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pv4
13-11-2012, 08:48 AM
sup gaiz. want to ask advice on general life (again).

looking into getting a credit card. want to use it as security incase i run across an unexpected bill that i don't have cash-on-hand for, want to use it to increase my credit history, and want to use it to get heaps of frequent flyer points.

need to just get some clarification, that the internet isn't really spelling out for me.

looking into this kind of card: http://www.americanexpress.com/australia/campaigns/discoverypalms/index.shtml?&PID=35&BUID=CCG&AFFID=Qantas&CRTV=Earn&PSKU=AQDB&sourcecode=25A996J001&CPID=100036881

amex qantas discovery card. no annual card fee, frequent flyer points for every dollar spent, etc. up to 44days interest free.

so just say i use this for every purchase i make from hereonin. if i keep on top of what i spent, when, and paid the card off in full by the due date, will the credit card cost me absolutely nothing? if i stay on top of it organisation-wise, will it be just like paying for it with my bank account but i get the added advantages of gaining a good credit history, getting points, etc?

when/where does the idea of getting a credit card turn bad? is it just if i don't pay by the right time, and interest/debt fxxxs me over?

cheers to everyone of all sized ears

boz-monaut
13-11-2012, 09:03 AM
so just say i use this for every purchase i make from hereonin. if i keep on top of what i spent, when, and paid the card off in full by the due date, will the credit card cost me absolutely nothing?correct - pay it off by the end of each month and you won't pay interest (you may pay a surcharge on purchases though, particularly on AMEX)


if i stay on top of it organisation-wise, will it be just like paying for it with my bank account but i get the added advantages of gaining a good credit history, getting points, etc?yes, this is the way it works out - I use my AMEX/VISA account as you would with a regular bank account with eftpos and pay it off prior to the end of each month - I now have enough points for a return flight to Europe


when/where does the idea of getting a credit card turn bad? is it just if i don't pay by the right time, and interest/debt fxxxs me over?any debt is bad when you can't pay it - if you can pay your card off each month then you're sweet - if you can't even pay off the minimum payment, then you're ****ed

set a very low credit limit (less than 1/3 your month's salary) and you'll be fine

plague
13-11-2012, 09:21 AM
Quick answer, yes and no.
I have a Qantas Amex for work stuff. Card is free and interest free period means you won't pay extras if you clear it within the 55 days. Problem is most merchants (petrol stations/retailers/airlines) will charge you extra to use Amex (generally 1.5-3%).
Don't ever get a credit card to rack up frequent flyer points it isn't really worth it (on phone so can't type out all the reasons but if you want to know more let me know).

Your best bet for getting a credit card is to go for a low interest, fee free visa or mastercard from any of the major banks (pretty much all of them will have one). They won't have an awards program but as I said its not worth it.
Hope that helps.
If you want any other info let me know. I use credit cards a lot so have spent way too much time sussing them out.

russjaybee
13-11-2012, 09:23 AM
I'm also looking at doing this, looking at the commonwealth bank Awards option that comes with amex + mastercard cc's.

This is a good option IF YOU CAN HANDLE YOUR CASH.
If you only ever buy what you can afford then you wont get in trouble

snake
13-11-2012, 09:28 AM
so just say i use this for every purchase i make from hereonin. if i keep on top of what i spent, when, and paid the card off in full by the due date, will the credit card cost me absolutely nothing? if i stay on top of it organisation-wise, will it be just like paying for it with my bank account but i get the added advantages of gaining a good credit history, getting points, etc?


some places charge a credit card surcharge on top of normal costs. taxi's do this, as do some restaurants and retailers. obviously on these occasions, you lose out cos you might end up paying a few dollars more than if you just payed cash.

some retailers, particularly electrical (best example, glenn geary) and homeware will give a slight discount if paying cash (eftpos is cash), so you'll be behind if you do this too.

