Thanks for watching! 😊 I enjoy seeing your comments coming through. I just want to clarify the intent of this video. The examples are meant to illustrate different scenarios and strategies that can be applied based on individual circumstances. 📊 This video isn’t about reducing disposable income just to save tax. Reducing taxable income to the effective tax-free threshold doesn’t necessarily mean that’s all the person has to live on. There could be other tax-free income or support from a spouse’s income. 💡 Everyone’s situation is different and unique! 🌟
@@Bokgatyes from what I saw, she has to live on $22k per year - that’s impossible in Australia in 2024. Esp with a child. I know a single mom and she doesn’t get spousal support. Also if she’s working she will get very little support from government. $40k income doesn’t qualify you for great centrelink benefits (non taxed).
@@sadiemakesmesmile hi Sadie. What they are saying is that some people have other forms of income. So if that’s the case, souse income possible, but my question to RuiShi is what other “tax-free income” is there . Australia taxes like a wounded bull wherever possible. Quite keen to know the answer. Anyone?
@@Bokgat For Jenny, her spouse's income or gifts from family could help. For Dennis, it might be his tax-free pension from super. Everyone's situation is unique, and there are often various sources of support
Some great information in here, really pleased I found your channel. Especially regarding the Super contributions around retirement age. Keep up the good work 👍
Thank you so much! 😊 I'm glad you found the information helpful, especially about super contributions around retirement age. Your support means a lot-I'll definitely keep the content coming! 👍
It is stupid for people on low incomes to fixate on tax avoidance.. The marginal tax rate from 18200 right up to 45k is 19% Super contributions, if you claim them as a tax deduction, are taxed at 15% It makes no sense to put 14k into super and then live below the poverty line for a year just to reduce your tax by (4% of 14k) $540
Thanks for sharing your thoughts. It's true that tax strategies should align with individual financial circumstances. For those on low incomes, focusing solely on tax avoidance might not be the best approach, as living comfortably and meeting daily needs are also crucial. Balancing tax planning with overall financial well-being is key.
Thank you it's only 630 in the morning and already learnt something new today. The only problem is that by the time I may be able to use this in about 14 years, the government would have changed the rules by then.
Thank you! I'm glad you found the information helpful. It's true that superannuation rules can change over time. Keeping informed and staying flexible with your financial planning will help you adapt to any changes that may come in the future. 😊
Its disgusting and indefensible. I submitted a petition online for this to be debated in parliament and was told to get stuffed as they will allocate assistance where they deem it is required. This affects all low income workers.
I understand your frustration. It can be really challenging to navigate the system, especially when it feels like your concerns aren't being addressed. Your efforts to raise awareness and push for change are commendable. Let's hope continued dialogue and advocacy can lead to more equitable solutions for low-income workers.
Thanks for your support! Financial topics can definitely spark strong emotions, but I'm committed to providing clear and helpful information. Your appreciation means a lot. Stay tuned for more content! 😊
You're very welcome! 😊 Yes, keeping the balance below $500k is key for the 5-year super catch-up. Adjusting your schedule sounds like a smart move-best of luck with your planning!
Thank you. Can you explain how the Not for profit salary packaging work? I work in aged care (a non-for-profit org), how can I get the tax benefit? thanks.
Thanks for your comment! I might do a video on salary packaging for not-for-profits in the future. In the meantime, it's a good idea to consult a financial adviser or check with your employer's HR department for specific guidance on maximizing your tax benefits.
It’s definitely a challenging situation for many aged pensioners. It's important to look for ways to support and improve the system for those who need it most. Thank you for sharing your thoughts.
You should have mentioned that in the Dennis example, he would have to meet the Work Test in order to make a concessional contribution to superannuation. If you can't meet the work test, concessional (i.e. tax deductible) contributions cannot be made. Non-deductible ones still can, but of course they can't reduce taxable income.
Thanks for the comment! 😊 In the example, Dennis is 60 years old (02:29), so he doesn't need to meet the Work Test to make concessional contributions. 🎉 This is because the Work Test applies to those aged 67 to 74.
Thanks for sharing your thoughts! 😊 Raising the tax-free threshold to $40,000 would definitely provide more relief for many people. It’s an idea that could help ease the tax burden, especially in today’s economic climate.
The $18,200 tax-free threshold is meant to provide relief to low-income earners, but it's true that those earning below this amount still face financial challenges. The system aims to reduce the tax burden for lower incomes, yet more support might be needed to help the lowest income earners.
