Budget

[bear]

Come on, who else thinks the move in income tax brackets from Cullen's budget is poor. A move in the brackets in 3 years time of about 6%, sounds like a have. At least they will be inflation adjusted every three years from there I suppose, unless the next government changes it.

And savings to businesses in tax that effectively make the tax rate less 2%, why not just drop the company tax rate and make less paper work for everybody?

Michael 'beat-around-the-bush' Cullen

[ManDownUnder]

On one hand - yes I'd like more in my wallet... but at the same time it's a good move if we're pouring money into reducing NZ's international debt levels... longer term benefits which also need to be looked at and considered.

In the election year - to do that - it was a surprise. I was all ready to bag Cullen for the typical round of bribes but it wasn't there. The incentive for people to buy homes is a good one too I think as we are NOT a nationa of savers and if we keep going like this we'll end up down the toilet.

I'm looking forward to the stouches between cullen and Brash now... the Master and the other Master... this will get good!

I want to know where the money is actually going... Cullen said that although we've got a surplus, byt the end of the year it'll be all gone...

So how does that make it a surplus again? If I bring home my pay and after paying all necessary bills (rates, power, mortgage etc) it's nearly all gone - what's my surplus? The amount I bring home or the amount left over at the end of it all????
MDU

[Pwalo]

I want to know where the money is actually going... Cullen said that although we've got a surplus, byt the end of the year it'll be all gone...

So how does that make it a surplus again? If I bring home my pay and after paying all necessary bills (rates, power, mortgage etc) it's nearly all gone - what's my surplus? The amount I bring home or the amount left over at the end of it all????
MDU

Yep I can't quite figure that one. The govt seem to be collecting more taxes etc, spending proportionally less, and it's all going to be gone???

Just imagine if a PLC tried that one.

[James Deuce]

Don't know about you MDU, but it is hard to save anything on a Single income with a mortgage, two kids and one on the way. There is no incentive to save as the ROI on my house outstrips anything a bank pays in Interest rates, and then the Govt. taxes any Interest you earn anyway.

My income hasn't appreciably changed in ten years so COL increases have eaten my surplus each pay to nothing. However according to the Govt I am rich so I get no assistance or tax rebates with anything. Tax relief would have been a starting point for a little relief to begin saving.

[Lou Girardin]

Well I'm busy trying to decide what to do with my tax cut. Do I do Europe for 3 months or get that MV 1000F4, decisions, decisions.
Isn't it funny that we can't have tax cuts when the economy's booming, because it may slow the boom. Now we can't have tax cuts because the economy isn't booming.
I wonder if Stagecoach management had a hand in this budget.
I also think that business should have got their corporate tax cut to match Aussie. Then, like Aussie, they could pay compulsory super contributions, 3 months long service leave, 4 weeks annual leave and pay 25% higher wages.
Damn, I'm a cynical prick :devil2:

[MSTRS]

Did I hear someone ask what a surplus is? My belief in relation to (this) government is that 'surplus' means what is left after they've had a spendup on themselves.

[bear]

Well I'm busy trying to decide what to do with my tax cut. Do I do Europe for 3 months or get that MV 1000F4, decisions, decisions.

More like that pack of gum

[James Deuce]

More like that pack of gum

In 2008 inflation will have priced a pack of gum out of the tax cut bracket.

[ManDownUnder]

Don't know about you MDU, but it is hard to save anything on a Single income with a mortgage, two kids and one on the way. There is no incentive to save as the ROI on my house outstrips anything a bank pays in Interest rates, and then the Govt. taxes any Interest you earn anyway.

My income hasn't appreciably changed in ten years so COL increases have eaten my surplus each pay to nothing. However according to the Govt I am rich so I get no assistance or tax rebates with anything. Tax relief would have been a starting point for a little relief to begin saving.

I hear you dude - know anyone familar witrh setting up companies and the associated tax cuts you can generate by restructing your finances?

It's an option available to some.. and hugely beneficial if you can do it.

It's legit, it's available, and I personally believe it should be taken advantage of if possible...

If you can't find someone to help gimme a yell - I'll se what tidbits or initial reading etc I can point you at.

That ALL being said - you're right - it ain't easy...

[ManDownUnder]

Damn, I'm a cynical prick :devil2:

I'd argue this one with you Lou... but I am too... so - welcome aboard !