i wouldn't use getting points as a motivator for getting a credit card - they literally amount to bugger all. i regularly had 1000+ points at the end of each month with an old card, ant this was worth about $4-5. the points will only be useful if you are a big spender, and were going to spend big, anyway. otherwise, imo, they are just a ploy to suck people in. most people aren't as disciplined as you intend to be (i've tried to be, but always found times were i would slip up), hence they make they're money anyway.



yes, this is the way it works out - I use my AMEX/VISA account as you would with a regular bank account with eftpos and pay it off prior to the end of each month - I now have enough points for a return flight to Europe


how long did it take you to save up these points? out of interest, how much did you end up spending to accrue them?

plague
13-11-2012, 09:29 AM
Edit: yeah, wot Boz sed.

pv4
13-11-2012, 09:38 AM
the frequent flyers points isn't the main motivator behind me getting one, i just figure if i'm forking out coin like i would any other day, getting a reward for it is better than getting sfa. but the surchages, i'll definately look out for. makes complete sense.

thanks for the info guys. i only plan on using it for things that i could afford anyway, so don't plan on being caught out. the only time this wouldn't be the case is if something ridiculous got thrown my way & i didn't have the coin to pay for it, which is the main reason i want to look into one.

russjaybee
13-11-2012, 09:41 AM
I have no idea how but my parents have swindled multiple trips to NZ from Frequent Flyer points, will investigate.

boz-monaut
13-11-2012, 10:24 AM
how long did it take you to save up these points?three years or so
out of interest, how much did you end up spending to accrue them?lots and lots, three years of groceries, bills, shopping - but not more than I would have by using a regular credit card or eftpos - i.e. any time there is a surcharge I pay some other way

Jetmaster
13-11-2012, 04:54 PM
Agree with all. As an older sweat, I've had my Gold Mastercard for many years - you get into a routine of paying everything with it and paying the full balance each month. Costs me nothing, apart from the odd "service fee" merchants pass on. It's been linked to Flybuys for a long time too, because it is NAB you get points for all transactions. I manage a gift or a night away each year at least. I also have free travel insurance and extended warranty cover on all purchases.

I rarely have more than $20 in my wallet these days !

q-money
13-11-2012, 05:28 PM
never get a credit card if you live in a sharehouse with shitcunce that can't pay bills on time, as you end up being the poor schleb picking up everyone else's bills

also never live in a sharehouse with stoners

Skirt Boy
13-11-2012, 07:44 PM
never get a credit card if you live in a sharehouse with shitcunce that can't pay bills on time, as you end up being the poor schleb picking up everyone else's bills

also never live in a sharehouse with stoners

Never live in a share house with chicks period.

Never live in a share house ****ing period.

Back on topic.

If you manage to live now without a credit card why not just get a VISA Debit card?

belchardo
13-11-2012, 07:53 PM
other way of looking at credit history (at least in my opinion) is that clearly having a solid savings base when you go for a deposit for whatever means you are probably a good proposition

hawk
18-04-2013, 09:51 AM
get ready to get on the gold river. maybe wait till it getz below 1k/oz

toad
18-04-2013, 11:50 AM
OK so I have been wondering for a while if these credit card points are legit or not really worthwhile. I currently have a credit card with no points system but a low annual fee because I am quite sceptical of such schemes and thought that the lower fees would more than balance out any points I might "earn", but I'm thinking that I might be wrong. The difference in annual fees is about $60.

Let's have a look at the numbers using Qantas flights as an example. A return trip to Heathrow costs 128,000 points and typically costs about $2000. So each point is worth about $0.015. With AmEx, you get 1 point for every $1 you spend, but only for every $2 you spend with Visa. If we assume you use AmEx, you'll need to spend $60/$0.015 = $4000 per year on the card to "break even" (see assumptions below) at a spend: point ratio of 1:1. If you are paying for most of your bills, groceries etc. with this system then obviously you would easily be spending that sort of money over a year (likely a few or many times over). As an example, let's say you spend an average of $400/week on your card, then you'd spend $20000/year and have $300 worth of points. See you at the Emirates in 6 years bro.

