Can You Live off $18,500 Per Year / $350 Per Week?

Windows7forever on 29/08/2018 - 05:26
Last edited 29/08/2018 - 05:28

If you can keep your income down to a low level you can effectively pay zero tax up to $18500 in one financial year. (I believe the government is rumored to increase this to 20k within the next few years which is good news for low income earners).

My situation: I have an investment property which is 100% positive and earns about $15k per year clear. I also work full time on an average wage of $50k per year. I really don't like my job very much and find I'm paying too much tax at the end of the year. Basically, I feel like I'm working to pay the tax man and it isn't fun.

I'm very good at keeping my expenses low and don't need much money to live off. Most of what I earn just goes into savings. My biggest expense is maintaining a vehicle but I am also considering disposing of it and using alternative means of transport. There are many ways to keep overheads low but I don't want to stray off topic.

Maybe I will quit my job and travel or find a part time/casual job and enjoy more leisure time and less working hours. I won't be able to save much money but the extra leisure/free time to pursue other things in life might be more worthwhile than a repetitive, meaningless 9 to 5 job. Unfortunately part time work and other so-called "flexible working arrangements" are far less accommodated in the private sector unless you are pregnant/breeding/have kids.

Poll Options

  • 133
    Yes
  • 276
    No
Financial

Comments

      • Windows7forever on 30/08/2018 - 06:07
        +4

        Or the fisherman he feels so much stress/pressure to work excessive hours chasing the elusive dollar that he drops dead from a heart attack within the next 20 years

      • Sean R on 01/09/2018 - 00:54

        Or maybe the 'in the end' never eventuates because after working like crazy for 20 years on building an empire the Mexican drops dead of a stress-induced heart attack at 50 ;)

        Of course, there's also no guarantee his business won't fail, causing the Mexican and his family to starve.

        On a serious note, I agree that financial security is important. What the Mexican probably needs is some savings to let him weather a bad season (no pun intended), but chasing an IPO probably doesn't fit his goals.

        EDIT: Just saw 87andcry's post, which was hiding over the page. Snap!

        • HighAndDry on 01/09/2018 - 04:29

          Haha they do say smart minds think alike, even if I disagree - chasing an IPO is a strawman imo, no one really expects a fisherman to do that. But chasing more income that shields the fishermen from smaller shocks to his yearly or monthly income stream, while probably adding stress, is definitely preferable and a smaller risk to long-term health than the chances of one such shock rendering the fisherman destitute if such an income cushion wasn't there.

  • nubzy on 29/08/2018 - 09:40
    +2

    Housing is the only issue and why most people have to work, it costs a bloody fortune. If you were happy to live in a van, already owned a home or found a cheap plot of land and built a small property with solar power etc then it might be possible. I am like you and would rather avoid working full time/for the man if I can help it. I'm smart with money and look for ways to make it go further, invest etc. If housing was taken care of, I could easily live on $350 per week no issues at all. Work/life balance is very important for me.

  • Orpheon on 29/08/2018 - 09:45
    +1

    A very simple question to you OP which will address the premise of your conundrum:

    Assuming your expenses stay exactly the same, if you had the option of earning twice your current wage ($100k), with the knowledge that:

    • your take home income will increase from $43,203 to $75,386 (x1.74 more)
    • yet you'd be paying the taxman $24,632.00 instead of your current $7,797.00 income tax (x3.15 more)

    Would you do it?

    • Windows7forever on 30/08/2018 - 06:12

      A very good hypothetical question but there are many variables to consider such as job satisfaction, work/life balance, career prospects, etc.
      On second thoughts, that's a crap load of hard earned tax money that will probably get wasted or mis-spent by an entitled and useless government. I think I'd probably pass.

      • JungliChilli on 30/08/2018 - 07:07

        Seems like op has made up his mind. Close the thread already?

