Why’s I’d fair to tax the interest on savings when I can’t claim the increased cost of everything else as a tax deduction?

[danmat777]

I found I have to pay tax on all the interest my savings is earning now. That pisses me off because it’s going up less than the price of food, rent, etc… yet I don’t get a tax discount for paying high energy bills yet I get taxed for getting more interest on my savings which is only happening because I’m paying more for everything else!

Ultimately, if savings accounts rates go up to compensate us for the rising costs of inflation how is it fair I have to pay taxes on that? I’d rather 0 inflation and 0 tax (because it’s not paying interest),

 

[mobile7188381]

@danmat777 Who the hell said anything is fair. Life is not fair, realise it and get on with life.

 

[danmat777]

@mobile7188381 The govt pretends to be fair

 

[sajeev]

@danmat777 Everyone needs to pay tax. How is that not fair?

Just be thankful you've got savings earning interest income to get taxed in the first place. Heaps of people out there facing the same increased costs that aren't so lucky.

 

[danmat777]

@sajeev What’s the point of saving if it’s just going to get eaten by the government or inflation?

 

[sajeev]

@danmat777 So because part of it goes to taxes, you don't want the rest?

 

[cozette]

@danmat777 What’s the point of working?

 

[kijani]

@danmat777 I don’t think they’ve ever said it’s fair. Bank interest is usually the lowest return you’ll earn on your money.

 

[daniel3112]

@danmat777

I found I have to pay tax on all the interest my savings is earning now

Just take it out of your savings account and leave it in an account that doesn't earn interest. Then you will have no interest to pay tax on

 

[danmat777]

@daniel3112 But then I’ll be getting taxed by inflation

 

[quenton]

@danmat777 Just donate all your money away. Then you will have no money to pay inflation on.

 

[polygon]

@danmat777 >I don’t get a tax discount for paying high energy bills

you do it if its for business use

 

[dpardue]

@polygon It's good to have someone making such insightful and relevant comments.

 

[bluesky2023]

@danmat777 Income tax in Australia taxes income. That's why.

 

[quenton]

@danmat777

if savings rates go up to compensate us for rising costs of inflation

Nope, savings rates go up because the RBA put up interest rates. And the RBA put interest up to fight inflation.

It's not to "compensate us" like some life is fair bullshit.

 

[dpardue]

@danmat777 It doesn't make sense but if you were rich enough to make significant donations to political parties then you would have a relatively low amount of money in a bank account and you'd care more about the extremely generous CGT discount.

 

[labbish]

@danmat777 Welcome to inflation. Yes, it’s bullshit.

Sometimes you have to mitigate loss when comparative gains are hard to come by.

 

[thewayofholiness]

@danmat777 Lol. Because the country needs taxes and if you could deduct living expenses, you’d pay none.

 

[scaredvvv]

@danmat777 If you have a reasonably large amount of money and you are looking to preserve it for a fairly long time then just buy gold or silver. They will griw in value roughly in line with inflation over the long term. You are not taxed on that so you will avoid losing money from inflation and avoid losing money to taxes. You won't be richer but you won't be poorer either.

 

[presmom22]

@danmat777 That’s why offsets ruuullleeeeee