Monday, May 16, 2011

Crying poor on a family income of $150,000

The latest Australian budget has been rather hardcore in terms of slashing benefits to middle income threshold families. $150,000 as a family income threshold isn't rich and it isn't poor either in Sydney. It's middle income and middle of the road.

When the budget information was unleashed, suddenly the comments section on mainstream news sites were inundated with unhappy people writing in about how they can't survive on a family income of $150,000 and that they NEED the Government subsidies that were slashed(Baby Bonus, Family Tax Benefits and Paid Parental Leave). It was a very harsh budget for middle income families.

Can you survive on $150,000 per annum?

My question to families that will be affected: If there are families out there that can survive on less, then why can't your family survive on less too?

There are families living in metro and greater Sydney that are earning minimum income(around $30,000pa) or a family income significantly less than $150,000 per annum and if they can survive on $80,000 for example, then why can't the family on $150,000?

At the end of the day, the Government isn't there to subsidise anybody's lifestyle. If a family decides to live near the beach, harbourside or at inner city suburbs or to enrol their children at Private Schools with school fees of $20,000 per child each year, is that a really good reason as to why the Government should subsidise those choices? Should the Government be subsidising families that are going on annual vacations overseas or on skiing holidays?

If you think that the middle to upper class is getting the raw end of the stick, the latest budget is also bringing the stick out to lower income earners, the unemployed who will have to try harder to qualify for their unemployment money, the single parents and the disabled. Or the kids who are earning 'unearned' income.

As long as they don't dabble with Capital Gains Tax(CGT) concessions and Negative Gearing, then I don't care how many subsidies they cut.

A lot of the business owners and wealthier families who have plenty of investment assets have been keeping rather quiet on this budget. They have plenty of investment assets and as long as the budget or tax changes don't meddle with CGT or Negative Gearing, they probably won't care too much about the cut subsidies either. Sure, there's going to be a sense of regret because who doesn't want to get 'free money'(which technically isn't free because you paid taxes) from the Government?


  1. It is hard to manage funds when life style increases every year.

  2. Lifestyle inflation...happens to the best of us.