When you move overseas, your tax obligations depend on your residency status. For personalized advice, it’s best to consult a tax professional to consider your specific situation.
I'm just happy that the Boomer who bought the investment property 20 years ago with his spare change benefiting from negative gearing also gets to sell it completely tax free. What a great system.
Thanks for sharing your thoughts. The tax system can definitely seem uneven. It's important to stay informed and understand the various rules and how they apply.
It’s unlikely because any carry-forward tax contribution you make now will be for FY25 and can only reduce your tax in FY25. It's always best to consult a tax professional for specific advice on your situation.
But nobody call live on $22000 if you make taxable income to $22,000. People don't know the low income offset but it automatically calculated by their payroll department .
Thank you for your comment. You're right; the low income offset is automatically calculated and is applied when you file your tax return. Reducing taxable income to $22,000 doesn’t necessarily mean that’s all the person has to live on. There could be other tax-free income or support from a spouse’s income. Everyone’s situation is different and unique! 😊
I do very nicely on a taxable income under $22,000. I collect a tax free income from a super pension account but also have income from share dividends and the occasional sale. Between the CGT discount and dividend imputation my taxable income is below the tax free threshold. The tax arrangements for fairly well-off oldies like me is outrageous but I won't be complaining. My main motivation is not having to pay provisional tax (where you pay estimated tax in advance).
@@vk3dgn lol Thats only if you got your own home and pay no rent or mortage. Today Australia is now call the unlucky country unlike the good old days . you might bought a home back thrn only $30,000 or even $10,000. Now it $2 million to buy a house . With $22000 you might just have enough to pay rent . Not enough in sydney rent now is over $600 a week . your pension from super wasn't tax free. you have pay 15% taxes when you have contribute to your super.
@@johnnywong1018 You are completely correct. Most of my life the government cared that people could afford a decent home to live in. In recent times they seem to have lost it, preferring mass immigration to risking a few quarters of negative growth. The commonwealth seems to be waging war on young people and I'm baffled at how they get away with it.
That does sound incredibly frustrating for Jenny. Saving for a home can indeed be a long and challenging process, especially with current housing market conditions. Let's hope there are ways to make this journey a bit shorter and more manageable for young people like her!
Thanks for your comment! The examples in the video are meant to illustrate different scenarios and strategies that can be applied based on individual circumstances. This video isn’t about reducing disposable income just to save tax. Reducing taxable income to the effective tax free threshold doesn’t necessarily mean that’s all the person has to live on. There could be other tax-free income or support from a spouse’s income. Everyone’s situation is different and unique!
I just wish i could pay my tax in one lump sum at the end of the year. Paid fortnighly so best you can do is payg installments monthly. Not much benefit. Maybe i can ask too be paid by multiple different companies in the group 😂 claim tax free threshhold in all and then use that money during the year then get big bill at years end is that legal ?😂
Thanks for your comment! It's generally not legal to claim the tax-free threshold from multiple employers if you have more than one job. Doing so can lead to underpayment of tax and a significant bill at the end of the year. It's best to discuss tax planning with a professional to find the most effective and legal strategies for your situation.
Click bait folks. 18200 still Dennis sold a property so he is rich anyway. The middle lady is making before tax contributions. If she is so poor that she wants to reduce her tax to about 20 k income she is struggling anyway. So why would she make a before tax contribution.
@@paulkyriakopoulos3444 thx. I’ve been playing the 18,200 rule since rates started going up again but I just earn interest on fixed deposits as a semi retiree
Thanks for your comment! Reducing taxable income to the tax-free threshold doesn’t necessarily mean that’s all the person has to live on. There could be other tax-free income or support from a spouse’s income. The examples in the video are meant to illustrate different scenarios and strategies that can be applied based on individual circumstances. Everyone's financial situation is unique, and what works for one person might not work for another.
@Bogkat - you haven't thought through the spouse aspect. The middle lady may be struggling on paper but if her husband is the main income earner instead of struggling they get a healthy tax return instead of paying tax. My wife and I do it all the time. Difference between a nice holiday each year and staying at home for some. Or wack it on the home loan!
If you're making $140,000, the rate jumps from 30% to 45%. I would ask their boss to cut my salary for just $1 to avoid paying extra $21,000 tax? That's legal and a smart way to avoid paying heavy tax.
@@stoives it's 37% from 135k to 190k in 2024. For me and Mrs both on about 150k. I'm just going to drop hours a bit. Disincentised to pay for welfare of others. If I lose my job I can't get looking for work allowance, I have income protection insurance but that doesn't kick in for three months. By retirement age I will fail asset tests. Can't get family tax benefit a or b. Etc. missed out on fhog, building boost, home saver etc. -millennial.
