People in my demographic are due to get compensation of $3.

Three.

philperth2010 wrote on Feb 29^th, 2012 at 10:49am:


increased from $16100 to $18000... big deal. nothing more than tax indexation and worth $1900 @15% or $285.

longweekend58 wrote on Feb 29^th, 2012 at 11:24am:


So what your saying is $285 is nothing when it goes into YOUR pocket
But $6 is the end of the world as we know it if it has to come out of YOUR pocket.

Complexity and lack of transparency in the current tax system

Currently the Low Income Tax Offset (LITO) is used to deliver tax relief to low- and middle-income earners. While the LITO has been effective in delivering targeted relief to these groups, it has also created a gap between the published tax rates and thresholds that people see, and the effective tax rates and thresholds that people ultimately face.
It is a little known fact that most people who are nominally within the 30 per cent marginal tax rate bracket actually face an effective marginal tax rate of 34 per cent. Taxpayers between $30,000 and $67,500 currently pay their statutory marginal tax rate of 15 or 30 per cent, plus the 4 per cent tax rate created by the reduction of the LITO at four cents per dollar. The Government will cut this from 4 per cent to 1.5 per cent on 1 July 2012, and increase the threshold so that it only applies to income over $37,000. From 1 July 2015, the Government will cut it further, to 1 per cent. Although there are higher headline statutory tax rates, the combination of a higher tax free threshold and lower rate of reduction for the LITO, mean tax cuts for all taxpayers up to $80,000; and no-one pays more tax.
For example, currently, a person earning $60,000 faces a headline statutory tax rate of 30 per cent, but also loses 4 cents of LITO for every dollar they earn. This means their combined marginal tax rate is actually 34 per cent (excluding the Medicare levy). Under the new scales from 1 July 2012, they will face a statutory tax rate of 32.5 per cent, but only lose 1.5 cents of LITO for every dollar they earn. So their combined marginal tax rate is still 34 per cent, but it is now more transparent. The tax reforms the Government is introducing will more closely align published marginal tax rates with effective marginal tax rates, which is more transparent and fairer for everybody.

In addition, the fact that the LITO is not explicitly reflected in the published tax schedule means that many low-income earners need to lodge an income tax return, even when their tax liability after the LITO is accounted for is nil. By incorporating more of the LITO into the tax free threshold and increasing transparency, it is easier for people to judge whether or not they need to lodge a tax return

Quote:


Well they are when you are honest & don't include upgrading & maintaing infrastructure.
Something that has already been pointed out.
Here in NSW the CT accounts for approx 12% of the increases, so prices have risen but only 1/8th of the cost can be attributed to the CT.A bit of honesty in your arguments might make a nice change, its like the BER lie you lot peddle 16.2 Billion wasn't wasted that was the total cost.