So, on the surface of it, such a scheme may in fact be worthwhile. Additionally, there are often promotions with various places so if you are sensible you might even get points at a ratio of better than 1:1. Maybe boz can provide some insight as to his average point:spend ratio over a few years?

However, there are a lot of assumptions I have made which probably falsely inflate the utility of the points. I've assumed that:
- you are using the points on something that you might spend money on anyway
- you are not getting charged AmEx surcharges (realistically, if you do what boz does and don't use it where you'd be getting charged a surcharge, this would have an impact of the total number of points you'd earn).
- I've ignored that using points can be a PITA sometimes (my understanding is that flights are allocated a certain amount of "points seats" and so even if a flight is not full it might be full for people wanting to use points).
- you will inevitably not use 100% of all points you earn and this needs to be accounted for.
- you don't fall into the trap of buying stuff you don't need just because they are doing a "2 for 1" points promotion or something, which would almost certainly not be worthwhile under any circumstances unless it was something you were going to buy anyway.
- you never forget to pay your credit card balance and accrue interest.

There is also some non-zero probability that you will decide that you are not earning points quickly enough and end up changing to a low-fee card at some stage in the future and that will mean you've wasted $60 every year that you were on the rewards scheme.



-------------

Summary: probably go for the card with the points if you feel like you'll be spending enough to make it worthwhile, and have the discipline to use it "wisely"*. I'll probably change my card based on all of that so someone tell me if i've made any miscalculations.

* everyone thinks they are but not everyone is

belchardo
18-04-2013, 01:00 PM
http://www.choice.com.au/reviews-and-tests/money/borrowing/credit-cards/travel-rewards-credit-cards.aspx

advice from Choice.

pv4
18-04-2013, 03:50 PM
I'm thinking the same as you, toad. just waiting for the documents to come through of the mrs changing her name (alpha male over here, sup) and then we're going to get a points-related card. as I said in the OP, I want a credit card as security (i don't have one atm). the points thing, I just feel like if I'm buying things I would have anyway, why not get rewarded for it.

I think we're going with woolworths everyday rewards frequent flyer MasterCard. we shop at woolies each week & fill our cars up with fuel at Woolies caltexs. $89 annual. it's 1point:$1, but 2points:$1 after spending $30. living life as normal, in a certain amount of years getting free flights make it sound pretty good to me.

belchardo
18-04-2013, 04:40 PM
giving all your personal data to woolworths....

pv4
19-04-2013, 07:30 AM
giving all your personal data to woolworths....

chances are between financial institutes, club memberships, etc etc - woolies or coles already have all our personal data

plague
19-04-2013, 07:52 AM
giving all your personal data to woolworths....

I think this post belongs over in the conspiracies thread.

Jetmaster
19-04-2013, 11:19 AM
Never base your choice of card on its rewards system....go by whether there is an annual fee, ongoing fees, late payment fees, overdraft fees, ATM fees et al as well as the interest free days available.

I had an NAB card - no fees whatsoever and I pay in full each month. Every dollar spent using the card gets a Flybuys point, however despite that I can never see how people had enough for flights (as a matter of fact - "Flybuys" don't offer flights anymore !!)

It's nice to pick up a bonus each year (a new phone, a drill, tix to Seaworld, a hotel room for a night), but that is all they are a bonus.

I just gave that card the flick and took up a new one elsewhere - no rewards system but a better value card.

The banks play games with you and push your buttons - I always refer to the story of John Dwyer, the guy that came up with the Greater "Free Holiday" campaign. At the time banks were offering 1% honeymoon rates for 12 months on loans and everyone was doing the same thing. He said that more people went to Maccas rather than other fast food chains because of the "Happy Meal" - price didn't matter as much as the toy.

John Dwyer told the Greater execs that by giving customers their free holiday they would have their "Happy Meal" - the lemmings flocked not realising that they could have paid for 2-3 holidays by saving their 1% at another bank for a year !