@@stoives yep, I don't know if people don't understand this, or willingly ignore it as if to sound like they're being hit harder than they actually are in some sort of "pity my woes" pitch :shrug:
The ATO page says 'unused concessional contributions cap amounts from up to 5 previous years'. By your calculation, it looks like the super contribution for next financial year (FY2025) is also deductible from FY 2024 income, right?
Thank you for your question! We are currently in FY25 and the video uses rules applicable in FY25. You can use the unused concessional cap amounts from the previous 5 years (FY20 to FY24) along with the current year's cap (FY25). Hope this clarifies things!
![Superannuation Tax Changes at Age 60: What You Need To Know [Australia]](http://i.ytimg.com/vi/h7F7Fc_ZpnE/mqdefault.jpg)
Thanks for watching! 😊 I enjoy seeing your comments coming through. I just want to clarify the intent of this video. The examples are meant to illustrate different scenarios and strategies that can be applied based on individual circumstances. 📊 This video isn’t about reducing disposable income just to save tax. Reducing taxable income to the effective tax-free threshold doesn’t necessarily mean that’s all the person has to live on. There could be other tax-free income or support from a spouse’s income. 💡 Everyone’s situation is different and unique! 🌟
@@OZRuiShi what types of income might this be? Income that allows her to still remain below the approx 18200 threshold ?
@@Bokgatyes from what I saw, she has to live on $22k per year - that’s impossible in Australia in 2024. Esp with a child. I know a single mom and she doesn’t get spousal support. Also if she’s working she will get very little support from government. $40k income doesn’t qualify you for great centrelink benefits (non taxed).
@@sadiemakesmesmile hi Sadie. What they are saying is that some people have other forms of income. So if that’s the case, souse income possible, but my question to RuiShi is what other “tax-free income” is there . Australia taxes like a wounded bull wherever possible. Quite keen to know the answer. Anyone?
@@Bokgat For Jenny, her spouse's income or gifts from family could help. For Dennis, it might be his tax-free pension from super. Everyone's situation is unique, and there are often various sources of support
@@OZRuiShi you’ve not answered the question …. What types of income. Super or pension payments is not income.
Some great information in here, really pleased I found your channel. Especially regarding the Super contributions around retirement age. Keep up the good work 👍
Thank you so much! 😊 I'm glad you found the information helpful, especially about super contributions around retirement age. Your support means a lot-I'll definitely keep the content coming! 👍
It is stupid for people on low incomes to fixate on tax avoidance..
The marginal tax rate from 18200 right up to 45k is 19%
Super contributions, if you claim them as a tax deduction, are taxed at 15%
It makes no sense to put 14k into super and then live below the poverty line for a year just to reduce your tax by (4% of 14k) $540
Thanks for sharing your thoughts. It's true that tax strategies should align with individual financial circumstances. For those on low incomes, focusing solely on tax avoidance might not be the best approach, as living comfortably and meeting daily needs are also crucial. Balancing tax planning with overall financial well-being is key.
@@kohnjelly well according to the author, super is apparently income lol
So much valuable information. I will definitely see you in the next one
Thank you! I'm glad you found the information valuable. See you in the next video! 😊
Thank you it's only 630 in the morning and already learnt something new today. The only problem is that by the time I may be able to use this in about 14 years, the government would have changed the rules by then.
Thank you! I'm glad you found the information helpful. It's true that superannuation rules can change over time. Keeping informed and staying flexible with your financial planning will help you adapt to any changes that may come in the future. 😊
All the contents you covered are spot on! Thank you ❤
Thank you so much! I'm glad you found the content helpful. Your support means a lot to me. ❤
Its disgusting and indefensible. I submitted a petition online for this to be debated in parliament and was told to get stuffed as they will allocate assistance where they deem it is required.
This affects all low income workers.
I understand your frustration. It can be really challenging to navigate the system, especially when it feels like your concerns aren't being addressed. Your efforts to raise awareness and push for change are commendable. Let's hope continued dialogue and advocacy can lead to more equitable solutions for low-income workers.
Never expected that good, sound financial advice would cause such a hot bed of anger and hate. I guess thats 2024 for you. Thanks for your work Shi
Thanks for your support! Financial topics can definitely spark strong emotions, but I'm committed to providing clear and helpful information. Your appreciation means a lot. Stay tuned for more content! 😊
Yes, I saw that one when i did my tax return just a week ago.
