Making the tax cuts last

Sim · 23-05-2008, 11:04 AM

Making the tax cuts last | Vanguard news | Vanguard

Quote:

The Government has delivered on its promise of tax cuts.

But for average families will an extra $20 a week really make much difference or will it simply disappear into the household grocery or petrol bills?

Consumption has an unerring ability to expand with capacity to pay so regrettably we may be sitting here in 12 months time analysing yet another budget and wondering where this week's tax cut went.

A little bit of elementary financial planning can make the difference here. Behavioral finance studies show that with some simple techniques we can turn saving into a virtually automatic process that happens in the background and does not put us in the position of having to choose between instant gratification versus our long-term good.
The tax cuts will take affect from July 1. And there are commitments for the next two years so you can take a three-year view of this saving plan.

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DaveA · 23-05-2008, 09:34 PM

very interesting, i was expecting (being vanguard) a blow of their own trumpt... but they were happy to save your 50% off putting on your mortgage... however a touch unrealistic as nobody has a P&I loan, pays the standard variable rate....

but really something good to think about....

thanks sim