Saturday, July 25, 2015

Snork Maiden's Taxes 2014-15 Edition

I've done the calculations for Snork Maiden's tax return for this tax year. The tax year runs from 1st July to 30th June in Australia. The figures ignore employer and employee contributions to superannuation (retirement account) which amount to a lot of extra income. Everything is in Australian Dollars of course.

Looks like she needs to pay extra tax :( Compared to last year the Medicare Levy has increased by 0.5%, which means an extra $450 of tax before anything else So, despite income being up only by 3% taxes are up by 5%. Salary is unchanged because the current Enterprise Agreement has expired and the union hasn't agreed a new deal with the employer. Investment income is up as are tax credits derived from investment income (by more than 50% in the latter case). Deductions are steeply down because there was no unreimbursed work related travel this year. Gifts and donations are up 1100%. Snork Maiden started donating $40 per month to Save the Children a month before the end of the last tax year.

The average tax rate on taxable income is 24.94%. Gross income before deductions and tax credits is not a lot higher than taxable income and so the tax rate on "gross cash income" is only slightly lower. The difference will be much bigger on my own income.

Here are the reports on Snork Maiden's taxes for all previous years:


Tuesday, July 21, 2015

Mid-Year Update

We are tracking close to the more optimistic projection I made at the beginning of the year. The adjusted optimistic forecast from here is $A1.639 million by the end of the year. So far the Australian stock market hasn't performed that well but the Australian Dollar fell more than forecast and so those two factors balance out. $US1.148 million is the adjusted optimistic forecast in US Dollars. Only down $US50k from the forecast at the beginning of the year.

At the weekend some friends helped us put up some pictures on the walls in the house. We have 8 pictures of African animals that Snork Maiden took * all lined up above the staircase well now. Getting them lined up straight was the issue that needed help. I'm going to call this part of the house "The African Gallery" now :)

* Seems like I never mentioned the African safari on this blog. Was in 2013.

Sunday, July 05, 2015

June 2015 Monthly Accounts

These are the preliminary accounts for June. The main thing that might change are tax credits, which are estimated at the moment. Markets were down, especially in Australia, and as a result investment income was a negative $63k (Australian Dollars) and as a result net worth declined $58k. Salaries came to $13.8k which is what they are in a two payday month with no reimbursements. Retirement contributions were also the normal $3.2k. We spent $11.3k not including mortgage payments and $7.7k not including business expenses. But due to the business expenses and mortgage payments there was negative saving on the current account, offset by positive saving on the retirement and housing accounts. Tax credits, mainly associated with the end of financial year managed fund distributions are estimated as $2,800. These reduce tax payable on a 1:1 basis. We paid $1945 in mortgage interest, saving $350 in interest due to cash in our offset account. Transfer to housing adds that nominal saving, which we count as an investment return, to the actual mortgage payment to balance the accounts.

Thursday, July 02, 2015

Update (from England)

It is always a slow process to get the accounts together at the end of June as it is the end of the financial year in Australia and data on tax credits etc. won't be available till mid-July. I estimate that we lost more than $A40k in net worth for the month and got -4.0% rate of return in AUD terms. The ASX 200 index was down 5.3% though. OTOH the MSCI lost 2.31% and the S&P 500 1.94%. Our estimated loss in US Dollar terms was 3.5%. So, again, we beat the Australian index but lagged the international stock market indices.

It looks like we again had high spending - $A7.6k not including large business expenses. And that doesn't include our mortgage repayments. We did buy a washing machine and dryer. That cost $A3030 in total. So the rest of our spending came to $4.6k. $943 was property tax ($313 per quarter) and body corporate fee ($630 per quarter). Health insurance is $308 (per month) etc.

I'm in England on business. Working on putting together an international consortium to bid for research funding. Round trip of 6 days away. I was in the Middle East for 2 weeks in late May early June - going to conferences and visiting family. My doctor was surprised when I said I was visiting family in the Middle East :) This second trip only came up while I was in Turkey (one of the three countries I was in). Yesterday was the hottest day of the year here in England. In London it hit almost 37C. A bit cooler where I was. Though we were meeting in a room which had air conditioning installed, the air conditioning was broken. So, it was hot work. We had lunch yesterday in the hall in this picture. Our meeting on Tuesday was in the building on the right...