Prime Minister Scott Morrision and Opposition Leader Bill Shorten at a leader’s debate ahead of the upcoming 2019 federal election.
Prime Minister Scott Morrision and Opposition Leader Bill Shorten at a leader’s debate ahead of the upcoming 2019 federal election.

The Federal election: Why you need to take control of your cash

NO matter who is running this country following this week's federal election one thing is for certain - no-one cares more about your money than you.

As we've all seen in recent years politicians have come and gone like the wind.

We've had seven Prime Ministers in the past decade from both sides of the political fence.

And they are constantly massaging tax, superannuation and investing rules to name a few, which all impact our hip pockets.

I feel like I'm paying a bucketload of tax and I'm often left wondering where does it all go?

It's the taxpayer who gets hit the hardest when it comes to facilitating our nation's expenditure, so it's important you try and preserve your money and make it work for you as best as you can.

Australia is one of the highest-taxed nations in the world - our highest tax rate is 47 per cent for those earning more than $180,000.

And for those who have tried investment strategies to set themselves up financially, to say they're worried is an understandment.

 

The Opposition Leader Bill Shorten and Prime Minister Scott Morrision await the federal election decision which is less than one week away.
The Opposition Leader Bill Shorten and Prime Minister Scott Morrision await the federal election decision which is less than one week away.

 

For months now three major Labor policies have continued to draw headlines for all the wrong reasons. They are the dumping of negative gearing rules, the removal of dividend imputation credits and the reduction to capital gains tax discounts.

These are financial incentives many property and share investors have utilised in a bid to try and get ahead.

But if Mr Shorten does end up being our next Prime Minister and you're worried about your money, don't panic just yet.

Just wait and see what happens because if he is in the top job these changes will have to get through both houses of Parliament and that could be a mean feat in itself.

We could end up with a very messy Senate made up of pollies from all different parties.

While many retirees are devastated at the thought of losing their dividend imputation credits - and rightly so - one tough lesson can be learned here.

The fundamentals of money management in life always apply.

Make sure you are not living beyond your means.

Do you utmost to have a financial buffer in place and don't rely on anyone else to prop you up, particularly governments, because as you can see things can change very quickly.

Politicians are a greedy bunch, and many of them end their political careers with a golden handshake.

They walk away lapping up a six-digit parliamentary pension at retirement that will keep them ticking along nicely after they stop work.

But for the hardworking Aussie this isn't the case - it's up to you to set yourself up in retirement, particularly if you want to avoid living off the poorly-paid pension.

That's, of course, if you are entitled to receive it.

Limiting non-tax-deductible debt, boosting your savings, having assets including a roof over your head and hopefully good health should put your in good stead for a happy life once you stop work.

But as I say, the power is in your hands to do this.

sophie.elsworth@news.com.au

@sophieelsworth


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