[Hitcher]

The Budget. Don't get me stucking farted...

[bear]

In 2008 inflation will have priced a pack of gum out of the tax cut bracket.

And you'd have to pay by EFTPOS as there would not be physical cash denominations small even to pay by cash.
But then the small dairy owner wouldn't let you just put that small purchase through on its own, so you'd have to purchase several packets of gum.

So, Cullen is actually helping the dairy owners make extra sales - I knew there was pay-off in all of this somewhere.

[Pwalo]

Don't know about you MDU, but it is hard to save anything on a Single income with a mortgage, two kids and one on the way. There is no incentive to save as the ROI on my house outstrips anything a bank pays in Interest rates, and then the Govt. taxes any Interest you earn anyway.

My income hasn't appreciably changed in ten years so COL increases have eaten my surplus each pay to nothing. However according to the Govt I am rich so I get no assistance or tax rebates with anything. Tax relief would have been a starting point for a little relief to begin saving.

Mate you have my sympathies. I really don't know how the govt expects families cope these days (I remember reading that only one person in the present cabinet has a family - perhaps that's a clue).

Both my wife and I work, we've killed the mortgage, but with two teenage boys at school, and Weltech it's still expensive.

Still can't see a lot for all my taxes, levies, GST, GST on taxes, GST on levies, etc, etc. go.(Oh and there's free education, healthcare etc. And of course we're all too wealthy to qualify for any benefits).

Aaaarghhhh I'm sounding like my Dad!!!!!!!!!!!!!!!!!!

[MSTRS]

not til we hear you say "Back in my day..."

[geoffm]

I hear you dude - know anyone familar witrh setting up companies and the associated tax cuts you can generate by restructing your finances?

It's an option available to some.. and hugely beneficial if you can do it.

It's legit, it's available, and I personally believe it should be taken advantage of if possible...

If you can't find someone to help gimme a yell - I'll se what tidbits or initial reading etc I can point you at.

That ALL being said - you're right - it ain't easy...


You have to be carful - if the IRD deem that you are in the tax evasion business, they will nail your ass to the wall faster than a boi racer through a red light.
They can also deem that your business is a hobby, or is not being run with the entention of making a profit, so decline any tax refunds. This won't stop them keeping any money tho.
OTOH, a friend has done this successfully and can claim back the whizy computer, office space, etc, but he does actually make some sales.
Geoff

[idb]

Well I think it's a genius budget.
It's a hand-out for the next election in 2008.
Very, very clever....hehe!

[Pixie]

It's only on the top 5% of income earners-What? 10%
Sorry! It's only on the top 10% of...

Cullen looks more like Yoda every day..and The Hagg has her hand up his arse operating him too

[ManDownUnder]

You have to be carful - if the IRD deem that you are in the tax evasion business, they will nail your ass to the wall faster than a boi racer through a red light.
They can also deem that your business is a hobby, or is not being run with the entention of making a profit, so decline any tax refunds. This won't stop them keeping any money tho.
OTOH, a friend has done this successfully and can claim back the whizy computer, office space, etc, but he does actually make some sales.
Geoff

Cheers Geoff - a damned good point.

Hell yes - do it properly. Tax evasion is not good... prison and the like. Tax avoidance is a completely legitimate strategy achieved by doing those things the Govt actually wants you to do.

The give tax breaks for desirable activities - so engage in them. Providing housing - then depreciate the house, set up your company and run the office out of your home. The proportion of room that office take from your haome then decided how much the company pays of your:

Rates
Power
Phone
etc etc etc

Once the company has paid all of those thing (into YOUR bank account) it'll possibly be running in the red... so make sure you set it up as an LAQC (Loss Attributing Qualifying Company). That loss then gets turns into a tax refund... which goes back...

TO YOU

It's a VERY simple example I give above... but beloieve me it can be done and it is being done the length and breadth of the country

What would you do if your BIKE was purchased by the company... and that was depreciated etc and a decent part of the bike was actually paid for by tax refunds?

it can be done - but as Geoff says - do it right. Talk to a legit accountant and lawyer combo. Don't just take my word for it, and don't go the the cheapest source of advice! (Not surprisingly the source of advice will need to be paid for and... at the risk of repeating myself... you can claim THAT expense too.... you're starting to get the idea?)
MDU