Play Nice Politics # 4 - The madness continues here.....

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[Slippery Pete]

Where COVID-19 has and hasn't spread since states reopened: Analysis

A look at public health data in several states by ABC News revealed the locations of the most COVID-19 outbreaks following their reopenings.

abcnews.go.com

Bars, gyms and restaurants. Those were just a few settings health experts warned could become hotbeds for COVID-19 spread as states began reopening in the spring and summer of 2020 following the first and second waves of the coronavirus pandemic in the United States.

Yet, public data analyzed by ABC News appears to tell a different story. The data from states across the country suggests specific outbreak settings (including bars, gyms, restaurants, nail salons, barbershops and stores -- for the full list, see graphic below in story) only accounted for a small percentage, if any, of new outbreaks after the pandemic's inital wave in 2020.

 

[Slippery Pete]

Is there absolutely anything the left touches that doesn’t turn to s**t?

Venice Beach boardwalk in California is now ‘dangerous’ homeless encampment

The LA neighborhood – site of the free-spirited boardwalk frequented by colorful street performers – has been hit with spate of violent incidents, Fox News reported.

nypost.com

 

[BRL121]

Is he talking about if you’re five minutes from retiring though?

I can’t imagine it’s a sound strategy to put after-tax income into super for a person who’s a fair way off retiring...what have I missed?

Not five minutes, five years! It's a no-brainer at this time. It could also be a good strategy when younger, but only if you have a source of "spare" cash, i.e., you won't need to tap it routinely. You can set this up for your wife as well and get double the benefit of tax minimization.

For example, if you are younger, but have chosen to invest a wad of spare cash outside of super, you will be able to shift it to super, take the same investment options, and save on tax (0% in pension account, only 15% in accumulation account). If you have a high marginal tax rate, then this is a no-brainer. The only downside is that you won't be able to access the money until old enough, so the closer you are to that age, the less of a limitation that is.

 

[relapse]

Is he talking about if you’re five minutes from retiring though?

I can’t imagine it’s a sound strategy to put after-tax income into super for a person who’s a fair way off retiring...what have I missed?

The earlier you start the better

The hard slog is the initial period to get your super over 150k, once you start hitting that point that's where it starts to grow exponentially.

The earlier you can hit that point, the better off you'll be when you retire.

Investing money just before you retire won't give you the return compared to a slow investment over a much longer period of time.

Let's say that super earns around 5% (a conservative figure)

If you were to put in $100 a fortnight into your Super for 40 years that investment would roughly turn into 300k (100k contributed and would have earned 200k in growth) when you retire.

Whereas investing 100k into your Super a few years before you retire will not get you anywhere near the same level of growth

The most important thing about super is not so much the contributions themselves, but the compound growth of what you have invested over a long period of time.

 

[Slippery Pete]

The earlier you start the better

The hard slog is the initial period to get your super over 150k, once you start hitting that point that's where it starts to grow exponentially.

The earlier you can hit that point, the better off you'll be when you retire.

Investing money just before you retire won't give you the return compared to a slow investment over a much longer period of time.

Let's say that super earns around 5% (a conservative figure)

If you were to put in $100 a fortnight into your Super for 40 years that investment would roughly turn into 300k (100k contributed and would have earned 200k in growth) when you retire.

Whereas investing 100k into your Super a few years before you retire will not get you anywhere near the same level of growth

The most important thing about super is not so much the contributions themselves, but the compound growth of what you have invested over a long period of time.

All absolutely true but my query was more around the tax side of it as BRL121 mentioned putting after-tax money into it.

For example, if you are younger, but have chosen to invest a wad of spare cash outside of super, you will be able to shift it to super, take the same investment options, and save on tax (0% in pension account, only 15% in accumulation account). If you have a high marginal tax rate, then this is a no-brainer. The only downside is that you won't be able to access the money until old enough, so the closer you are to that age, the less of a limitation that is.

Go easy on me because tax & super is all Chinese to me... But hasn’t that money already been income-taxed... so aren’t you paying tax twice by putting it in super? How are you better off doing that, than investing it somewhere else?

 

[Mr_Moogle]

Here's a question for you finance experts, if you take profit on the stockmarket and park it in super, is there any kind of reduction in tax paid? or would you be better off just salary sacrificing an equivalent amount?

 

[kirky]

All absolutely true but my query was more around the tax side of it as BRL121 mentioned putting after-tax money into it.



Go easy on me because tax & super is all Chinese to me... But hasn’t that money already been income-taxed... so aren’t you paying tax twice by putting it in super? How are you better off doing that, than investing it somewhere else?

When you turn 60 and turn it into the pension phase you have zero tax. If you still hold it outside super when you turn 60 depending where you sit income wise (with tax thresholds) you still pay tax on the earnings. Think I’ve got that right.

My understanding super is generally the most tax effective way other than the fact you don’t have access until you reach retirement/preservation age.

 

[Slippery Pete]

When you turn 60 and turn it into the pension phase you have zero tax. If you still hold it outside super when you turn 60 depending where you sit income wise (with tax thresholds) you still pay tax on the earnings. Think I’ve got that right.

