Yep but why play around with pennies. Buy a more expensive house to live in , keep a couple of hundred grand in the bank and get a full pension .
Despite the gravy this article talks about, im still quite sure im going to have to call in sick the day i die of old age.
im pretty sure they'll still be keen to see the pension disappear completely, eventually.
Its s great thought people paying their own way in retirement, theres still the problem of the superannuation industry being heavily geared towards company profits. Someone i worked with once said that he doesnt regard super as his money till its sitting in his bank account. Too true.
Same as making a profit on a house or shares. You only make it when you sell it.
Select to expand quoteBananabender said..
Same as making a profit on a house or shares. You only make it when you sell it.
Most dont
$300,000 is more like $650,000 when you mortgage is complete, plus don't forget the thousand per year in rates, insurance,
, decoration , maintenance, improvements, latest appliances that you need to stay in line
your lucky if you make a cent
There's always the odd perverse incentive in the tax system. I remember when my kids were young and wifey was at home minding them, because of the way Family Tax Benefit A and B worked, my effective marginal tax rate was close to 80%. Hows that for a disincentive to work, earn $1.00, keep 20 cents!! So I set about to even things up a little....
I bought a $5000 laptop on salary sacrifice (at the time that was FBT exempt), which effectively cost $1000 out of my pocket. I then depreciated it, which gave me a $4000 tax reduction (yes, I only used it for work). So in the end, I got an $8000 tax reduction (actually tax reduction plus increased family tax benefits payments) for buying a $5000 laptop, making $3000 profit.
I even rang the ATO before doing it to make sure what I was planning to do was okay, explaining I would be making a profit in tax from buying the laptop. They said "Yes, that's correct." They ATO is an interesting place. From various dealings I've had with them over the years I've observed they don't care how odd or perverse something is, or even if they are giving away money, they just care about applying the rules exactly as they stand.
Unfortunately the rules as they stand in this country will ultimately send it broke.
There is is a massive disincentive to employ people and we all know what will happen if the trend to offshore and outsource continues at its current trajectory.
I just can't understand where the money will come from to fund the growing welfare bill....