And that is the trick with rewards schemes - it takes your eye off the true cost of the card.

toad
19-04-2013, 12:11 PM
how can something be "better value" than "no fees whatsoever"?

plague
19-04-2013, 01:14 PM
Another thing regarding the "free flights" is that they arent in fact "free" (international anyway).
You still have to pay the taxes (or use equivalent points to cover the cost).
My last trip to London was on points (about 130,000 return) but still cost about $600 (return) in taxes (going through Singapore and into Heathrow are about the 2 most expensive airports in the world apparently). Other airports have been cheaper (Narita/LAX) but they still cost. I'm lucky in that my business racks up a couple hundred thousand points per year so flights are a bonus (i considered then "super cheap" rather than "free").
For your everyday Joe credit card I would never sign up for a points scheme.The card fee, higher interest and taxes on flights mean you wont be any better off at all.
Banks dont give anything away, ever. remember that when dealing with them.

pv4
11-02-2014, 08:15 AM
So I thought I'd do a time-has-passed update on all of this (particularly because Toad asked me to back in the day).

We ended up choosing to go with the Woolworths Money CC, the one that gets 1 point for every dollar spent & has an $89 yearly fee (I honestly couldn't tell you the interest/charges, because we pay everything on or before time and haven't been charged any of that).

We have used it for everything that doesn't have a surchage for Credit Card. Our bills, shopping, etc. The only time I can honestly say I've actually gone out of my way to use the card instead of otherwise is some bills I go to the Post Office to pay with the card as opposed to using Bpay (because Bpay is either unavailable on this card or i haven't bothered to find it). It's been really easy to keep up with our spendings, and we haven't missed a payment or been charged even the single dollar of interest because we've been on top of it every month. The only charge we have experienced that we wouldn't have otherwise (if we didn't have the card) is the $89 annual fee.

Over the last year we've as I've said just been paying most things without surchages with the card. Plus between QANTAS & Woolies, we've taken advantage of so many offers for bonus points for things we would have done anyway (like 500 bonus points for buying $30 of pet stuff at woolies, and stuff like that). We also got an offer yesterday for 2000 bonus points to spend $30 or more with Woolies Online (with free delivery for first order). Plus we're conveniantely with Optus for our mobiles, who give us points for fun. Just stuff like that, which doesn't (or hasn't yet) see us buying things we wouldn't have anyway, or at a stupidly higher price.

Since we've gotten the card a year ago, we have racked up 102,000 points.

I did some quick calcs. It costs 128,000 points for a return flight Syd-Paris. You then have to add on $703 for taxes, fees & carrier charges (according to the frequent flyer site). A quick webjet google tells me a return flight is $2100 for Syd-Paris. That's a $1397 difference. If I tallied up the years of $89 annual charges, it'd take 15 years to reach that dollar difference between the points-based-flights & the points-less-flights.

There's no humanly way possible we'll rack up 100k points again in a year - there were a few offers like our mobile plans (which we were getting anyway) which are locked in for a couple of years that gave us a big amount of points for re-signing up, and random things like that. I wouldn't be surprised to see us rack up "as little" as 50k points per year from hereonin. So by my quick calcs, it'll take us this year + two more to get enough points to have 2 return Syd-Paris flights (we don't necessarily want to go to Paris, it's just the easiest eg I had). So $1400 in fees/carrier-charges, we'll say 5 annual fees of $89 (so $445) = $1845 total spent to get 2 return flights Syd-Paris. As opposed to $2100pp, or $4200total, for points-less flights.

I don't doubt there is or may be errors in all my above workings. And I don't doubt things could change, or flights could be cheaper, etc. But the way I'm looking at it, we got a CC so we could have the "security" of being able to afford unexpected large bills without worry (and worry about it later), which we haven't needed to do yet but the security we were after is there for us now. But getting potentially 2 flights, for the "price" of 1 flight, to some insane destination, just by living our life basically as normal as we have been or will - I'm not unhappy with this decision one bit.

pv4
11-02-2014, 09:59 AM
(because Bpay is either unavailable on this card or i haven't bothered to find it).

Just had a look - the option to Bpay which was previously not there is now there. So I don't ever go out of my way for this card now..

