Saturday, February 6, 2010

Week Three Reflection

The theory covered this week was Unit 8: Taxation.


  • I now know how to calculate my own tax independently and confidently.
  • Tax used to be a foreign concept but I now see that taxation is necessary and contributes to my overall well-being.
  • I need to be aware of rebates when I begin investing into a managed fund next year.
  • Private health insurance is quite beneficial because I earn more income.
  • In the future as my finances get more complex I need to be aware that I only want to pay the amount of tax that I am obliged to, not less or more.
  • It's better to get reimbursed for something rather than getting a tax deduction.
  • Negative gearing at the present seems like a good idea because I don't expect to earn much interest on the cash in my bank accounts at the moment. Also mortgage rates are higher than savings rates.
  • It's interesting about capital gains, that capital held for more than a year has a discounted tax rate, which is beneficial for investing in the long term.

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