Funny Stuff Tax Policy

What the Federal Government spends your taxes on…

So if you earn a bit over $80k in a year you end up paying about $20k in tax – this includes the medicare levy as it should as hypothecated revenue (being revenue collected for specific expenditure) cannot occur under our Constitution so lets just call the medicare levy additional income tax…

But what does the Federal government do with this $20k? Well now we have an answer. And so will everyone else who gets an income tax assessment.

If only we got the same document in relation to the GST we pay, the rates we pay to local councils, the stamp duties we pay to states…

But now you know that for every $1 you pay it tax, a pensioner gets 15c, a parent gets 10c, a disabled person gets 7c, an unemployed person gets 3c, 17c goes to health (states fund more), 8c goes to education (state fund more), defence gets 8c, a “general” public servant, probably in the highest income city in Australia… canberra… gets 7c, and interest on debt gets 3c. Everything else is little bits and pieces.

Do you like this budgeting…

By Ken Mansell

As a stay at home Dad most of the week this is my way of pretending I am still the tax counsel of ASX and SEC listed companies, working at big 4 firms, working at the Federal Treasury, on the Henry Review and at Parliament House for the previous government.

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