The Dunster
11-02-2014, 10:57 AM
Reward schemes are a scam. You can save more by simply shopping around.

pv4
11-02-2014, 11:10 AM
Reward schemes are a scam. You can save more by simply shopping around.

Because I'm interested, in invested, in it - what do you base your opinion from?

Using my hypothetical Syd-Paris trip, where do I find return flights for two for $1800 or less?

In regards to shopping for cheaper prices - I stress the importance that I haven't, and don't want to, change my currently lifestyle. I don't doubt I could save money on fruit/veggies by going to a market or something as opposed to a woolies, but my current lifestyle doesn't suit doing that every week. So if I'm getting groceries every week at woolies/aldi/coles/whatever, and that's the exact way I live my life, how is the scam coming into play?

And things like paying bills - land rates, water bills, internet, utilities, etc. How does shopping around save me more money that I wouldn't save with the "scam-card", and where does the "scam" come into play?

toad
11-02-2014, 11:41 AM
Thanks for the update pv! very interesting.
sounds like you are doing well from it

pv4
11-02-2014, 10:51 PM
Thanks for the update pv! very interesting.
sounds like you are doing well from it

Once I actually attempt to use the points one day, we'll see how well I'm really doing with it :rof:

But yeah, my outlook on it all is just as written and it seems like a really good decision to me. I'm getting mega discounts on future flights for just living my life as normal as I would have without the card.

pv4
11-02-2014, 10:52 PM
Did any of you other guys that were looking into similar end up making decisions?

Boz have you used your europe - amount of points yet?

militiamon
12-02-2014, 12:35 AM
Lol I don't work for travel world mate.

However I will point out that flights Syd - Paris can be had for $1800pp and less depending on circumstances (student, time of year, etc.). I've gone to Yoorop on $1100 return (student though). Your maths still comes out on top though.

Only point I will make is that it only makes sense if you were already planning on going to Europe or wherever. You talk about not spending outside of your normal spending habits to get the points in the first place, but this also applies to how you use them.

In the end it is basically a discount on your holiday, in the order of maybe 10 - 20%. Other than that, go nuts, but remember that the real finance nerds would not take a holiday in the first place :gentwhereisthefxxxinggentemoticonquotient:


Signed,
Someone who is terrible with money

pv4
12-02-2014, 06:58 AM
Lol I don't work for travel world mate.

:rof::rof::rof:

:gent:
:oops:
:brr:

Love your work 'Mon.

Back to the pool thread!

militiamon
12-02-2014, 06:45 PM
I really only made the post for that one line :rof:

Glad you picked up on it, rest was late-night garbage.

Superdylan
12-02-2014, 08:05 PM
Lol I don't work for travel world mate.




:rof::rof::rof:

:gent:
:oops:
:brr:

Love your work 'Mon.

Back to the pool thread!

Ffs

Stealing my lines are we petec?

The Dunster
15-02-2014, 04:57 PM
Because I'm interested, in invested, in it - what do you base your opinion from?

Using my hypothetical Syd-Paris trip, where do I find return flights for two for $1800 or less?

In regards to shopping for cheaper prices - I stress the importance that I haven't, and don't want to, change my currently lifestyle. I don't doubt I could save money on fruit/veggies by going to a market or something as opposed to a woolies, but my current lifestyle doesn't suit doing that every week. So if I'm getting groceries every week at woolies/aldi/coles/whatever, and that's the exact way I live my life, how is the scam coming into play?

And things like paying bills - land rates, water bills, internet, utilities, etc. How does shopping around save me more money that I wouldn't save with the "scam-card", and where does the "scam" come into play?

My mistake. I thought Hutcho's missus paid all the bills.

militiamon
15-02-2014, 10:48 PM
Ffs

Stealing my lines are we petec?

Haha, great sig SD, well played.

pv4
18-01-2017, 08:58 AM
Attn: finance nerdz

Who has done some wonderful&legal tricks & loopholes with their super, and what should us chums be doing similar?