      • dharmesht on 30/08/2018 - 10:40
        +2

        Statement seems more like, "Don't want to pay more tax, so I won't earn more" :-)

  • shaybisc on 29/08/2018 - 10:00
    +2

    You can do it easy but won't you lose your place in the rat race? Then if you get married + kids you will need to make lots more money and you'll have a poor work history yahda yahda yahda.

  • tsunamisurfer on 29/08/2018 - 10:49
    +5

    50 grand and you are complaining about paying oo much tax, are you out of your f'ing mind?

    I pay more tax than you earn in income, I get no LITO (you will), I am exposed to Medicare Levy Surcharge yet when I buy Private Health I get a reduced rebate.

    • mskeggs on 29/08/2018 - 11:38
      +18

      Thanks for your tax contribution.
      It is important to remember we choose to work more for higher incomes because we value the things money delivers, but it isn't the only choice.

    • HighAndDry on 29/08/2018 - 11:40
      +2

      But you choose to work more to earn more, and you benefit from that higher income. Sure, you pay more taxes, but that's an (as yet, legally) unavoidable consequence of your choice to earn more.

  • Gronk on 29/08/2018 - 10:55
    +1

    Hell no! I probably spend that on beer alone…

    • mskeggs on 29/08/2018 - 11:38
      +1

      I sense homebrew in your future.

      • HighAndDry on 29/08/2018 - 11:40

        But how dare he deprive the taxman of the duties on alcohol sales which fund the public?

    • Windows7forever on 30/08/2018 - 06:15

      I drink ALdi goon wine. It tastes like red cordial :)

  • potm on 29/08/2018 - 11:11
    +4

    Total tax on 50k income this tax year is $8017, about 16%.
    I haven’t included rental income in that, there’s likely to be a lot of deductions involved.

    If you want to work less and live a more minimal lifestyle then that’s fine.
    Don’t blame it on tax though, you pay very little on your level of income.

  • Herbse on 29/08/2018 - 11:35

    Go for it. Stick it to the man and pay no income wages. They don't benefit you anyway. It's biased towards breeders right? Those scum who do nothing to contribute to society.

  • [Deactivated] on 29/08/2018 - 11:40
    +2

    65k gross income and you're peeved by taxes?

    Back on topic, I could. I grow my own feed and when I'm lucky, I get some venison and fish. When I'm unlucky, I'm vegetarian.

    With Vic's upcoming solar rebates, if I have a 7kw system, I'm set.

    Just have to pay rates and fuel which does come up to ~$18k pa.

    • lostn on 30/08/2018 - 00:49

      18k in rates? For your farm I assume?

      • [Deactivated] on 30/08/2018 - 08:44

        And fuel.

  • mskeggs on 29/08/2018 - 11:43
    +13

    The biggest hurdle is if you end up with relationships where other parties have different priorities.
    If you choose to deviate from the median too far, and not working through choice and living a very frugal life is quite a way from the middle, you will either have conflict with people you are forced to have relationships with (the sister that wants to take Dad out for a flash lunch for Father's Day and hopes you will split the bill), or you limit your options (I imagine Tinder is on hard mode when you say you choose to live a low income life).

    I know some people who live low income lives through choice, and it creates ongoing friction with their kids, even when they have been raised to reject financial wealth as an important measure.

  • Bills22 on 29/08/2018 - 12:05
    +3

    OP doesn't sound like he has any ambition in life to succeed, though who am I to judge? Just be calculative, live off the investment and minimum income, paying little or no tax. If that is forward thinking, then good luck.

    In terms of living on $350 per week? Have you factored in other expenses? Such as your monthly internet/phone bill for posting and viewing deals on Ozbargain? Oh, don't forget the electricity bill as well.

    It's doable when you're living at home etc. and don't have much or if any ongoing costs to worry about.

    • mysterytal on 29/08/2018 - 12:13
      +1

      "your monthly internet/phone bill"

      I pay about $1 per month for mobile internet. I don't think that's going to break the bank.

      "Oh, don't forget the electricity bill as well."

      Good point. We have solar panels.

