Private Health loss of Rebate for some

[MatF]

What we need is a change of topic to raising GST level to cover .... free public transport. Caught a bus the other day, was shocked by the price increases...

It wouldn't surprise me if that was next, since I virtually never use public transport either ...

 

[dfcatch]

But since the licenses have already been given you cannot then change the rules, unless you want government to pay billions in settlements in changing rules.

Anyway, this thread needs to end as the outcomes are already set in cement.

What we need is a change of topic to raising GST level to cover a dental plan and free public transport. Caught a bus the other day, was shocked by the price
increases...

1/ You can easily change the rules - and any cost would be less than what we are wasting under the current plan.
In any event, service levels are separate to the debate about whether the Government should be in the ISP business or not.

2/ GST revenue goes entirely to the states. Dental plans would most likely be federal so that doesn't work.

3/ Free public transport - nothing to do with raising the GST, but many states have actually considered it in the past.... based on the losses being offset by not having the costs of tickets/enforcement.

4/ GST revenue to the states increases with economic growth and business/consumer spending. Good economic management is the best recipe for increasing GST revenues (and therefore States' revenues). A simplistic raising of the rate - will not result in an instant increase in revenue by the same amount. (Although it will do more so than via an increase in Income Tax).

 

[rechoboam]

Sorry how is it going to help if the hospital buys a mobile basestation? The telephone companies install those not the hospital. And the mobile phone network is not "done" it is constantly changing and being expanded.

I would also guess one thing that you do believe about the NBN - expensive waste of money. No?


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Some buildings with large basements etc buy repeaters to ensure signal

 

[MatF]

5% premium increase from April 1

Private health insurance rates jump by 5 per cent | Herald Sun

 

[Moody]

5% premium increase from April 1

Private health insurance rates jump by 5 per cent | Herald Sun

And herein lies the problem. Health costs are escalating as we successfully keep more people alive for longer, and no matter which way you slice it there needs to be an increase in taxation to fund it. I would prefer it if they doubled the Medicare levy, got rid of the rebate and just made health costs tax deductable, and re-task all the now unemployed public servants with driving health costs down.

 

[drron]

5% premium increase from April 1

Private health insurance rates jump by 5 per cent | Herald Sun

Fortunately my rebate went to 35% in december.Easy come,easy go.

 

[cove]

Straitman there will be a new tax for you I think!

 

[simongr]

5% premium increase from April 1

Private health insurance rates jump by 5 per cent | Herald Sun

Actually higher than I was expecting. Although below the increase in benefits being paid and medical inflation. Looks services are going to start getting squeezed...

 

[wafliron]

Some buildings with large basements etc buy repeaters to ensure signal

I thought said repeaters need to be installed by the mobile carriers due to low transmission power limits for people / companies who aren't licensed as a mobile provider? Or do the mobile carriers install them but the building owners pay for them?

 

[rechoboam]

I thought said repeaters need to be installed by the mobile carriers due to low transmission power limits for people / companies who aren't licensed as a mobile provider? Or do the mobile carriers install them but the building owners pay for them?

I think the latter but I'm not personally involved.

 

[JohnK]

Have I missed another important announcement? I wonder how much this one is going to cost me?

I don't believe the 9% Super is "gone". It is yours when you reach retirement age or die. It is not a tax and should not be represented as such. In fact it is a subsised form of saving as it attracts a lower tax rate in most cases.

I am yet to be convinced about forced superannuation deductions. The biggest problem is that it is in the wrong hands.

At last count I have ~$80,000-$90,000 in total in compulsory superannuation. From memory compulsory superannuation has been around since 1991-1992 so close to 20 years. I have been on a reasonably high income from the beginning and have been in fairly safe super funds yet I believe my deductions over the years are more than my current balance. Where has it all gone?

I know I could theoretically set up my own super fund but had I invested these super funds into a low interest bearing account I would have done better than the super funds. It would be no contest had I invested the money in property as I have done for myself anyway. So much for investment experts....

 

[Deleted member]

Have I missed another important announcement? I wonder how much this one is going to cost me?


I am yet to be convinced about forced superannuation deductions. The biggest problem is that it is in the wrong hands.

At last count I have ~$80,000-$90,000 in total in compulsory superannuation. From memory compulsory superannuation has been around since 1991-1992 so close to 20 years. I have been on a reasonably high income from the beginning and have been in fairly safe super funds yet I believe my deductions over the years are more than my current balance. Where has it all gone?

I know I could theoretically set up my own super fund but had I invested these super funds into a low interest bearing account I would have done better than the super funds. It would be no contest had I invested the money in property as I have done for myself anyway. So much for investment experts....

Yes you could theoretically set up your own fund. The cost of this will range but in general terms will ( if done properly) cost about $5,000.00 in the first year, which will cover advice and compliance costs. Even if you handle all of your own investment costs you are still looking at a further $2,000.00 per annum.
However it is important to realize that superannuation is NOT and investment type, it is merely the set of rules around which it operates. From an investment perspective, super is the best game in town.
It enjoys tax deductibility , a low tax environment (15%) which if invested in Australian shares will reduce further as a result of imputation credits etc.
Most people don't understand it, and that is why silly ads on TV with ex governors of RBA tend to confuse and contribute to the ongoing ignorance of the populace.
I am sure that if you had your funds ( still invested in super) in fixed interest you would be quite pleased with your returns right now.
However if when returns were 15% 20% + across most funds , I doubt you would have been content with 7.5% in a cash account ,
20/20 hindsight is a wonderful thing.
Also , unless you are forced( as part of your employment arrangements) to make personal contributions then you are not actually contributing at all. The initial 3% contribution was a productivity trade off, however SGC has become a form of deferred income.
When and if you retire the income or lump sum you receive will free of tax.

