Thought there are enough Aussies to start this thread...
Looks like the tax-free threshold for income tax could be raised to $18,200 on 1 July 2012. Great news for frugal folk everywhere.
Tax in Australia
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aussierogue
- Posts: 379
- Joined: Thu Nov 10, 2011 1:02 pm
absolutely....now just about anyone with an ere mind with regards to savings can get work 2 days a week (30 bucks an hour)earn 18k per year, pay no tax and live ok. To those in the usa 30 bucks an hour is a medium type hourly rate for sercretaries, admin, credit offices etc. Pulling beers, waiting tables or pizza delivery expect 20 bucks.
also our social security seems incredibly generous these days
read the other day our pensioners are the richest in the world
my parents (divorced) each own their houses, have a small annuity and the govt supplies the rest - 370 bucks each a week. With no mortgage, cheap travel and comparitively speaking pretty good healthcare we are very very lucky.
also our social security seems incredibly generous these days
read the other day our pensioners are the richest in the world
my parents (divorced) each own their houses, have a small annuity and the govt supplies the rest - 370 bucks each a week. With no mortgage, cheap travel and comparitively speaking pretty good healthcare we are very very lucky.
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aussierogue
- Posts: 379
- Joined: Thu Nov 10, 2011 1:02 pm
dividend guy - we are seriously lucky here.
here is how our wealth has changed over the last 10 years.
compared to usa
in 2000 the exchange rate was one oz dollar bought 43 us cents.
today 1 oz dollar buys 1.01 USD.
So immediately we see a doubling of wealth in our direction,
10 years ago the usa housing market was hot - oz was not. Since then my house has trippled in value since 2000. In the usa more than likely you have seen a drop in prices in that time.
Overall i reckon we have seen a 4 fold turnaround in comparitive wealth between the two countries.
Most ozzies dont realise how good we got it and complain about 5.2 pct unemployment and a minimum wage of 19 bucks per hour...
here is how our wealth has changed over the last 10 years.
compared to usa
in 2000 the exchange rate was one oz dollar bought 43 us cents.
today 1 oz dollar buys 1.01 USD.
So immediately we see a doubling of wealth in our direction,
10 years ago the usa housing market was hot - oz was not. Since then my house has trippled in value since 2000. In the usa more than likely you have seen a drop in prices in that time.
Overall i reckon we have seen a 4 fold turnaround in comparitive wealth between the two countries.
Most ozzies dont realise how good we got it and complain about 5.2 pct unemployment and a minimum wage of 19 bucks per hour...
$18,200? That's a massive increase. Almost enough to make me wish I had a job so I didn't pay as much tax 
Yep I think we have it pretty good here, pensions, health care, warm climate, plenty of space, 6-7% on savings. You could do worse.
Maybe not so great if you want to get into the real estate market as assuerogue implied, but in every other respect things are pretty good.
Yep I think we have it pretty good here, pensions, health care, warm climate, plenty of space, 6-7% on savings. You could do worse.
Maybe not so great if you want to get into the real estate market as assuerogue implied, but in every other respect things are pretty good.
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Bingeworker
- Posts: 48
- Joined: Fri Nov 04, 2011 7:41 pm
@aussierogue, if your housing has gone up 3X since 2000 (like in Canada) then you are probably still in a bubble, and it will almost certainly eventually burst, just like the USA's did. A few countries like Canada and Australia still have their housing bubble, but there is no reason to believe that it's permanent for us any more than in the other countries that had one in the past decade.
I mean really, why should housing be worth three times as much as it was in 2000? There's no way that's a real increase in value, that's speculation, as housing became the new tech stocks that everyone overpaid for in the 90's until they burst. Eventually, the housing bubble will pop in those holdout countries that still have strong economies, too.
So while I agree that things are great in Australia, don't count on that house staying as highly valued. Plus, when housing costs that much, it's not so great for those starting out who don't own one yet.
Canada's real estate is also still in a bubble. I sold my house in the summer, and was looking at prices in my old neighborhood and people are asking insane prices, which I would guess is how it goes just before the bubble bursts. I downsized to a condo so if it does burst, I'll have kept a percentage of my bubble earnings (which was just a happy accident that I earned so much- I bought the house to have a place to live, didn't see the huge increases coming).
I mean really, why should housing be worth three times as much as it was in 2000? There's no way that's a real increase in value, that's speculation, as housing became the new tech stocks that everyone overpaid for in the 90's until they burst. Eventually, the housing bubble will pop in those holdout countries that still have strong economies, too.