      • Bills22 on 29/08/2018 - 13:29

        If you believe you are all set, then you are all set, buddy.

      • whooah1979 on 29/08/2018 - 17:50

        I pay about $1 per month for mobile internet.

        Are you with tpg $1 sim?

        • mysterytal on 29/08/2018 - 18:06

          Currently using Catch Connect and recently been on Kogan's 99 cent offer or Vodafone's $60 cash back for spending $40 or Amaysim's 6 month Groupon offer for about $6. There's so many offers I don't pay much yet get plenty of minutes, texts and data.

  • pernunz on 29/08/2018 - 12:13
    +3

    It's not an option of all or nothing.

    Why not try go down to 2, 3, or 4 days a week and see how you go. You may get more job satisfaction by not having to go in every single day

    • Euphemistic on 31/08/2018 - 12:54

      one of the problems of working less is that it gives you opportunity to spend a lot more.

      • HighAndDry on 01/09/2018 - 04:38
        +1

        Alternatively it also gives OP the opportunity to do things which reduces his expenses. E.g.: a vegetable garden would reduce grocery bills, learning basic home maintenance would reduce tradie bills, having the time to get to places reduces transport bills (if he can cycle instead of driving/public transport), etc.

        Effectively OP can use the time saved to transition to a more almost 'subsistence farming' living model.

  • burningrage on 29/08/2018 - 12:48
    +1

    Well… this post seems to suggest how working can be a disincentive due to the progressive taxation system, doesn't it?

    I mean at certain point you would have to work double the effort but getting less than half the outcome of that extra effort at which point any sane people would say whats the point?

    I dont disagree with OP at all.

    Its already 20k btw after taking into account LITO.

    • mskeggs on 29/08/2018 - 13:14
      +3

      So do you do less than $20k p.a. of income producing work because paying tax, what's the point?
      Paying tax is irrelevant.
      My first full time job was paid $30k. I went from earning $2500p.a.as a shop assistant on a weekend to $30k. A $27500 pay rise!
      I have never got one that big again, but my tax bill was infinitely greater.
      And when I got a $10k pay rise some years later I was very please, even though some of it was taxed.
      In fact, I have never, ever, refused a pay rise because it would mean more tax.

      I think what you mean is that if you had the choice to do overtime, for example, and the after tax payment you receive is $20 an hour, you might decide it isn't worth it. But if the after tax payment was $200 an hour you might happily do the work, even if you paid $300 tax on a $500 an hour wage.

      If people are willing to work for $20/hr take home, and the gov cuts tax rates so you get $21, there will be people happy to work instead of you for $20hr still. Cutting taxes doesn't lead to higher pay for workers except at the actual moment of the tax cut. After a year or so, the tax cut is factored into total remuneration.

    • Baghern on 30/08/2018 - 13:23
      +3

      increase in pay doesnt work like that…

      You think those earning 180k+ are working 4 times as hard as someone on 45k?

      Except for those on a hourly rate, as you earn more the faster you pay naturally goes up.

      Thats why the Liberal argument about high income earners being disincentivied by higher taxes is bulls..t

      High income earners aren't going to ignore a 50k extra task because they will be taxed an additional 2k

      • lostn on 30/08/2018 - 18:11
        +1

        At the maximum bracket, you lose half to tax for every dollar earned. It then becomes a question of, how much is my time worth? Would I rather have more free time to myself, or work extra hours at half rate? If they earn enough already, they may have other priorities than money.

        I would love to be able to pay only 2k tax on an extra 50k income.

        • redfox1200 on 31/08/2018 - 12:03

          no you don't

          you only loose 45% on each dollar over 180k + $54,097 tax

          so if you earn exactly 180k you pay approx 30% tax overall

        • lostn on 31/08/2018 - 20:23
          +2

          @redfox1200:

          you only loose 45% on each dollar over 180k + $54,097 tax

          Does that include Medicare, MLS, and other rich people levies?

          so if you earn exactly 180k you pay approx 30% tax overall

          I don't think you get it. When you're already making 180k, every extra dollar you earn is only getting you 55 cents minus levies. We're not talking about the average tax you pay overall. If you round it out with the tax you paid on lower brackets, it will be a lower percentage than 45%, but we're talking about whether you want to continue doing more hours OT when you've reached the highest bracket already.