Back to managing the funds yourself, if you want to do a DIY fund ( I have one myself ) remember it is not a set and forget scenario, as a trustee your responsibilities are onerous and if you get it wrong, the penalties can be quite harsh. Having said that,with proper advice and support there should not be too many problems.
A DIY fund can be a rewarding experience and if you ( and spouse) have sufficient resources it can be as competitive in cost as a retail managed fund.
You can buy your own shares, direct real estate, and a range of other investments ( with some strict rules and restrictions ) not usually associated with super

If anyone wants to know more about specifics feel free to PM me. .....it's what I do

 

[medhead]

I know I could theoretically set up my own super fund but had I invested these super funds into a low interest bearing account I would have done better than the super funds. It would be no contest had I invested the money in property as I have done for myself anyway. So much for investment experts....

Most super funds have offered choice of investment option for at least 10 years, if not longer. So you have had the option to invest in fixed interest or property.


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[Deleted member]

Most super funds have offered choice of investment option for at least 10 years, if not longer. So you have had the option to invest in fixed interest or property.


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Right from the start, in fact most ( at the start) had a capital guaranteed option,
If you had been invested this way vs Australian shares , you would be way behind , in spite of global market turmoil.

 

[Deleted member]

I do not work any overtime solely due to the fact that I only take home 43.5 cents in every dollar I earn (45% marginal tax + 1.5% Medicare + 1% flood levy + 9% super = 56.5% gone). So you have now met someone who stops working due to the tax rates in Australia. I would rather have the time off than work at such a reduced rate.

So salary sacrifice all of your overtime, the tax on that is only 15% and will be a nice tax free ( + int ) bonus in retirement.

 

[rechoboam]

So salary sacrifice all of your overtime, the tax on that is only 15% and will be a nice tax free ( + int ) bonus in retirement.

Isn't it generous for the government to give us the option of locking our money away for 35 years in return for not paying half our overtime to Wayne and Bob. As it happens my granddad died one week into retirement so I would still prefer to spend my day off and weekends with family.

 

[medhead]

Gee, i should have kept reading. Didn't realise we got into the politics of envy and working harder BS. Simple fact is this impacts on 15% of taxpayers and by an amount that they can afford. Jump on the Tony "I was robbed" Abbott catch phase wagon of "politics of envy" all you like; the fact remains this is economically responsible (probably the thing that upsets the antis the most) and it is not about envy or stopping people from working harder.

Working harder go dig a ditch and then tell me about hard work; seriously that is the most pathetic whinge I have ever heard. *sob* "your stopping me from working harder" *sob* Well I call shenanigans! Everyone works hard!

I do not work any overtime solely due to the fact that I only take home 43.5 cents in every dollar I earn (45% marginal tax + 1.5% Medicare + 1% flood levy + 9% super = 56.5% gone). So you have now met someone who stops working due to the tax rates in Australia. I would rather have the time off than work at such a reduced rate.

Missed this the first time. Clearly you're a glass half full person. As mentioned 9% super is not a tax. It also does not come out of your overtime pay. It is, in fact, 9% of your gross pay. Hence it is in addition to your pay. So in reality overtime gets you 53.5% plus 7.65% in your super = 61.15% total.

For a couple to lose even 1 cent of rebate they would have to earn way over 3000 (gross) a week... Before claiming even 1 tax deduction they still take home over 2000 (net) a week. And u cant afford to pay a little extra.. Here a tip, drink 1 less bottle of imported wine a week, then u have enough to cover it.

Yep, I've worked out it'll cost me about 2 decent lunches.

I'm happy to be independent of the government, it's the government with its out of control spending that is desperately dependent on people like me.

Do you see the irony of repeating Abbott's "out of control" spending claim in relation to a change that caps the government's spending?


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[dfcatch]

It costs more to provide health coverage for a person than it does to subsidize 30% of their private cover - simple maths.

The government is not pursuing economics - they are pursuing ideology..... Which means "politics of envy" complaints are entirely legitimate.

In some cases - eg Medhead's - then the government is saving money as Medhead will graciously pay the extra 30% premium and will maintain his private cover so as to not be a burden on the taxpayer.

The unfortunate reality is that not every person will do the same.

That is why it's false economics.

 

[medhead]

Isn't it generous for the government to give us the option of locking our money away for 35 years in return for not paying half our overtime to Wayne and Bob. As it happens my granddad died one week into retirement so I would still prefer to spend my day off and weekends with family.

And my grandad lived 20 to 30 years into his retirement and he had no super to draw on and was a burden to the taxpayer. (and also a life long Liberal voter) Everyone has different experiences and policy is not determined based on one individual.

It is economically responsible to save for retirement now and not leave a burden for the public purse in the future. Simple.


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[awilcockson]

Got my "sorry, but your premiums are going up" letter yesterday.

10% increase

Add the increase for my rebate dropping from 30% to 20% and my increase in premium this year will be 25% !!!

Good job Labor, my premiums are now considerably higher than the medicare levy ransom, er surcharge. So there's a fairly good chance I'll be ditching the private cover and adding to the stress on the public health system. I'm sure that's what you wanted, so I'm glad you got your desired effect ...