moneyI love how increases to taxes are constantly referred to by the Treasurer as “savings“.

I always thought savings were from, well saving money that you already had.

As in not spending what you have, as opposed to taking more from someone else.

I know it took me several attempts to pass accounting at Uni all those years ago, but after working for the past 5 years in the Australian finance industry for one of our big 4 banks I have definitely learnt what a saving is. Those bastards saved so much that they gave my job to 3 blokes in the Phillipines so they could do it for a third of the price, but that’s another story for another post.

Heck, my wife and I even saved up our own money to build our own house. It was hard but we did it.

But now “structural savings” are on the table as the Government frantically tries to find money, any money, to throw at the electorate in the upcoming election.

With this in mind, I thought that I would list some of the “savings” that have already been locked in over the past 5 years or so.  As you can see, it’s quite a list. (H/T – Judith Sloan – Catallaxy Files)

I read somewhere today that 80% of the monies taken from our income tax are spent on welfare in this country.

Someone’s getting it all and it certainly ain’t me. All I keep getting is taxed at 40 cents in the dollar.

What about you? Do you receive any of our government’s largesse or are you part of it’s saving program?

Savings so far

  1. 70% increase in tax on alcopops
  2. Increase in Luxury Car tax
  3. Increase in tax on North West Shelf gas project by extending it to condensate
  4. MRRT
  5. Fringe Benefits Tax (tighten exemptions)
  6. Increase in the Passenger  Movement
  7. Australia Post special dividend
  8. Increase in Visa application charges (2x)
  9. Reducing the Superannuation concessional contributions caps
  10. Reducing income tax exemption for overseas workers
  11. Reducing concessions for Employee Share Schemes
  12. Increase in excise and customs duty on tobacco
  13. Increasing GST revenue through compliance program
  14. ATO compliance program – dealing with the cash economy
  15. Increase in tax on fuel ethanol
  16. The Flood levy
  17. Increasing Car Fringe benefits tax
  18. Phase out of Dependent Spouse Tax Offset
  19. Removing minors’ eligibility for low income tax offset on unearned income
  20. Increasing Revenue through Tax compliance — reporting taxable payments (again)
  21. Abolish the Entrepreneurs’ Tax Offset
  22. Do not proceed with the company tax cut
  23. Do not proceed with standard deduction
  24. Deferral of higher concessional contributions cap
  25. Do not proceed with 50 per cent discount on interest
  26. Ending of Tax Concessions for Green Buildings
  27. Further reform of living-away-from-home allowances and benefits
  28. Superannuation – Increasing Tax on high income earners
  29. Changes to the Net Medical Expenses Tax Offset
  30. Better targeting of the employment termination payment tax offset
  31. Increasing GST Revenue – compliance program – two year extension
  32. Increasing Heavy Vehicle Road User Charges
  33. Increasing Passenger Movement Charge (again)
  34. Dividend payments from Australian Reinsurance Pool Corporation
  35. Australian Federal Police – Partial Cost Recovery of Airport Policing
  36. Doubling of the withholding tax on Managed Investment Trusts