        • redfox1200 on 05/09/2018 - 12:09

          @lostn:

          i do get it i earn over 180k and 55% is still a s**t load of money

  • Piranha2004 on 29/08/2018 - 12:49
    +1

    This all assumes 100% of your rental income will go into your bank. What about insurance on your IP? Rates? Unplanned repairs? Once you take all that into account you only really get about 9-10 months worth of rent as disposable income. Too many risks and variables to consider in your situation.

    • lostn on 30/08/2018 - 00:52

      His 15k is clear. It's after all expenses are deducted.

      It would have to be an impressive piece of property to generate that much clear. He got a bargain.

  • Soluble on 29/08/2018 - 13:02
    +4

    When I was 18, I planned to retire at 25. when I was 25, I planned to retire at 30.
    Now I'm 34 and realise I sure as hell ain't gonna be able to retire by 40.

    But I've had enough money to be able to do what I want when I want pretty much the whole time. So if 350pw will allow you to do what you want when you want, then go for it!

  • boomramada on 29/08/2018 - 13:26

    I have happly, but I wouldn't/couldn't anymore.

  • geoffs87 on 29/08/2018 - 13:29
    +3

    Why?

    On your income, for every dollar you earn, you take away 67.5c of it.

    Last I checked, 67.5c is better than 0c.

  • Eevee on 29/08/2018 - 13:31
    +4

    Look up Financial Independence Retire Early (FIRE). It's basically the idea that you have enough in investments where you can afford to quit your job (your income from investments covers your expenses).

    If you are thinking of quitting your job now and plan on living off your investment, you are basically doing the same thing. However it is on a very low income (people usually do this when they earn more income from their investments).

    The FIRE community realise that their time is precious and they don't want to spend it all on working which sounds like what you are feeling too. When you know you can afford to quit (or work part time), you can now use more of your time the way you want to.

    • AncientWisdom on 29/08/2018 - 14:56
      +1

      This! Sounds like OP is in excellent position to aim for FIRE

      • bobbified on 29/08/2018 - 15:06

        This! Sounds like OP is in excellent position to aim for FIRE

        Not sure if sarcasm or not - but $18.5k/year doesn't exactly sound like an "excellent position".

        • AncientWisdom on 31/08/2018 - 03:34

          You misunderstand. He'll have to keep working but could set himself up to retire early.

  • Baghern on 29/08/2018 - 13:53
    +1

    The problem with low/med income isn't that you pay a lot of taxes, you don't, its that after expenses your disposable income is so low that your taxes looks significant.

    Liberals are lying through their teeth when they say high income earners arent working harder due to tax. High income earners aren't earning per hour, they get bump ups in 20, 50k… etc lumps when they work harder. They're not going to work less hard for a few k less.

    BUT the significant factor for high income earners is that almost all of any extra income is disposable income

  • AddNinja on 29/08/2018 - 14:51

    Are you single? Because if you choose not to work, you’ll likely stay that way. But on the positive side, you can take risks - even try an internship doing work you’ll enjoy. It could lead to something great and you’ll be ok if doesn’t. Or… do you like people? Volunteer for a job where you get to work with them.

  • AncientWisdom on 29/08/2018 - 14:58
    +1

    To answer OPs question I probably could but my kids couldn't…

    Also very relevant to this discussion is the understanding of compound interest which in your case works in your favour so there's a big incentive for you to keep saving as much as possible as early as possible.

  • Illian on 29/08/2018 - 15:03
    +4

    If you don't have rent/mortgage? Easy. As. Piss. I actually have a similar plan, what a lot of people don't understand is that it isn't about money, for a person who's achievements or interests are not work/career-based it's about having time.

