Thanks for the video, very informative. I have a question though, at 4:40, when you talk about Loans. You say the rich borrow money from the bank to use as spending money, and use their assets as collateral, thus avoid paying taxes. But then, what money do they use to pay back the loan?
@@smokey6455 I'm trying to figure out the same thing.... It wouldn't make sense to sell their stocks or accept dividends which are a taxable income which then decreases their portfolio which then decreases the collateral they can use against a loan. Is it in the wording? They don't pay income tax, but they do pay interest on their loans which is the lesser of the two? Then in order to pay for the interest on the first loan, they get a new loan against their newly successful portfolio thanks to inflation and growth... do they repeat this until they die??
Thanks for another great video Raymond :) I'm 26 and working full time in local government. For the first time this year I've had to pay tax because the LITMO ended. I imagine a lot of others are in the same boat. I already salary sacrifice but might try to increase it. I'd love to see a video regarding the medicare levy surcharge that you get at 31 and the tax benefits of private health insurance. Have a great day!
Great to see that you've been consistently salary sacrificing, I think as long as you don't need the extra money then salary sacrificing more is never a bad idea!
This comment angers me, your salary sacrifice works differently to all us hard working Australians that’s why you have to pay tax because your getting a SHT load more tax free money put back into your account from salary sacrifice, government is fkd
Non government workers only have 1 option to salary sacrifice which is put it in your super and still be taxed at 15% instead of 32.5% however government workers can salary sacrifice MUCH more and the exact dollar figure that was sacrificed is put back into their own personal bank account TAX FREE, my mum does it she sacrifices 600$ and 2 days later is payed 600$ so it lowers her tax bracket and also is given back 600$ tax free, absolute criminal the government is corrupt, this year 900 BILLION dollars was taxed and we’re do us tax payers see any benefit what so ever? We see fk all, corruption at its finest
@@leonmorris5602 my tax works the same as everyone else?? I salary sacrifice into super. Not a novated lease or anything.... i dont get your point? I still have the same tax free thereshold and am PAYG not salary. No fringe benefits in local government.
Read an article that stated that 77% of landlords only had 1rental property and that most of these were middle class mums and dads. So not necessarily rich. The issue is the value of those properties, esp as it IS the rich that have the commercial properties and they are worth way more than a house. I want to know how the hell people under 30 have multiple rental places, how the hell are they getting loans? I have struggled with each time i have refinanced and am on a good wage and have a hell of a lot of equity. I know if they had lent me the money i would have many rental places but they didn't lend me money.
When you said the rich people take out a loan and live off the loan - how do they pay it back? I'm quite new to this but it's very interesting to me. Thanks for the video 👍
About the capital gains discount section. You said, if I was to sell $200,000 of shares and I had held those shares for over 12months. I would get a 50% discount making me only have to pay tax on half at a rate of 12.4%. But, to invest $200,000 you have to make $200,000 therefore I am still taxed on that $200,000 earned income and have to pay $60,000 in tax. Therefore my investment would be $140,000 and I would need a capital gain on that investment of $60,000 to break even on the tax I paid originally, which means if I made $60,000 capital gain on my $140,000 investment I would receive a CGT discount of 50% on that $60,000 and have to pay $11,000 tax and would have made $48,000 and I also wouldn’t have been able to spend or invest that money for 12 months. Also, if I was to go and buy cars or anything stupid, I would pay taxes on those purchases also. Resulting in losing more money. Another thing, investments don’t always go well so I’m risking losing more than the initial tax amount. Summary, doubled taxed, risk on investment and additional spending taxes. Correct me if I’m wrong, but this doesn’t seem like a viable solution considering the time it takes and the risks required.
I think what was not properly explained in the video was the cost base of the investment vs the total return, which includes a profit i.e. "capital gain". So If I first earnt $200,000 and paid $60,000 in income tax leaving $140,000, then invested the $140,000, held it for over 12 months, then sold it off and had a total result of $200,000 I need to first subtract my cost base (which I've already paid tax on) of $140,000, leaving me with $60,000 capital gain but I only need to pay a CGT on half of that, which is $30,000, and at my marginal tax rate. If I earnt nothing else that tax year; * the first $18,200 is tax free * the remaining $11,800 is taxed at 19%, which is $2,242 .....so even though I sold all my assets and received $200,000. I only had to pay $2,242 (not tax advice)
Great video bro. I was wondering if buying or building a house right now is a good investment decision as RBA continue to increase interest rates? Cheers bro :)
Hey mate, no one has a crystal ball as to how the interest rates will change overtime but I wouldn't bank on it going back down to the rates we had during COVID
My Dad owned a civil construction business and keep 5% net profit after taxes& expensess the government total crooks since bob hawke . 10 million reveune not profit it costs pushed up by government @@raymondla
@@raymondla earning $45000 a yr fulltime . Everything tax much less in my born country in australia there more than 125 taxes why luxury cars & fuel expensive here . 2018 c63s back home is $67000 . No luxury cat tax " no stamp duty & no import duty
Are any of you getting a tax refund this year?
Thanks for the video, very informative. I have a question though, at 4:40, when you talk about Loans. You say the rich borrow money from the bank to use as spending money, and use their assets as collateral, thus avoid paying taxes. But then, what money do they use to pay back the loan?
@@smokey6455 I'm trying to figure out the same thing....
It wouldn't make sense to sell their stocks or accept dividends which are a taxable income which then decreases their portfolio which then decreases the collateral they can use against a loan.