So while I agree that things are great in Australia, don't count on that house staying as highly valued. Plus, when housing costs that much, it's not so great for those starting out who don't own one yet.
Canada's real estate is also still in a bubble. I sold my house in the summer, and was looking at prices in my old neighborhood and people are asking insane prices, which I would guess is how it goes just before the bubble bursts. I downsized to a condo so if it does burst, I'll have kept a percentage of my bubble earnings (which was just a happy accident that I earned so much- I bought the house to have a place to live, didn't see the huge increases coming).
Australia has had a better economy over the last decade in part to the nice run up in demand for natural resources. Australia was or is still a top 5 producer of iron ore, gold, nickel, etc. Given that there are only 20-25M aussies that level of production is making a nice positive impact on their economy.
This has led to an increase in housing. While, 3x may be too much of an increase, an increase was warranted based on the extra cash sloshing around their economy from the demand for natural resources.
Spend it wisely.
This has led to an increase in housing. While, 3x may be too much of an increase, an increase was warranted based on the extra cash sloshing around their economy from the demand for natural resources.
Spend it wisely.
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aussierogue
- Posts: 379
- Joined: Thu Nov 10, 2011 1:02 pm
Hi Bingeworker and Chad
you are correct and infact i have sold down more than half of my realestate and paid of debt in total converted 300k to cash just recently. There is a bubble and yes it is bad for many in the economy. Especially those under 35. I have realised for 10 years that we are in a china driven bubble. I was lucky to land myself a financial job (derivatives trading) dealing in mining products and hence my salary soared for 8 years in a row. Instead of spending my wife and i save 8-10 k per month. That coupled with capital gains in property meant we went from nothing to millionaires in 7 years.
I have since sold down the realestate (and relaised / protected some of those gains) from asset price falls.
Cash if king. I currently write a blog, have taken a 80 pct pay cut, work 2 hours a day and pretty happy about it..
hopefully this doesnt come accross as a bragging post. In truth my wins (and australia's wins) have been by chance, geography and overall luck. I do feel however that the bubble has given the prudent a chance to set themselves up for life. The imprudent will raise lifestyle, spend more and take a hit when it falls apart.
you are correct and infact i have sold down more than half of my realestate and paid of debt in total converted 300k to cash just recently. There is a bubble and yes it is bad for many in the economy. Especially those under 35. I have realised for 10 years that we are in a china driven bubble. I was lucky to land myself a financial job (derivatives trading) dealing in mining products and hence my salary soared for 8 years in a row. Instead of spending my wife and i save 8-10 k per month. That coupled with capital gains in property meant we went from nothing to millionaires in 7 years.
I have since sold down the realestate (and relaised / protected some of those gains) from asset price falls.
Cash if king. I currently write a blog, have taken a 80 pct pay cut, work 2 hours a day and pretty happy about it..
hopefully this doesnt come accross as a bragging post. In truth my wins (and australia's wins) have been by chance, geography and overall luck. I do feel however that the bubble has given the prudent a chance to set themselves up for life. The imprudent will raise lifestyle, spend more and take a hit when it falls apart.
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aussierogue
- Posts: 379
- Joined: Thu Nov 10, 2011 1:02 pm
If chinas fortunes change the USD and pund will definately benefit.
The USD and many things in Australia are tied to the fortunes of china. But remember this - australia was already wealthy before the china boom. Maybe not super wealthy but up there in the top nations for wealth anyway.
So our goal, people and governements, should be to make hay while the sun shines. Our federal treasurer was just awarded the world greatest treasurer by the economist which is a good sign. We have a left of centre governement atm who is raising taxes on the mining industry which imo is awesome considering they make billions which generally goes into the hands of a rich few. That money produced from resources WE ALL OWN should be used to secure our future.
Like the chinese we also have billions in a war chest for a rainy day. So all up im pretty happy with the way australia is tracking.
The USD and many things in Australia are tied to the fortunes of china. But remember this - australia was already wealthy before the china boom. Maybe not super wealthy but up there in the top nations for wealth anyway.
So our goal, people and governements, should be to make hay while the sun shines. Our federal treasurer was just awarded the world greatest treasurer by the economist which is a good sign. We have a left of centre governement atm who is raising taxes on the mining industry which imo is awesome considering they make billions which generally goes into the hands of a rich few. That money produced from resources WE ALL OWN should be used to secure our future.
Like the chinese we also have billions in a war chest for a rainy day. So all up im pretty happy with the way australia is tracking.