+ gst ?

[Naki Rat]

Have I missed comment on this, or are we all missing an obvious 2nd windfall for the government's coffers?

Having just checked a recent vehicle registration receipt I note that all component costs (e.g. licence fee, ACC levy, admin) are totalled and then GST is added. Therefore the proposed ACC levies (at 9.9c/litre on petrol) of $257.58, $511.43 & $745.77 for the three motorcycle classes would actually increase to $289.78, $575.36 & $838.99 with the addition of GST. Except of course for those that are in a position to debit your rego against GST income.

[Nasty]

Have I missed comment on this, or are we all missing an obvious 2nd windfall for the government's coffers?

Having just checked a recent vehicle registration receipt I note that all component costs (e.g. licence fee, ACC levy, admin) are totalled and then GST is added. Therefore the proposed ACC levies (at 9.9c/litre on petrol) of $257.58, $511.43 & $745.77 for the three motorcycle classes would actually increase to $289.78, $575.36 & $838.99 with the addition of GST. Except of course for those that are in a position to debit your rego against GST income.

Plus all the other bits we pay at the same time ... ACC is only one component of the registration.

[BMWST?]

i am under the impression that a 1000 cc bike wont leave much change form 1000 pesos

[NighthawkNZ]

i am under the impression that a 1000 cc bike wont leave much change form 1000 pesos

correct :blink:

[one fast tl1ooo]

O crap... better start to save...

[Swoop]

There will undoubtedly be an additional "thugby world cup surcharge" added onto that as well.
Ask any ratepayer...

[Ronin]

Don't forget the tax on the tax of the tax we pay in our petrol.

[nothingflash]

It would be interesting to see what the nett value of a shiny new $1 coin would be after a year once it has been subjected to PAYE when earned, GST when spent, ACC levies etc etc. Perhaps I should have paid more attention in Economics at school instead of generally misleading others.

[Ronin]

It would be interesting to see what the nett value of a shiny new $1 coin would be after a year once it has been subjected to PAYE when earned, GST when spent, ACC levies etc etc. Perhaps I should have paid more attention in Economics at school instead of generally misleading others.

According to my wallet, it's about -25 cents.

[nothingflash]

According to my wallet, it's about -25 cents.

Plus GST :blink:

[Jantar]

It would be interesting to see what the nett value of a shiny new $1 coin would be after a year once it has been subjected to PAYE when earned, GST when spent, ACC levies etc etc. Perhaps I should have paid more attention in Economics at school instead of generally misleading others.


For someone on the top tax rate of $0.39:

Earn $1.00 Paye $0.39 Leaves $0.61
Less ACC earner levy $0.017 leaves $0.593
Assume you spend 100% of the remainder and that 20% of this is GST exempt(eg interest on mortage) You pay $0.059 in GST
Leaving you $0.53 out of every $1 you earn.

On top of this some of what you spend on petrol, alcohol, tobacco etc goes to government as tax. Its pretty hard to calculate this as everyone's spend is so different.

I have seen figures that suggest we actually get 40 cents value out of every dollar earned.

[p.dath]

It would be interesting to see what the nett value of a shiny new $1 coin would be after a year once it has been subjected to PAYE when earned, GST when spent, ACC levies etc etc. Perhaps I should have paid more attention in Economics at school instead of generally misleading others.

Most people end up paying around 50% in tax.

[nothingflash]

For someone on the top tax rate of $0.39:

Earn $1.00 Paye $0.39 Leaves $0.61
Less ACC earner levy $0.017 leaves $0.593
Assume you spend 100% of the remainder and that 20% of this is GST exempt(eg interest on mortage) You pay $0.059 in GST
Leaving you $0.53 out of every $1 you earn.

On top of this some of what you spend on petrol, alcohol, tobacco etc goes to government as tax. Its pretty hard to calculate this as everyone's spend is so different.

I have seen figures that suggest we actually get 40 cents value out of every dollar earned.

Man - but as Ronin suggests - it seems you come out with a lot less...

Of course once that 40 cents is spent on said tobacco, the shop keeper then pays 12.5% of that on with his GST return... and so it goes on...

[Naki Rat]

Most people end up paying around 50% in tax.

And you couldn't get a better case for the "black economy" than that :shifty:

[Naki Rat]

For someone on the top tax rate of $0.39:

Earn $1.00 Paye $0.39 Leaves $0.61
Less ACC earner levy $0.017 leaves $0.593
Assume you spend 100% of the remainder and that 20% of this is GST exempt(eg interest on mortage) You pay $0.059 in GST
Leaving you $0.53 out of every $1 you earn.

On top of this some of what you spend on petrol, alcohol, tobacco etc goes to government as tax. Its pretty hard to calculate this as everyone's spend is so different.

I have seen figures that suggest we actually get 40 cents value out of every dollar earned.


Man - but as Ronin suggests - it seems you come out with a lot less...

Of course once that 40 cents is spent on said tobacco, the shop keeper then pays 12.5% of that on with his GST return... and so it goes on...

You obviously weren't joking when you said you didn't listen in Economics :blink:

[nothingflash]

You obviously weren't joking when you said you didn't listen in Economics :blink:

Clearly this is exaggerating the point... the gst component of the 40 cents (or whatever) that is paid to the shop keeper is forwarded to IRD with his quarterly GST return... Correct me if I'm wrong but that's how it was done when I was an Admin Manager for a medium sized firm... unless GST paid was more in which case he'd be due a credit.

All I'm saying is that dollar has now reduced....argh...nevermind :laugh:

Surfing was always a better option at 2pm on Friday than Economics!