My understanding super is generally the most tax effective way other than the fact you don’t have access until you reach retirement/preservation age.

So his advice purely relates to if you are 60+

 

[kirky]

So his advice purely relates to if you are 60+

No, not necessarily.

 

[mistylake]

Is there absolutely anything the left touches that doesn’t turn to sh*t?

Venice Beach boardwalk in California is now ‘dangerous’ homeless encampment

The LA neighborhood – site of the free-spirited boardwalk frequented by colorful street performers – has been hit with spate of violent incidents, Fox News reported.

nypost.com

This sounds like a decline in work prospects (Covid related) people getting evicted and ending up on the streets. From what I’ve heard US social security is worst that here and that’s saying something. I remember driving through box town back in the early 90’s. Hundreds of cardboard fridge box homes near one of the social security offices in downtown LA. Pretty depressing stuff very visible. The problem just moves postcode I guess.

 

[mistylake]

Here's a question for you finance experts, if you take profit on the stockmarket and park it in super, is there any kind of reduction in tax paid? or would you be better off just salary sacrificing an equivalent amount?

Self managed super is treated like a separate entity. It’s a type of trust. A bit like an individual that has different rules. If you’re profits are taken in your name because you are the owner, I believe they would be part of your taxable income. You could put what’s left into your super and any further profits while in your super are taxed at the super rate.

I seem to remember back when GST was brought in 2000 you were allowed to do a fairly large dump of cash into superannuation and pay no tax on it. Like if you sold a house. It was like an amnesty type thing. Seemed like a scam set up for politicians to benefit from. A John Howard special.

 

[BRL121]

All absolutely true but my query was more around the tax side of it as BRL121 mentioned putting after-tax money into it.



Go easy on me because tax & super is all Chinese to me... But hasn’t that money already been income-taxed... so aren’t you paying tax twice by putting it in super? How are you better off doing that, than investing it somewhere else?

Certainly, the money has already been taxed. It can't be taxed again whatever you do. However, if you leave it outside of super, any earnings on it will be taxed at your marginal rate, probably 30~50%. On the other hand, if you transfer the money into super (preferably an industry fund) the earnings on it will either be tax-free, if in a pension account, or taxed at only 15%, if in an accumulation account.

 

[BRL121]

Here's a question for you finance experts, if you take profit on the stockmarket and park it in super, is there any kind of reduction in tax paid? or would you be better off just salary sacrificing an equivalent amount?

Yes, there is a reduction in tax paid: see my other post, either 0% or 15% on earnings.
However, salary sacrificing provides a bigger benefit, since you can claim a tax deduction on the way in as well.

They fix this, however, by only allowing ~25K p.a. total under the latter channel, and this includes both the employer contribution and any salary sacrifice that you do, with penalties if you go over the limit.
On the other hand, you can contribute $110K p.a., also with bring-forward provisions, of the already-taxed funds.

In practice, all of this depends on your financial ability to contribute, which is usually pretty minimal at younger ages, so the sweet spot for all of this, unless you are rich in the first place, is as you are approaching retirement. But if you are investing outside super already, then you can probably afford to do this now, and it is a no-brainer, especially if you are on a higher marginal tax rate.

 

[mistylake]

What is going on in politics with all these sex related scandals. Is it an escalation in these incidences, more reporting or some other thing. Has it always been this way. I can’t think of anyone of note being prosecuted but there seems to be constant noise about it.

Gareth Ward reveals he is NSW MP under investigation over alleged sexual violence

Kiama MP Gareth Ward removes himself from the Liberal Party after revealing he is being investigated by NSW Police over sexual violence allegations dating back to 2013. Mr Ward says he has yet to be contacted by police.

www.abc.net.au

 

[Mr_Moogle]

What is going on in politics with all these sex related scandals. Is it an escalation in these incidences, more reporting or some other thing. Has it always been this way. I can’t think of anyone of note being prosecuted but there seems to be constant noise about it.

Gareth Ward reveals he is NSW MP under investigation over alleged sexual violence

Kiama MP Gareth Ward removes himself from the Liberal Party after revealing he is being investigated by NSW Police over sexual violence allegations dating back to 2013. Mr Ward says he has yet to be contacted by police.

www.abc.net.au

It's not surprising to me. Politics is a boys club. The culture of accepting this sort of thing is gradually starting to change though. We saw this with the #metoo movement. Hollywood with their woke capitalism, pretending to be progressive, was really just a breeding ground for sexist assholes. I can only imagine it's even worse in politics.

 

[kirky]

Yes, there is a reduction in tax paid: see my other post, either 0% or 15% on earnings.
However, salary sacrificing provides a bigger benefit, since you can claim a tax deduction on the way in as well.

They fix this, however, by only allowing ~25K p.a. total under the latter channel, and this includes both the employer contribution and any salary sacrifice that you do, with penalties if you go over the limit.
On the other hand, you can contribute $110K p.a., also with bring-forward provisions, of the already-taxed funds.