WolfMan
18-01-2017, 09:29 AM
Attn: finance nerdz

Who has done some wonderful&legal tricks & loopholes with their super, and what should us chums be doing similar?

I'm not an expert by any stretch, but I recently found out you can use a portion of super as a deposit for investment property/ies.

Any dividends after sale must go into your self managed super fund, but seems pretty decent. Yet to speak to a financial advisor about the pros/cons, but just letting you know it is an option

The Dunster
18-01-2017, 10:01 AM
Attn: finance nerdz

Who has done some wonderful&legal tricks & loopholes with their super, and what should us chums be doing similar?

Invest in tattoo removal technology - it will be a huge industry when everyone realises their tatts are the 21st century version of the 80's mullet.

plague
18-01-2017, 01:11 PM
and child care centres. Boom industry scheduled to blow even further open as parents (voters) demand more middle class income. No pollie would dare say no, and every time the govt payment goes up, you raise your rates without having to pay more for pesky shit like wages and stuff.

plague
18-01-2017, 01:14 PM
Super: just be aware of the fees involved with SMSF. My accountant always said you gonna need about $200k before they become cost effective.


Note: my accountant hates Super and punches me in the face every time I mention it.

skippy
18-01-2017, 01:34 PM
and child care centres. Boom industry scheduled to blow even further open as parents (voters) demand more middle class income. No pollie would dare say no, and every time the govt payment goes up, you raise your rates without having to pay more for pesky shit like wages and stuff.

Not wrong here know a guy that is a partner in 2 and brings home over 10k/Month after tax that the government knows about.

The Dunster
18-01-2017, 05:45 PM
and child care centres. Boom industry scheduled to blow even further open as parents (voters) demand more middle class income. No pollie would dare say no, and every time the govt payment goes up, you raise your rates without having to pay more for pesky shit like wages and stuff.

Yep. No arguments here that's exactly what will happen.

I'm looking forward to what will happen with the emergency services levy now that it's being added onto our land rates instead of being charged to insurance companies.

I already pay $2200 a year for rates and I'm pretty sure that the insurance companies will find a way to offer me absolutely no discount on my insurance after they are relieved of the levy.

pv4
19-01-2017, 07:42 AM
I'm looking forward to what will happen with the emergency services levy now that it's being added onto our land rates instead of being charged to insurance companies.

I already pay $2200 a year for rates and I'm pretty sure that the insurance companies will find a way to offer me absolutely no discount on my insurance after they are relieved of the levy.

That's the thing innit - who will hold the insurance companies accountable? The government claims the levy is being put to land rates to increase the amount of insured houses.. will it lead to an increase in insurances though?

Jetmaster
19-01-2017, 09:59 AM
Attn: finance nerdz

Who has done some wonderful&legal tricks & loopholes with their super, and what should us chums be doing similar?

I have invested in property with great looking return already. It has to be a new property, you can't sell until retirement and the trusts etc are a bugger to setup, but once it is done it is done.

The Dunster
29-06-2017, 02:08 AM
Yep. No arguments here that's exactly what will happen.

I'm looking forward to what will happen with the emergency services levy now that it's being added onto our land rates instead of being charged to insurance companies.

I already pay $2200 a year for rates and I'm pretty sure that the insurance companies will find a way to offer me absolutely no discount on my insurance after they are relieved of the levy.

Can confirm being completely rogered by insurance companies to the tune of around 15% this year and by council with a 7% increase in my rates.

pv4
29-06-2017, 06:12 AM
Can confirm being completely rogered by insurance companies to the tune of around 15% this year and by council with a 7% increase in my rates.

Whom is or is meant to be holding these insurance companies accountable?

pv4
29-06-2017, 08:14 AM
Can confirm being completely rogered by insurance companies to the tune of around 15% this year and by council with a 7% increase in my rates.

http://www.dailytelegraph.com.au/news/nsw/fire-and-emergency-services-levy-delayed-insurance-companies-say-bills-will-rise-by-thousands/news-story/630ac46b6c5a51e95d65d9198fd6d5a8

Turns out it hasn't come in yet, and Berejiklian is practising her Gymnastics backflips.

