Treasurer blames ‘taxed-nots’ for risk of recession

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Treasurer Scott Morrison delivered the first of three ‘headland’ speeches on the economy yesterday, claiming that too few taxpayers are helping the Government reduce the deficit.

The Treasurer claims that too much of the burden for reducing Australia’s deficit is falling on the Government and not enough on the Australian taxpayer. Based on the current situation, Mr Morrison feels that it’s possible that more Australians will go through their entire lives without paying any tax.

“There is a new divide – the taxed and the taxed-nots,” said Mr Morrison.

“A generation has grown up in an environment where receiving payments from the Government is not seen as the reserve of the disadvantaged, but a common and expected component of their income over their entire life cycle, and not inconsistent with self-reliance,” said Mr Morrison. “On current settings, more Australians today are likely to go through their entire lives without ever paying tax than for generations. And more Australians are likely today to be net beneficiaries of the Government than contributors – never paying more tax than they receive in Government payments.”

Mr Morrison said that Parliament needs to get serious about reducing the nation’s debt and restoring the budget to balance so we have a better chance of surviving future economic downturns.

However, he claimed his job of reducing Australia’s deficit had proven difficult because of “budget sabotage” by the Opposition during the last Parliament, blaming the previous Senate for its unwillingness “to implement our agenda for budget repair”.

Opposition Leader Bill Shorten hit back at the Treasurer, by stating that the Coalition needs to realise it has won the Election and stop blaming others for the state of the budget.

“They won the election,” said Mr Shorten. “They now need to start acting like a Government.”

Mr Shorten went on to say that Labor had already suggested methods for adding around $80 billion to the economy, with proposals for superannuation reform, negative gearing and capital gains tax. He said if the Government is serious about repairing the budget, it should accept some of these suggestions, rather than hitting low-income workers with higher taxes.

“We’re prepared to put the national interest ahead of our political interests,” Mr Shorten said. “And if the Government supports our measures, you won’t hear me jeering about backflips and backdowns.”

The Chief Executive of Oxfam Australia, Dr Helen Szoke, is concerned that the Coalition will turn to taxing the poor – the ‘taxed-nots’, as Mr Morrison referred to them, rather than taxing the one in three large companies that, in 2014, paid no tax at all.

“Large multinational companies are the real ‘taxed-nots’ in Australia,” said Dr Szoke. “Our recent research found tax-dodging practices by multinationals deprived the nation’s public coffers of as much as $6bn in 2014 alone.”

Who do you think should be taxed? A reader of The Australian proposed that the Government should increase all taxes by one per cent, then reduce all welfare payments by one per cent, until the deficit is fixed. What do you think of such a plan? If the Government were to turn its attention to large companies and force them to pay more taxes first, would you be happier to then pay more tax to help reduce the deficit?

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Written by Leon Della Bosca

Leon Della Bosca is a voracious reader who loves words. You'll often find him spending time in galleries, writing, designing, painting, drawing, or photographing and documenting street art. He has a publishing and graphic design background and loves movies and music, but then, who doesn’t?

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336 Comments

Total Comments: 336
  1. 0
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    On which planet does our Government operate. Certainly not the one we all live on.
    Firstly Mr. Morrison — We all pay tax regardless of our income. Almost every item we purchase, or every service we use we pay 10% GST. If you are a welfare recipient that equates to 10% of your total income these people spend all the money they receive.
    Secondly — anyone not paying tax is due to the fact that they do not have sufficient income to be above the basic allowances.
    Thirdly — How much tax does Mr Morrison envisage that we would collect from these people. They don’t have enough income for the tax to make any significant impact on the income revenue.
    Its time to close the loopholes that the more wealthy have available to them to dodge the their tax liabilities.
    Its also time to ensure that overseas companies pay tax that should be due in Australia.
    There are plenty of tax avenues without slugging those that can least afford it.

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      Yeah BElle.
      So here is the next Hockey demonising the bottom end of town whilst protecting the top end. Never ends.
      This country does not belong to the top end and letting the rich avoid their tax obligations has been the game for too long. It needs to end and THOSE WHO ARE MAKING THE MONEY need to pay their corect and full taxes.
      WE NEED A NEW ELECTION to clear this cancer out of the parliament. I call of Morrison to resign as he is poison to the nation.

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      Could not agree more BElle, might be a good idea if the politicians led from the front and took a decrease in the truffles and wine lining their particular trough. Also where do they find the money to send to countries such as Indonesia which is far wealthier than Australia, allowing them to build up arms and certainly not passing it on to the needy? Plenty of money for refugees, none for our farmers, our veterans, sick and needy or elderly, most of whom have paid taxes through hard work and as you pointed out are still paying via the GST. These creatures supposedly running the country could not run a chook raffle without losing the chook. Most 12 year olds could balance the books better, it’s called spending within your means, something we plebs have to do.

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      Belle….The people that govern our country are not very intelligent nor creative. These puppets only know how to sell public assets, land to foreign ownership and cut back on the poor. The real people running this country are becoming more powerful than ever. Morrison will never crack down on corporations. It’s about time all religious organisations paid tax too. They have all had it too good for too long.

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      Very well said BElle. Unfortunately many people accept what he said at face value and think he has got a point. They overlook the fact that he is lowering taxes for high income earners and big business, not collecting taxes from multi nationals and spending $60b on submarines. He cannot be too broke. As for a recession, we have had it. We are getting back to growth slowly, gradually as international employment levels indicate.