Is it in the wording? They don't pay income tax, but they do pay interest on their loans which is the lesser of the two?
Then in order to pay for the interest on the first loan, they get a new loan against their newly successful portfolio thanks to inflation and growth... do they repeat this until they die??
@@australiasian I've been looking all over for the answer but can't find it. If you stumble across it, remember to come back here and let me know 😅
Thanks for another great video Raymond :) I'm 26 and working full time in local government. For the first time this year I've had to pay tax because the LITMO ended. I imagine a lot of others are in the same boat. I already salary sacrifice but might try to increase it. I'd love to see a video regarding the medicare levy surcharge that you get at 31 and the tax benefits of private health insurance. Have a great day!
Great to see that you've been consistently salary sacrificing, I think as long as you don't need the extra money then salary sacrificing more is never a bad idea!
This comment angers me, your salary sacrifice works differently to all us hard working Australians that’s why you have to pay tax because your getting a SHT load more tax free money put back into your account from salary sacrifice, government is fkd
Non government workers only have 1 option to salary sacrifice which is put it in your super and still be taxed at 15% instead of 32.5% however government workers can salary sacrifice MUCH more and the exact dollar figure that was sacrificed is put back into their own personal bank account TAX FREE, my mum does it she sacrifices 600$ and 2 days later is payed 600$ so it lowers her tax bracket and also is given back 600$ tax free, absolute criminal the government is corrupt, this year 900 BILLION dollars was taxed and we’re do us tax payers see any benefit what so ever? We see fk all, corruption at its finest
@@leonmorris5602 my tax works the same as everyone else?? I salary sacrifice into super. Not a novated lease or anything.... i dont get your point? I still have the same tax free thereshold and am PAYG not salary. No fringe benefits in local government.
Read an article that stated that 77% of landlords only had 1rental property and that most of these were middle class mums and dads. So not necessarily rich. The issue is the value of those properties, esp as it IS the rich that have the commercial properties and they are worth way more than a house.
I want to know how the hell people under 30 have multiple rental places, how the hell are they getting loans? I have struggled with each time i have refinanced and am on a good wage and have a hell of a lot of equity. I know if they had lent me the money i would have many rental places but they didn't lend me money.
When you said the rich people take out a loan and live off the loan - how do they pay it back? I'm quite new to this but it's very interesting to me. Thanks for the video 👍
You can't mention the cost amount of negative gearing without mentioning how much the government has made in positive geared property and sales
Nice work! Thanks for sharing this. I have been helping people around the world to Incorporate in Georgia 🇬🇪 sincr 2017! Here you pay just 1% of tax
About the capital gains discount section. You said, if I was to sell $200,000 of shares and I had held those shares for over 12months. I would get a 50% discount making me only have to pay tax on half at a rate of 12.4%. But, to invest $200,000 you have to make $200,000 therefore I am still taxed on that $200,000 earned income and have to pay $60,000 in tax. Therefore my investment would be $140,000 and I would need a capital gain on that investment of $60,000 to break even on the tax I paid originally, which means if I made $60,000 capital gain on my $140,000 investment I would receive a CGT discount of 50% on that $60,000 and have to pay $11,000 tax and would have made $48,000 and I also wouldn’t have been able to spend or invest that money for 12 months. Also, if I was to go and buy cars or anything stupid, I would pay taxes on those purchases also. Resulting in losing more money. Another thing, investments don’t always go well so I’m risking losing more than the initial tax amount. Summary, doubled taxed, risk on investment and additional spending taxes. Correct me if I’m wrong, but this doesn’t seem like a viable solution considering the time it takes and the risks required.
I think what was not properly explained in the video was the cost base of the investment vs the total return, which includes a profit i.e. "capital gain".
So If I first earnt $200,000 and paid $60,000 in income tax leaving $140,000, then
invested the $140,000, held it for over 12 months, then sold it off and had a total result of $200,000
I need to first subtract my cost base (which I've already paid tax on) of $140,000, leaving me with $60,000 capital gain
but I only need to pay a CGT on half of that, which is $30,000, and at my marginal tax rate.
If I earnt nothing else that tax year;
* the first $18,200 is tax free
* the remaining $11,800 is taxed at 19%, which is $2,242
.....so even though I sold all my assets and received $200,000. I only had to pay $2,242
(not tax advice)
Great video bro. I was wondering if buying or building a house right now is a good investment decision as RBA continue to increase interest rates? Cheers bro :)
Hey mate, no one has a crystal ball as to how the interest rates will change overtime but I wouldn't bank on it going back down to the rates we had during COVID
you didn't talk on paying 0 dollar in tax strategy
Hey Raymond, great video very helpful. I was just wondering what software you use to create the graphics in this video
Thanks! All the editing was done in premier pro
I moved to NZ from AUS so I can pay 0% tax for 4 years
Wait, what?! Haha
Taxes are BS
wrong you pay min of 45% taxes on min wage in australia add alot of hiden taxes
You’re saying someone who earns $15k per year will pay 45% in taxes?
what?
My Dad owned a civil construction business and keep 5% net profit after taxes& expensess the government total crooks since bob hawke . 10 million reveune not profit it costs pushed up by government @@raymondla
@@raymondla earning $45000 a yr fulltime . Everything tax much less in my born country in australia there more than 125 taxes why luxury cars & fuel expensive here . 2018 c63s back home is $67000 . No luxury cat tax " no stamp duty & no import duty
Duties " gst & excise taxes