The tax cuts in the Budget could mean my family will be better off to the tune of about $55 per week.
What does that REALLY mean for my family?
With the increase in GST expected, DPF helpfully says the Tax Working Group estimated that GST, on average, is 5% of income for top decile earners, so our household's GST increase will be about $1,100 per annum, or about $21 per week. That's reduced my family's tax cut to about $34.00 per week.
If we then add the extra 5% added to electricity prices because of the ETS, that will reduce it to about $31.
Then if we add the extra 5% added to petrol because of the ETS, that will reduce it to about $26.
Then if we add the 8% that my council is adding to my rates bill from 1 July, it is reduced to about $23.50.
Then if we add a further 5% (approximately) that will be added to general economy costs as a result of the ETS in general, it is reduced to about $22.00.
Then if we add the lift in mortgage rates as a result of the inflation-led ETS (a fact confirmed by Dr Bollard), in a few months I will be paying an extra .25% on a relatively hefty mortgage, it is then reduced even further.
The result is that I expect my family to be worse off to the tune of about <$3.50> per week from tomorrow's Budget.
In all likelihood this will be a Red budget for most families, in more ways than just Bill's Bottom Line. Make no mistake, we will be poorer for it.
I just thank my lucky stars I don't have any investment properties any more, which if I did, would make this rich prick even poorer.
May 30 in history
1 hour ago