax file number. When you lodge your tax return if there is a difference between what you have declared and what the bank said you earned then the ATO will automatically amend your assessment and you will have to pay back the difference.

    Inflation is not a deductible expense.
     
  12. Elemental

    Elemental Active Member Silver Stacker

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    There are rules to stop claiming losses on non-comemrcial businesses against other income. If the business is a non-commercial business (as described by the ATO - there are 4 tests you can satisfy) the loss from that business must be carried forward.
     
  13. Elemental

    Elemental Active Member Silver Stacker

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    As for the OP - it is a joke that interest is taxed at the marginal rate of tax. Apart from the other suggestions, if you look at the return you get from having shares in the bank (due to receiving franked dividends) then at the moment it'll be better than the interest you receive from having money in that same bank. Of course, there is the risk of losing your capital if the share price decreases.

    All food for thought and not financial advice and all that.
     
  14. willrocks

    willrocks Well-Known Member Silver Stacker

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    There, fixed it for you.
     
  15. Elemental

    Elemental Active Member Silver Stacker

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    Australian banks - thanks for the correction.
     
  16. Ageo

    Ageo Member

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    Like my grandfather used to say when he came here from Italy,

    "i worked hard my whole life on the rail works, saved all my money and invested heavy into property and got myself a few properties paid off when i retired"

    " I had a friend who all he did was spend his money on booze and other things, never invested and spent all his money"

    "Today we are both retired, he receives a pension and i receive nothing"

    You can imagine how he feels when he sees all the bums that come from overseas and get money for doing nothing,

    Instead of rewarding hard workers this country rewards bludgers, the less you work the more you receive... fkd up eh

    I remember he said back then when he arrived if you didnt work you basically died so you had no choice.
     
  17. JulieW

    JulieW Well-Known Member Silver Stacker

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    The difference is that the dependent pensioner is locked into a no escape life of hand to mouth that he must bow and scrape for every day.

    Achieving financial independence in your old age gives you at least some control of your destiny.

    As for the OP question. Government steals.
     
  18. Old Codger

    Old Codger Active Member Silver Stacker

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    Interest = Income = Income Tax!

    QED.


    OC
     
  19. XB

    XB Active Member Silver Stacker

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    QEF I should have thought, but I get your point
     
  20. AngloSaxon

    AngloSaxon Active Member

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    And the interest rates for domestic banks are set to come down soon when the Reserve Bank drops the cash rate.

    ZIRP here we come.
     

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