In practice, all of this depends on your financial ability to contribute, which is usually pretty minimal at younger ages, so the sweet spot for all of this, unless you are rich in the first place, is as you are approaching retirement. But if you are investing outside super already, then you can probably afford to do this now, and it is a no-brainer, especially if you are on a higher marginal tax rate.

That can’t be right that you can claim a tax deduction if you salary sacrifice or have I misinterpreted what you are saying.

 

[BRL121]

That can’t be right that you can claim a tax deduction if you salary sacrifice or have I misinterpreted what you are saying.

Maybe I could have worded it better, but the gist is correct. The salary sacrifice contributions are from before-tax money, so yes. If you are employed, the employer takes care of the process and you don't make any claim in your tax return. These are concessional contributions.

You can also make non-concessional contributions from after-tax money up to 110K p.a.

 

[kirky]

Maybe I could have worded it better, but the gist is correct. The salary sacrifice contributions are from before-tax money, so yes. If you are employed, the employer takes care of the process and you don't make any claim in your tax return. These are concessional contributions.

You can also make non-concessional contributions from after-tax money up to 110K p.a.

Yep, that is how it worked for me. Salary sacrifice to the maximum (inc employer contributions) and reduce tax payable.

Non-concessional limit which you can bring forward an additional two years (three years in total) if you get a windfall.

 

[mistylake]

Whack.

Dear Australia - Do The Right Thing

An Open Letter from the Outside World

joelbowman.substack.com

 

[mistylake]

Australian have the Byron Bay blues festival shut down a few days before it happens, over one case of corona. Meanwhile in the country with 600K deaths. We’ll be lucky to see anything better than Fred smith with his drum machine at the bowls club befor 2023.

 

[mistylake]

That can’t be right that you can claim a tax deduction if you salary sacrifice or have I misinterpreted what you are saying.

I would have thought if you salary sacrifice into a super account that portion of your wage is taxed at 15% instead of your top marginal rate. Theoretically if you put so much wage into super that it was under the tax free threshold you’d be getting taxed 15% on money that should be tax free.

 

[Vader]

This highlights the problem we have with re-opening the borders, even when the population is (mostly) vaccinated:
https://www.news.com.au/world/coron...d/news-story/84a90b6a9ac0839457fe621ea41ffa51
60% of the Seychelles' population has been vaccinated, so they have re-opened the border for tourists. As a result, they now have more cases (per capita) than India. Vaccination isn't preventing the virus from continuing to circulate.

Singapore use a traffic-light system to manage visitors to the island nation. This is the system which many are suggesting Australia should adopt (given that we can't remain isolated forever), and had people holding Singapore up as "the art of the possible". This system too has broken down, with 71 cases in the last week - 15 of which are "unlinked", suggesting that it's active in the community.
https://www.news.com.au/travel/trav...e/news-story/67f50b550a0f2871b8b143d89faaad1b

 

[kirky]

This highlights the problem we have with re-opening the borders, even when the population is (mostly) vaccinated:
https://www.news.com.au/world/coron...d/news-story/84a90b6a9ac0839457fe621ea41ffa51
60% of the Seychelles' population has been vaccinated, so they have re-opened the border for tourists. As a result, they now have more cases (per capita) than India. Vaccination isn't preventing the virus from continuing to circulate.

Singapore use a traffic-light system to manage visitors to the island nation. This is the system which many are suggesting Australia should adopt (given that we can't remain isolated forever), and had people holding Singapore up as "the art of the possible". This system too has broken down, with 71 cases in the last week - 15 of which are "unlinked", suggesting that it's active in the community.
https://www.news.com.au/travel/trav...e/news-story/67f50b550a0f2871b8b143d89faaad1b

Which vaccine did both the Seychelles and Singapore have? Is it a possibility that the different vaccines have different properties when it comes to passing COVID-19 on.

International tourism is truly stuffed if this is the case tho. Unless of course, mandatory 14 day quarantine at home becomes an option down the track.

 

[kirky]

No matter how crazy one thinks the Democrats may be the Republicans have the title of “The Craziest” all to themselves -

Texas passes heartbeat bill that would ban all abortions after 6 weeks

The Texas Senate voted on Thursday to pass a bill that would ban all abortions after six weeks - before many women even know they are pregnant. The Republican governor is set to sign it into law.

www.dailymail.co.uk

 

[Vader]

Which vaccine did both the Seychelles and Singapore have? Is it a possibility that the different vaccines have different properties when it comes to passing COVID-19 on.

International tourism is truly stuffed if this is the case tho. Unless of course, mandatory 14 day quarantine at home becomes an option down the track.

I don't know what vaccine Seychelles were using, but my guess would be one of the Chinese vaccines. The western countries have been hogging most of the AZ/Pfuzer/J&J/Moderna vaccines, leaving China to do vaccine diplomacy with the rest of the world.

Singapore's issue isn't vaccination, it's the failure of their vaunted traffic light system.

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