    • Soluble on 29/08/2018 - 15:10
      +2

      What's that time worth if you can't afford to do anything with it?

      • spacemannn on 29/08/2018 - 19:40
        +1

        I guess some would rather be reading books and just enjoying the sunny afternoons. Won't be able to go out with your friends as they'd all be busy working. I personally could never do 18.5k a year. I like my material possessions and doing things with people I like, all of which require money. Each to their own I guess, long as they're feeling fulfilled/content with what they have.

        • RocketSwitch on 30/08/2018 - 15:20
          +1

          Everything is a lie.

      • Illian on 30/08/2018 - 15:34
        +3

        That's how I know that you're one of the people who don't understand. You would only use your time to consume, people like me would use it to create.

        • Soluble on 30/08/2018 - 16:40

          I'm hoping to create wealth for my daughter so she doesn't have to whinge about housing affordability ;)

        • AncientWisdom on 31/08/2018 - 03:36

          @Soluble: then you've lost before you even began 😜

  • gromit on 29/08/2018 - 15:34
    +1

    I don't get how you can feel like you are working to pay the tax man? you are on a very low tax rate at that income level so you are paying bugger all in taxes. If you think you can live on 18-20k a year the simple thing to do is save the rest of your income for 6 months or a year, if you can't manage to do that comfortably then you can't afford to quit your job.

  • pennypincher98 on 29/08/2018 - 15:46

    You say you live in Sydney.
    That wouldn't even cover mortgage repayments or rent let alone anything else.

    Might be stereotyping but at $65k a year I'm assuming you probably don't own your house outright?

  • cyrax83 on 29/08/2018 - 15:56
    +6

    Enjoy a lifetime of being a single tight ass.

    Can't believe you think you pay too much tax on 50k. Ridiculous

    • Pacify on 29/08/2018 - 19:14

      The idea is fine, but complaining you pay too much tax at 50k is pretty hilarious

      • RocketSwitch on 30/08/2018 - 15:20

        You're easily amused lol

  • haemolysis on 29/08/2018 - 16:22

    Not enjoying a 9to5 is one thing, but living without luxuries is just as awful. Keep in mind, if you aren't at work, your recreational expenses may rise. Your financial security will also be poor. Relying on a rental that may become vacant. You also will lack a safety net if you have any major expense (medical, damage to home, etc.)

  • luffyex2010 on 29/08/2018 - 16:23
    -8

    I see you are a Gen Y Millennials

    I got a rough idea about your thoughts processes and there is probably no cure for it.

    PS: There is nothing wrong with our current society, the problem starts with *points @ OP" you when you get too smart with ideas.

  • idonotknowwhy on 29/08/2018 - 16:28
    +2

    You could also bring it up to $37,000 by working 1-2 days / week, freelance work, etc. You'd only be paying a little bit of tax, and could claim some of it back on your tax return.

    I have an investment property which is 100% positive and earns about $15k per year clear.

    That's great, you're contributing to society by providing a dwelling for a poorer, renting couple/family/single person. The government acknowledges that this is useful by providing incentives for property investors, so we appreciate your contribution ;)

    As for your question, you'll have to come up with your own budget. Do you rent or own your dwelling?

    P.S. Good luck. As a tax payer, I genuinely hope this works out for you.

  • imurgod on 29/08/2018 - 17:46
    +5

    I couldn't do it as I have kids to support, mortgages to pay and I like luxury items (I know, the opposite of an ozbargainer) and all of this in sunny Sydney.
    But then I own my business, I love what I do and I don't have to work very hard to earn a substantial income.

    Of course earning the income I do, results in having to pay top bracket tax but there's a lot of ways to minimise what I pay so in the end, it all works out for me.

    Having done the hard yards in jobs I hated for bosses whom I downright loathed for many years before getting here, I can appreciate your point of view.

    However, I'll say this; I have a few friends who sold out for excellent money and retired young.

