Welcome to Finance and Fury

Today will be a quick update for the upcoming election and policies in response to the budget plans released last week. This election is becoming a battle for votes among salary earners.

In the past we have talked about class warfare strategy – it’s a tactic being used by both major parties.

Breakdown:

  • Where is each party is hanging their hats with incomes and taxes?
  • Liberals announced tax cuts at the last budget last year
  • Frydenberg’s affirming even more tax cuts for individuals and businesses, spending on education and infrastructure
  • A reward for effort, aspiration, and enterprise, upholding personal responsibility and providing a helping hand where needed
  • Next generation does not have to pick up the tab for the last generation
  • Liberals are promising other things too like a budget surplus of $7.1bn which is a massive turnaround from 6 years ago when they took office

Tax original plan under Liberals:

  1. Provide immediate relief by increasing tax offset
  2. Protect income earners from bracket creep – wage growth with no threshold increase pushes people into higher tax brackets
  3. Abolishing an entire tax bracket – incentivising hard work
  4. Doubling the low and middle-income tax offset from 2018 – 19
  5. Structural reform by lowering the marginal tax rate to 30% for earners of $45k to $200k
  6. Limit the amount of tax as a share of the economy
  7. Being in surplus now means the government can reduce their revenue
  8. The previous episode explaining Reagan’s approach
  9. Someone earning $300k was paying 10 times more tax than someone no $45k
  10. What is Shorten’s response? Calling the budget radical right wing?

Exposing shorten

  • Claiming tax reductions are the same as giveaways. A giveaway to let people keep what they work for?
  • What is Shorten’s background and what he represents vs what he has?
  • Morrison summed it up best – why would you work hard under the Labor government?

Labor’s budget plans:

  1. Alternative tax cuts and relief from bracket creep
  2. Said that 4.5 million workers earning between $48k and $90k will be better off under their plan, but are yet to release the details.
  3. ANU centre for social research has said under Labor there will be an increase in tax revenues of $39 bn over the years until 2024, which is a 5% increase from current revenues
  4. Analysts and professors say Labor’s plan will modestly lower income inequality but Liberal’s plan will modestly increase it because they pay more tax
  5. Let’s have a look at some statistics
    1. FT Employed – 6.7m and PT employed – 3.9m – about 10.6m people
    2. 5m people shorten referred to are mainly PT or entry working positions
    3. Median Income (middle) for full-time workers – $78,268 p.a.
    4. Average Income of FT worker – $90,300
    5. Average earnings of all workers (Pt and FT) – $67,243

 

 

What does this mean? The good side

  • Simplified tax codes – this is a good thing
  • Global confidence reaffirming the AAA rating
  • Being on par with taxes in a global economy

 

What is bad?

  • Other bits of regulations, you need less regulation in conjunction with lower taxes to benefit
  • Abhorrent material on platforms tax
  • Encryption laws to get around privacy breaches
  • ISPs banning sites

Summary:

  • Some very good things here with tax cuts
  • Tax cuts are good, especially when they benefit low-income taxes
  • Income taxpayers fund the government, so its good to incentivise them to work

 

Thank you for listening today. If you want to get in touch you can do so here. Please don’t forget to review us and share us with your friends and family.

Resources:

 

 

 

 

Say What Wednesdays: Petrol Prices are going up – why this is and what to do about it!

Say What Wednesdays Petrol Prices are going up – why this is and what to do about it! Australian motorists are suffering the biggest annual increase in petrol prices in 9.5 years as global factors combine to slug drivers at the bowser. ACCC - 2017-2018 financial year...

What Central Bankers may do in the next financial collapse, if there is ever going to be one!

Welcome to Finance and Fury Today – going to cover the Central banking playbook in the next crisis – If there is ever going to be one! Today – was doing some reading so will have a look at some comments from key central banking figures over the past few years – and...

Furious Fridays: Wolves in Sheep’s Clothing: How socialism is threatening our amazing country

Furious Friday Wolves in Sheep's Clothing: How socialism is threatening our amazing country Welcome to Finance & Fury, the Furious Friday edition. To start this episode, I want to say just how incredibly lucky we are to be born in Australia during this time, even...

Have bond prices already factored in interest rate hikes or will they lose further value when interest rates do rise?

I hope you're going well and welcome to Finance and Fury. This week we have a question from a listener, David, in relation to bonds. The question is “Are the predicted interest rate hikes already factored into the price of the bond market? Or do you think we'll see...

How do I make an Investment Strategy?

Welcome to Finance and Fury, today’s episode is a flow on from last Monday’s Investment philosophy episode and narrow down into an Investment Strategy. To invest properly, your investment beliefs need to expand into a strategy, an implementation plan. So Today: Expand...

Furious Fridays: Dissecting Labor’s plans for housing affordability

Furious Fridays Dissecting Labor’s plans for housing affordability Welcome Finance and Fury’s Furious Friday episode. Today we’re answering the question we asked on Wednesday about Labor’s polices and their promises to lower housing prices/increase affordability. If...

How do I invest in property in 2019?

Hi Guys, and Welcome to Finance and Fury. Today I have Jayden with me for part 2 in the Mini-Series on the best investments for 2019 Last Monday we went through Shares, and whether it is a good idea to invest in 2019. Today we will look at investing in property in...

Recent market volatility – is the market crashing? Are we on the way to another GFC?

Episode 33 Recent market volatility - is the market crashing? Are we on the way to another GFC? Welcome to SWW …on a Monday … because we have been receiving a LOT of questions about what’s happening with this so-called “market crash”, why has the share market dropped...

What are TraCRs and how do they compare to buying international shares directly?

Welcome to Finance and Fury, The Say What Wednesday Edition Today's question comes from Chris What are your thoughts on TraCRs? I can’t recall if you’ve spoken about them before on your past episodes, if you have which one was that and I’ll go back and listen? How...

The future state of the housing market.

Welcome to Finance and Fury. Current state of the housing market – and the influence The RBA has and will have on Housing prices. The RBA has a long history of influencing the Australian housing market due to their control over the cash rate – for the past 30+ years –...

Pin It on Pinterest

Share This