The Dunster
29-06-2017, 11:39 AM
http://www.dailytelegraph.com.au/news/nsw/fire-and-emergency-services-levy-delayed-insurance-companies-say-bills-will-rise-by-thousands/news-story/630ac46b6c5a51e95d65d9198fd6d5a8

Turns out it hasn't come in yet, and Berejiklian is practising her Gymnastics backflips.

The legislation hasn't that's correct. But the price hikes to account for the insurance industries ridiculous gross profits are well and truly underway.
I know people in the insurance industry who are absolute flakes but still manage to earn well into 6 figure salaries - thanks to the very sizeable government kickbacks obtained when all insurers collude to lobby the relevant government ministers.

pv4
29-06-2017, 11:52 AM
The legislation hasn't that's correct. But the price hikes to account for the insurance industries ridiculous gross profits are well and truly underway.
I know people in the insurance industry who are absolute flakes but still manage to earn well into 6 figure salaries - thanks to the very sizeable government kickbacks obtained when all insurers collude to lobby the relevant government ministers.

I couldn't remember if a 7% increase in land rates was high or not.

Looking at past years, my rates have jumped:
15/16 - 16/17 = 5.2%
14/15 - 15/16 = 5.2%
13/14 - 14/15 = 2.5%
12/13 - 13/14 = 6.9%

How do they work this shit out, even?

pv4
24-07-2017, 07:57 AM
I couldn't remember if a 7% increase in land rates was high or not.

Looking at past years, my rates have jumped:
15/16 - 16/17 = 5.2%
14/15 - 15/16 = 5.2%
13/14 - 14/15 = 2.5%
12/13 - 13/14 = 6.9%

How do they work this shit out, even?

Attenzione: Dunst

16/17 - 17/18 = 4.3% for me

I just can't understand how they work these figures out.

The Dunster
24-07-2017, 10:35 AM
Attenzione: Dunst

16/17 - 17/18 = 4.3% for me

I just can't understand how they work these figures out.

Council calculates a rate charge by multiplying your property's average rate-able value by a dollar rate. The dollar rate used to calculate charges depends on your property's rating category, which is based on its main land use.

The actual value of the land is determined by the land valuer general in NSW using sales data they have gathered over the years.

If a council want more revenue from rates they simply come up with a figure and then apply for approval through the State Government and IPART will juggle the numbers to get them the desired outcome.

Without going into too much more bullshit accountants and economists do not understand prices or inflation, or depreciation - and probably never will. Which makes it all no better than throwing darts at a board.

plague
24-07-2017, 01:14 PM
I couldn't remember if a 7% increase in land rates was high or not.

Looking at past years, my rates have jumped:
15/16 - 16/17 = 5.2%
14/15 - 15/16 = 5.2%
13/14 - 14/15 = 2.5%
12/13 - 13/14 = 6.9%

How do they work this shit out, even?

Oh I can explain the 'how'.

One local council had it written into their senior management teams KPI's that they got a bonus if they got a rate rise pushed through even though it wasn't needed.

Remember that time that Lord Mayor resigned because he was passing round paper bags of his own money.

Well now it's paper bags full of your money being passed around and all completely above board and legal.

Enjoy.

Wilso8948
24-07-2017, 01:47 PM
Oh I can explain the 'how'.

One local council had it written into their senior management teams KPI's that they got a bonus if they got a rate rise pushed through even though it wasn't needed.

Remember that time that Lord Mayor resigned because he was passing round paper bags of his own money.

Well now it's paper bags full of your money being passed around and all completely above board and legal.

Enjoy.

It's all good we're building for a smart and sustainable city remember?

Jim
09-03-2020, 10:34 PM
Super: just be aware of the fees involved with SMSF. My accountant always said you gonna need about $200k before they become cost effective.

Note: my accountant hates Super and punches me in the face every time I mention it.

Better hold on for this ride if you have super