2016 Budget, when is enough actually enough

The 2016 Budget has recently been announced and one of the more controversial item would be the tax break given to tax payer earning over $80000 a year. Most people earning over $80000 will be $315 better off.
A gentleman by the name of Duncan Storrar on a very low income isn't too happy that a tax break is given to the "rich" and feels that more should be done for people on low income.His argument that a savings of $315 is nothing to the "rich" but would have meant a world of difference to someone in his position. He wants more for him.

Now my question is, when is enough actually enough? He doesn't contribute any taxes, he gets free housing, he gets plenty of low income benefits, he gets $500 dollars a fortnight from Centerlink under Austudy so what else does he want? Yes I know GST is a tax, so are you saying that we should get rid of GST and increase the tax for people on $80k or more?  Any more tax on the high income earner will turn this country into a communist country. Everytime we run into budget deficit, the solution is to add more tax. GST tax, Carbon tax, Mining tax, Flood levy, tax, tax, tax.  Tax on a $80000 income according to taxcalc is:

Base income:
$80000.00
Tax on income:
$17547.00
Medicare Levy:
$1600.00
Budget Repair Levy:
$0.00
Low Income Tax Offset:
$(0.00)
Total tax:
$19147.00

Now, that is nearly 20k they are contributing and on top of that, they are forced to have private insurance or pay another 1% of their gross income for medicare surcharge. 

How is life like for someone on $80k

Now, let me give the "low income" earner a insight of what life is like for someone on $80k. Firstly, long hours and no overtime pay.

Secondly, some would still have hecs debt to pay off and they can range easily from $20k to over $100k

Thirdly, no free housing therefore renting or paying off mortgage, meaning paying roughly $2500 every month for a medium mortgage of $450k for 30 years. Note: any job loss will contribute to mortgage stress.

Let me work the sums for you,

TOTAL INCOME AFTER TAX: $60853.00

TOTAL EXPENSE: 
  • Health Insurance : $3000(Mandatory)
  • Home Insurance : $1200
  • Mortgage: $30000
  • Car Insurance: $400
  • Utilities: $3600
  • Food: $7800 ($150 a week, so don't think lobster and fillet mignon)
  • Council $2000
  • Rego: $500
  • Internet and phone(This is actually a requirement for work) $1000
  • Fuel $2600 ($50 a week)
That works out to be $52100 a year in minimum expenses. That leaves $8753 a year. This does not include school fees, clothing, stationary, books, doctors, car repairs/services and many of life unexpected expenses.


People on $80000 are not exactly living the high life here. Its your life and choices and decisions you make in your life affects how you live your life. Do not expect other people to be paying for your life choices.

Victor

Programmer by day, couch potatoe by night. Born in Singapore, working in Perth Australia. Likes food, travel and all things nice.

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