    In the beginning it seemed like they were living the dream, but all of them ended up with one issue or another; depression, broken relationships, suicide…

    I think that it's important for your mental well-being to keep occupied and productive and money doesn't seem to have anything to do with it.

    I'm assuming that you're young and at 30-ish, I chased a big salary in the thought that it would make everything great, but money doesn't, in itself, make you happy.

    It brings with it, a lot of problems.

    That's my 2c. A little off topic I guess but take what you want from it.

  • luffyex2010 on 29/08/2018 - 18:06
    -2

    Here is something that you might want to or not to watch.

    Simon Sinek- on Millennials

  • matt1234 on 29/08/2018 - 18:20
    -1

    If you have investment property, but think you are paying too much tax then you are doing it wrong. Negative gearing is your friend.

  • mitt on 29/08/2018 - 18:22

    I have. It required living in a share-house (was paying rent & studying at the time) other than that I lived comfortably enough. Going out to the pub was often replaced with having friends over for a BBQ. Items like tech purchases had to be justified as a tool, not just a toy. Any extra cash was saved up to pay off annual or unexpected expenses. When living that slim a car breakdown goes from an annoyance to something you had damn well better have saved up for. Credit becomes off limits even for emergency expenses because the interest will put you under.

    One year my total expenses came to 11K all up. That was me really scrimping (without going to absurd lengths) to see what I could achieve. Its not a lifestyle I would suggest long term.

    • whooah1979 on 29/08/2018 - 18:44
      +2

      Op is thinking of going from $50k gross + $15k net to ~$15k net + odd cash jobs. That is a major disruption to anyone’s cash flow.

  • wonderboy on 29/08/2018 - 18:42
    +1

    I am now in a similar position as you. Recently quit my boring office job after three years because it was just too far away (3 hours travelling) and couldn't afford to move closer. Co-own investment property with family. Have more than enough saved up to take a real gap year but will see how things go in a few months. Can't live off the rent forever since it's not enough.

    I spent a year not really doing anything after graduating Uni besides a casual job that brought $250/week. You will just get bored staying at home all the time because you won't have enough money to do anything. It just became soul crushing.

  • drfuzzy on 29/08/2018 - 19:12
    +3

    Google Mr Money Moustache.

  • ozzpete on 29/08/2018 - 19:19

    With nobody to support, and if always looking out for bargains, it is quite doable.
    Would you be living a life of luxury, NO .. Would you have enough to comfortably get by with everything you need and most of what you want, PROBABLY .
    I live off less than that atm .

  • centrelink on 29/08/2018 - 19:22

    Yes you can. I had to live in a studio apartment when my parents booted me out of the house and had no where to go. Was able to live off a basic life with minimal needs while on youth allowance and a part time job which totals about $350 a week (rent is about $175 a week). I would say if you find a share apartment you could go under $100 but you will probably share with students that come and go

  • Name on 29/08/2018 - 19:58

    I imagine most people could live on that. But why would you want to? It'd be a very frugal life with no luxuries. No long weekend ski trips, no Fiji getaways, no trips to Disneyland or fancy restaurants. My kid got sick about 2 years ago and the doctor said it would be expensive to see a specialist (~$1,100). Thankfully my wife and I earn a lot and aren't debt laden so to us that amount isnt a lot of money.

    Better to find a job that you love doing and afford a better lifestyle than live in poverty but "free" and counting every penny.

  • corybaxterr on 29/08/2018 - 20:03
    +1

    For the last few years while studying I've lived pretty comfortably while renting off Youth Allowance which is $258 per week. Living and enjoying life off $350 seems easily doable to me.

  • DonWilson on 29/08/2018 - 20:17
    +1

    You could live comfortably in Bali for that

    Budget:

    12 months accomm with breakfast, AC & pool here = $5,176.51
    Visa & Extensions as outlined here = ~$1,600
    Food at $10/day is doable with zero cooking but the accomm does have a kitchen = $3,500
    Phone/Data = $200 (overkill)
    Transport budget (use gojek or uber) = $500

    Total < $11,000

    I'd say all of those numbers are high estimates. You could definitely spend less on accomm, food and transport. Possibly less on the visa stuff if you don't use an agent or do the fast turnaround stuff but that doesn't sound like it'd be worth the saving.