Really clear and easy to follow. Thank you.
Thanks for the kind words! I'm glad you found it clear and easy to follow. 😊
Thank you for the reminder 5 year super catch up can only be used when balances are below 500k, ill need to adjust my schedule 😅
You're very welcome! 😊 Yes, keeping the balance below $500k is key for the 5-year super catch-up. Adjusting your schedule sounds like a smart move-best of luck with your planning!
Thank you. Can you explain how the Not for profit salary packaging work? I work in aged care (a non-for-profit org), how can I get the tax benefit? thanks.
Thanks for your comment! I might do a video on salary packaging for not-for-profits in the future. In the meantime, it's a good idea to consult a financial adviser or check with your employer's HR department for specific guidance on maximizing your tax benefits.
Worse is aged pensioners who work to afford a meager lifestyle then pay tax on their pension. It's disgusting...
It’s definitely a challenging situation for many aged pensioners. It's important to look for ways to support and improve the system for those who need it most. Thank you for sharing your thoughts.
You should have mentioned that in the Dennis example, he would have to meet the Work Test in order to make a concessional contribution to superannuation. If you can't meet the work test, concessional (i.e. tax deductible) contributions cannot be made. Non-deductible ones still can, but of course they can't reduce taxable income.
Thanks for the comment! 😊 In the example, Dennis is 60 years old (02:29), so he doesn't need to meet the Work Test to make concessional contributions. 🎉 This is because the Work Test applies to those aged 67 to 74.
Great information, thanks.
My pleasure. Glad it was helpful!😊
I have said that they need to increase it to 40,000 as minimum
Thanks for sharing your thoughts! 😊 Raising the tax-free threshold to $40,000 would definitely provide more relief for many people. It’s an idea that could help ease the tax burden, especially in today’s economic climate.
The$18200 tax free limit penalizes the lowest income earners.
The $18,200 tax-free threshold is meant to provide relief to low-income earners, but it's true that those earning below this amount still face financial challenges. The system aims to reduce the tax burden for lower incomes, yet more support might be needed to help the lowest income earners.
very helpfull thank you
Thank you! I'm glad you found it helpful. 😊
Didn't the Low and Middle Income Tax Offset end on 30 June 2022
Yes, the Low and Middle Income Tax Offset (LMITO) ended, but the Low Income Tax Offset (LITO) still exists.
Very helpful thank you.
You're welcome! I'm glad you found it helpful. 😊
What happens to your tax rate on your Australian income if you move overseas?
When you move overseas, your tax obligations depend on your residency status. For personalized advice, it’s best to consult a tax professional to consider your specific situation.
Thank you
You're welcome 😊
I'm just happy that the Boomer who bought the investment property 20 years ago with his spare change benefiting from negative gearing also gets to sell it completely tax free. What a great system.
Thanks for sharing your thoughts. The tax system can definitely seem uneven. It's important to stay informed and understand the various rules and how they apply.
Am I able to adjust my previous tax return with the cgt already paid so that I can do the carry forward tax contribution?
It’s unlikely because any carry-forward tax contribution you make now will be for FY25 and can only reduce your tax in FY25. It's always best to consult a tax professional for specific advice on your situation.
But nobody call live on $22000 if you make taxable income to $22,000. People don't know the low income offset but it automatically calculated by their payroll department .
Thank you for your comment. You're right; the low income offset is automatically calculated and is applied when you file your tax return. Reducing taxable income to $22,000 doesn’t necessarily mean that’s all the person has to live on. There could be other tax-free income or support from a spouse’s income. Everyone’s situation is different and unique! 😊
I do very nicely on a taxable income under $22,000. I collect a tax free income from a super pension account but also have income from share dividends and the occasional sale. Between the CGT discount and dividend imputation my taxable income is below the tax free threshold. The tax arrangements for fairly well-off oldies like me is outrageous but I won't be complaining. My main motivation is not having to pay provisional tax (where you pay estimated tax in advance).
@@vk3dgn lol Thats only if you got your own home and pay no rent or mortage. Today Australia is now call the unlucky country unlike the good old days . you might bought a home back thrn only $30,000 or even $10,000. Now it $2 million to buy a house . With $22000 you might just have enough to pay rent . Not enough in sydney rent now is over $600 a week . your pension from super wasn't tax free. you have pay 15% taxes when you have contribute to your super.
@@johnnywong1018 You are completely correct. Most of my life the government cared that people could afford a decent home to live in. In recent times they seem to have lost it, preferring mass immigration to risking a few quarters of negative growth. The commonwealth seems to be waging war on young people and I'm baffled at how they get away with it.
