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checkvault
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Victory, post: 0 wrote:
The single most important point of all Robert Kiyosaki’s books that I’ve incorporated into my life is: If you earn a “wage”, you pay income tax first and are then left with the nett after tax amount to pay all expenses… If you both structure and run your life as a company, you earn, THEN pay expenses, then pay tax on what is left… Think home electricity bill is (say) 200/month? It’s actually costing you 350 (or more) out of your gross. Get your head around this and decide to do something about it and life’s financial equation changes favourably forever.

Have nearly 100% fully implemented this ideology, just about to sell my house. Such a strategy results in a completely different financial outcome for my future, one where I still have a great lifestyle on a salary so low I can even further claim low income tax-break… I don’t even personally own a car any more, why anyone would go to work for three months of the year (or more in some cases) just to pay for a car to drive to work in is now (thankfully) completely beyond me.

Laws were created BY wealthy people FOR wealthy people, not FOR the working class, but indeed to FACILITATE the working class subsidising wealthier thinking people… There is no justice in income tax law, merely determinations to keep the working class right where they are –> working and paying the lion’s share of taxes with such inequitable rules such as, (generally) not even employees travel to and from work is tax deductible. Even the GST is paid only by the end user and besides collection and accountancy costs, it has no negative impact on businesses.

Have a long hard think about why and how Google, E-bay/Gumtree and the like contribute absolutely no GST and hardly any income tax to this country and yet, even alongside the politically hot-potato discussion about the possibility of raising the GST percentage even further, the sheep herd mentality continues to throw money at these under-contributing international companies. Go figure.

In my industry (earthmoving and mechanical repairs of such), I’m seeing a huge shift in employment policy amongst my peers due to ever-increasingly ridiculous OH&S and Industrial relations laws, especially since the introduction of the stupid, stupid, STUPID parental leave scheme and noose around the neck un-fair dismissal laws…

This shift is resulting in earthmoving companies AND related business becoming more and more inclined to hire contractors/sub-contractors in preference to employees, and whilst the ATO tries desperately to introduce more layers of reporting to slow or even stop this being done, modern software and other technologies make it easier to comply with rules designed to negate the occurrence.

Here in Western Australia I get so many (particularly ex-mining) people through my door who have completely distorted expectations about the requirement for “productivity” what is and is not okay to do as an employee. A couple of examples are:
1) Arriving to work for a 0700 start at 7.10 and then getting dressed for work to maybe be ready to start work twenty minutes later, yet expecting it’s okay to book from 7am,
2) Waste time my company pays for checking their emails and text messages throughout the day as and when they please (even sometimes expecting me to wait for them to complete that before offering me their attention for discussion about work related matters).

Recently my sister’s bookkeeping company (that own a beauty salon) was taken to unfair dismissal for some ridiculously frivolous reason where the applicant didn’t even bother to front for the hearing. After winning the case and with an $8k legal bill, my sister vocalized the same decision that I and many of both her and my clients have also decided, which is to never, ever, ever again hire any employees on wages or even sole trader/partnership businesses.

My earthmoving business clients, some of which have 40 machines, now have no direct employees and only hire “workers” as either companies in their own right, or through labour hire companies. I now does the same thing, I tee up and organize the work, hire short term casual contractors to complete the work in batches or projects, then dismiss that costs after completion ..

Hi Victory,

I can see how your thoughts align with the topic. Hiring contractors instead of employees does have a negative impact.

Here is an article on Linkedin which talks about the same topic. Although the topic is ‘India-centric’, the thoughts mentioned aren’t too different in other places of the world.

https://www.linkedin.com/pulse/more-than-jobs-india-must-churn-out-job-creators-ravi-venkatesan