    Of course you could also definitely spend more on any aspect you wanted to too and get a proper house instead of a small room in a small hotel (albeit a pretty good location).

    • DonWilson on 29/08/2018 - 22:00
      +1

      Forgot health insurance. You can get World Nomads insurance for ~$700pa.

    • lostn on 30/08/2018 - 00:10

      You can live on that income in Bali. Problem is, you can't continue to earn that income when you're in Bali. You will eventually run out of cash and have to come back.

      You could retire there if you saved well, but that would mean living and working here while saving, and I don't see how you can do that.

      • DonWilson on 30/08/2018 - 00:48
        +2

        They're getting $15kpa net from their investment property…

        • lostn on 30/08/2018 - 00:56

          Yes, and they're going to need some of that money to pay for food and bills.

          That 15k is not tax free on top of what he earns from his job. He wants to live on 18.5k, which means he will have a job that earns him 3.5k a year, plus his 15k from investment property.

          He could live on that, but won't have any savings, and will never be able to go to Bali to live on it.

          Bali is not going to pay that kind of income.

        • DonWilson on 30/08/2018 - 00:59

          @lostn: yeah, I'm not suggesting he gets/has a job. The budget I set out was under $12k including "food and bills".

        • Windows7forever on 30/08/2018 - 06:41

          @lostn: I don't want to live overseas, only for holidays. Lots of Aussies permanently live in third world countries and the cheap cost of living does make it a tempting proposition, but it's not for me.

  • Lunarboogie on 29/08/2018 - 21:03
    +1

    Dude - do it. Most of the world lives on less than one dollar a day. Abandon all your wordly possessions and survive on the generosity of strangers. I'd do it but Canberra is way too cold in the winter and full of @#$%s.

    • Windows7forever on 30/08/2018 - 06:43
      +1

      Or you might get arrested by the AFP if you start begging and hassling strangers around parliament house. Now that's a good use of my tax money.

  • happirt on 29/08/2018 - 21:35

    you'd want some emergency budget incase things hit the fan,,, hospital bills you get sick/injured, car breakdown,..etc

  • Dapper on 29/08/2018 - 21:36
    -2

    It is your social responsibility in society to pay tax regardless of whether or not you think the government does a good job of spending it or not. Just earn more so you don't feel like paying tax is a tremendous burden on yourself… it ain't rocket science.

    • Windows7forever on 30/08/2018 - 06:44

      So i'm supposed to feel guilt and responsibility?

      • burns13 on 30/08/2018 - 18:10

        What you feel is upto you…. The point is that you will hear this over and over. You are making yourself into a social scourge which makes you a fairly undesirable character.

      • Dapper on 01/09/2018 - 11:24

        Well you are an able bodied person who is clearly capable of contributing to society. So yes, you should feel responsibility to be able to provide for others (through your taxable income) and yourself (also through your taxable income).

  • bmerigan on 29/08/2018 - 21:48

    It seems unlikely that you can drop to 1/3 of your current income and be happy.

  • Hunter80 on 29/08/2018 - 22:08
    +1

    Lot of animosity..
    OP, do whatever please you.. If you want to take time off, do it.
    I am just amazed by how people think about oz tax system, and how it is used.
    Australia truly is a lucky country otherwise….