How can you claim 'nobody' when you don't know everybody?
Per financial year….friend of mine earned twice that amount by manipulating this.
Thanks for sharing! 😊 Good planning definitely goes a long way!
Jenny is going to take 85 years to save for a deposit for her first home…..
That does sound incredibly frustrating for Jenny. Saving for a home can indeed be a long and challenging process, especially with current housing market conditions. Let's hope there are ways to make this journey a bit shorter and more manageable for young people like her!
Great 22k buys me a bag of peanuts
Thanks for your comment! The examples in the video are meant to illustrate different scenarios and strategies that can be applied based on individual circumstances. This video isn’t about reducing disposable income just to save tax. Reducing taxable income to the effective tax free threshold doesn’t necessarily mean that’s all the person has to live on. There could be other tax-free income or support from a spouse’s income. Everyone’s situation is different and unique!
I just wish i could pay my tax in one lump sum at the end of the year. Paid fortnighly so best you can do is payg installments monthly. Not much benefit. Maybe i can ask too be paid by multiple different companies in the group 😂 claim tax free threshhold in all and then use that money during the year then get big bill at years end is that legal ?😂
Can only claim one tax free threshold it's based off your tax file number
@@stoives pretty sure I had claimed two before in 2004. When starting out. Being ignorant.
Thanks for your comment! It's generally not legal to claim the tax-free threshold from multiple employers if you have more than one job. Doing so can lead to underpayment of tax and a significant bill at the end of the year. It's best to discuss tax planning with a professional to find the most effective and legal strategies for your situation.
Click bait folks. 18200 still Dennis sold a property so he is rich anyway. The middle lady is making before tax contributions. If she is so poor that she wants to reduce her tax to about 20 k income she is struggling anyway. So why would she make a before tax contribution.
@@paulkyriakopoulos3444 thx. I’ve been playing the 18,200 rule since rates started going up again but I just earn interest on fixed deposits as a semi retiree
Thanks for your comment! Reducing taxable income to the tax-free threshold doesn’t necessarily mean that’s all the person has to live on. There could be other tax-free income or support from a spouse’s income. The examples in the video are meant to illustrate different scenarios and strategies that can be applied based on individual circumstances. Everyone's financial situation is unique, and what works for one person might not work for another.
@Bogkat - you haven't thought through the spouse aspect. The middle lady may be struggling on paper but if her husband is the main income earner instead of struggling they get a healthy tax return instead of paying tax. My wife and I do it all the time. Difference between a nice holiday each year and staying at home for some. Or wack it on the home loan!
@@blairhocking1921 Wack it on the home loan. 👍
@@OZRuiShiwhat types of income might this be? Income that allows her to still remain below the approx 18200 threshold ?
❤
Never trust a backpacker to give tax advice.!!!
If you're making $140,000, the rate jumps from 30% to 45%. I would ask their boss to cut my salary for just $1 to avoid paying extra $21,000 tax? That's legal and a smart way to avoid paying heavy tax.
Your only paying 45% on the ammont above 140k
@@stoives it's 37% from 135k to 190k in 2024. For me and Mrs both on about 150k. I'm just going to drop hours a bit. Disincentised to pay for welfare of others. If I lose my job I can't get looking for work allowance, I have income protection insurance but that doesn't kick in for three months. By retirement age I will fail asset tests. Can't get family tax benefit a or b. Etc. missed out on fhog, building boost, home saver etc. -millennial.
@@nitehawk9270 i mean if you have enough deductions to push you under that cap
@@stoives yep, I don't know if people don't understand this, or willingly ignore it as if to sound like they're being hit harder than they actually are in some sort of "pity my woes" pitch :shrug:
@@pldaniels Perpetual victims
Me listening to a Chinese person talking about Australian tax... what is going on?
Racism probably
She isn't Chinese. She also spoke for 7 minutes. You wrote one sentence, and I can judge you are not a smart man.
Get back under your rock.
Putting her ancestry aside, she's probably as Australian as you are.
@@raywlazlo6886 since 1851
The ATO page says 'unused concessional contributions cap amounts from up to 5 previous years'. By your calculation, it looks like the super contribution for next financial year (FY2025) is also deductible from FY 2024 income, right?
Thank you for your question! We are currently in FY25 and the video uses rules applicable in FY25. You can use the unused concessional cap amounts from the previous 5 years (FY20 to FY24) along with the current year's cap (FY25). Hope this clarifies things!
Thank you
My pleasure 😊