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

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!

 

Tax and fair in the same sentence...

 

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

 

I always take out inflation before declaring.

 

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)

 

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?

 

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

 

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!

 

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

 

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.

 

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.

 

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.

 

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.

 

There, fixed it for you.

 

Australian banks - thanks for the correction.

 

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.

 

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.

 

Interest = Income = Income Tax!

QED.


OC

 

QEF I should have thought, but I get your point

 

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.