  • Trying2SaveABuck on 29/08/2018 - 22:34
    +5

    Im assuming you are under 30, male and single

    My advice would be jump on a working visa one way flight to Europe $350 Australian goes a fair way in eastern parts of Europe(you might need a few extra $$ in savings to kick your self off and encase of emergency). Go to Hungry, Croatia, Montenegro Czech Republic, Russia Basically anywhere the average looking women is an >8/10 and beer/food is cheap have as much sex, booze, drugs (if you are into that) and party come back in 12-24 months and re-evaluate life after that. Whatever you do after that wont ever be as good but at least you had a sick ride and you wont regret anything in your later years

    • Windows7forever on 30/08/2018 - 06:46
      +3

      Sounds like you had a "trip of a lifetime" ;)
      I also get enjoyment visiting museums and art galleries :P

  • lostn on 29/08/2018 - 23:50

    It would be hard but doable. You'd need to cut back on a lot of luxuries and non-essential things.

    If you're a single, it can be done. If you have children, probably not.

    It won't be a comfortable lifestyle in either case.

    If you can keep your income down to a low level you can effectively pay zero tax up to $18500 in one financial year.

    Raising the tax free threshold to 18k was a Gillard policy. It helps low income earners, but it is being subsidized by those earning higher income than 18k, even those not earning much higher. Where there are winners there are always losers. If you earn more than 18k (which is most people who aren't students or on welfare), you are worse off as a result.

    (I believe the government is rumored to increase this to 20k within the next few years which is good news for low income earners).

    What the government gives with one hand, they always take back with the other. It will probably come with a tax hike for anyone earning $20,001 or more. Unless you're happy earning below the tax free threshold for the rest of your life, you will join the losers club with the rest of us. Be careful what you wish for.

    Maybe I will quit my job and travel or find a part time/casual job and enjoy more leisure time and less working hours. I won't be able to save much money but the extra leisure/free time to pursue other things in life might be more worthwhile than a repetitive, meaningless 9 to 5 job.

    I don't know how you're going to travel if you earn around the tax free threshold. You might enjoy this lower stress life from working fewer hours.. for now. But how long will that last? I get a feeling you don't have kids yet. How long can you keep this up?

    Those repetitive meaningless 9-5 jobs are what pays the bills and raises your kids. They bring stability to your life. There are ways you can earn money without working for someone, for example streaming on Twitch or youtube, or writing apps for ios/Android. But there's a lot of competition you have to face.

    Some day robots may replace most of our jobs. The conversation's been going on about a universal basic income, which you might be happy with. It gives people an excuse not to work. But everywhere that it's been trialed or proposed, the actual income is below poverty level and not enough to survive on without being an ultra tight arse.

  • burns13 on 30/08/2018 - 00:26
    +1

    I'm not understanding why you would subject yourself to such a mediocre lifestyle? That is pretty much the poverty line. Is there a real goal in mind? How will this progress your situation? Or are only doing it just to avoid income tax? If you want to loaf about all day without a real income you are going to be running thin. I couldn't imagine how you could live off 350 a week unless you are getting a lot of things for free. ie- rent, utilities.

    Work harder and find a higher paying job.

    • lostn on 30/08/2018 - 00:59
      +1

      Goal is work less, have more free time to do things you enjoy. e.g. reading, watching TV. Your hobbies would obviously need to be cheap hobbies.

      • burns13 on 30/08/2018 - 01:40

        What does he want to achieve by working less? that's what i'm getting at. He doesn't even know if he wants to travel or anything. Is there something in mind he wants to pursue/accomplish with all that free time? Is there a personal reason why he can't bare working like a normal person? Just seems like a waste of time giving up work unless you're a hippy smoking whacky tobaccy all day.

        • lostn on 30/08/2018 - 18:14

          Some people go by the mantra of money doesn't buy happiness. Less hours means less money to spend, but you get to consume the goods and services that you do spend your money on. At the other extreme, more work is more money, but less time to enjoy life.

          A bit of moderation is the right balance for me. I wouldn't want to work a job I don't enjoy, or more than 40 hours a week, but I also don't want to earn only enough to not pay any tax.

        • burns13 on 30/08/2018 - 18:29

          @lostn:

          The majority of us have a work/rest/leisure balance we are willing to live with. We eventually make changes if its not.

          This guy is talking no work and no money. For no legitimate reason then it makes no sense to do that.

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