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      Thanks, Belle. Morrison should quit immediately not only for showing his incompetence and inability to focus on the real tax avoiders, but also his scare-mongering in an event sponsored by Bloomberg for the world to see and reducing confidence in the Australian economy – like Keating in 1990, he is a destroyer of the economy.
      Dr. Helen Szoke is also right, as are many other comments in this forum. If Morrison’s simplistic brain cannot / will not figure out how to tackle complexities of collecting more revenue (instead of cutting spending), the simplest solutions are to tax all Large companies and Multinationals a minimum 15% of Revenue as Minimum Tax, and also tax all Overseas Outsourced work at 15% for all companies (also encouraging local jobs and generating more Income Tax as a result).

    • 0
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      Well said BELle.
      Politicians waste far too much of taxes collected from hard working Australians. They themselves need to be subject to the same rules, regulations & restrictions that the majority of Australians have to abide by. Until this happens the waste will continue. Their appears far to many multinational companies that seem to get away with paying minimal taxation. I also strongly disagree with Mr Morrisons inference that age that pensions are a benefit & not a right when legislation provides for such payments to those that require it. STOP the WASTE politicians.

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      This is becoming a habit, after much disagreement I am now agreeing with Mick once again.

      Joe Hockey should be unforgettable. After lecturing us about being lifters, not leaners, and wanting the retirement age raised to 70, he retires around age 50 on an indexed for life pension, then takes a job which will pay around a quarter of a million on top of his pension. And in a job where people equally well qualified would probably have taken on for nothing more than the prestige and perks.

      As for our politicians in general, Bob Dylan described them in the title of a song – “Blowin’ in the Wind.”

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      I”LL Second that MICK,
      And Turver i believe your truly right on with that comment.
      HEre is something else they are UP too and it needs reading and fixing.
      Basically what the pollies want is to Get rid of the information base and to privitise it all, so information that is usualful to us, we would have to pay for through the nose.
      WE must stop TBull in its tracks……unbelievable it should be free to all who need it. NOt just to the rich.

      Australia’s leading journalists have been “left with no choice but to speak out”.
      https://www.getup.org.au/campaigns/asic-privatisation/open-letter/can-you-chip-in-for-a-full-page-ad?t=meONps

      Eighty four journalists have launched a powerful Open Letter to Malcolm Turnbull, detailing the threats to media freedom and corporate accountability of the ASIC database sell off.1

      They say that if the Turnbull Government puts the corporate database under corporate control, it will impede their ability to scrutinise tax dodging, bribery, trafficking and other shady corporate affairs.

      The timing could not be better, with politicians back in Canberra this week.2 That’s why we’re giving this everything we’ve got at this, taking their message straight to the nation’s capital.

      This Thursday, we’ll deliver our 58,000-strong ASIC petition and Open Letter from Journalists in a flashy media stunt in front of Parliament House. This very same day, we’ll run a full page ad in the Canberra Times – making sure our message is seen by every single MP and Senator in the country.

      But to pull it all off, we need as many GetUp members chipping in as possible. Will you be a part of it?

      Click here to read the Open Letter from top Australian journalists, then chip in for a full page ad in Thursday’s Canberra Times.
      A few weeks ago, no one had heard of the ASIC registry – now the petition has over 58,000 signatures. Thousands of GetUp members have contacted their local MP, and tens of thousands have shared the ASIC explainer video reaching over half a million Australians.

      All of this public pressure forced Finance Minister Mathias Cormann to confirm last week that the Coalition is yet to make a final decision about whether to proceed with the sell off.

      It’s up to us to make this Open Letter as big and powerful as possible – by lifting up the voices of the journalists who shine bright lights on the dark underbelly of corporate Australia. First, with a full page ad in the Canberra Times, followed by a loud, showy petition delivery at Parliament House that same day.

      Click here to turn the heat up on ASIC as politicians gather in Canberra this week.

      Journalists are on the frontlines exposing dodgy corporate behaviour using the ASIC database. They know best the risks of privatisation, which is why they’re speaking up. Will you back them in?

  2. 0
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    I take issue with this bully. We are all taxed. If we eat or ride in a car… This guy ploughed mercilessly through the immigration job and now the treasury. He seems to look for the weak and powerless to trample while ignoring the rich tax manipulating parasites. Next PM?

  3. 0
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    Our country is in for a massive wake up call and its coming our way sometime soon. My adult children will not know what’s hit them because we haven’t had a recession for nearly 25 years. As a country we have grown very complacent…… only way to solve our tax issues is to come down hard on the multinational companies to pay their fair share and also broaden the tax base and the easiest and fairest way to do this is to increase the GST, then at least everyone is contributing.

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      There is a big big depression forecast in the next 3 years. The state of the world would have to confirm what is coming.

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      Each generation carries debt from previous generation.
      We paid for infastruture for the current generation. We discovered and developed technology for future generations. Its their turn next. They seem to want a free ride. Parents to buy homes for them and a country with no debt. This current generation spend their money and then want to be babied. It’s time for them to wake up.

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      Despite ScoMo and his mates comments the problem is not spending we are in the bottom1/2 of OECD countries in relation to spending. The problem lies in income with top 50 companies in Australia not paying tax because of avoidance schemes. If we took on board business welfare such as negative gearing etc then perhapos we wouldn’t have to cut payments to the poorest in society. If I remember it was only a couple of decades ago we paid off Snowy Mountain Scheme. Infrastructure investemnt provides economic benefit, just as investment in hospital means less people being frequent users creating health economic savings in long term. Same for education. Unfortunately there is no understanding of economics in our government. That is why we have Fraudband instead of NBN.

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      GST is anything but fair!

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      GST fair? So it’s fair that someone whose income is so tiny that they have to spend every cent of it on necessities pays 10% tax on the majority of their income (all except that part spent on a very few items that are exempted) while the rich guy who can afford to save 3/4 of his income (hoarded in tax havens), import from overseas or buy duty free when travelling, and claim grey-area private expenses as business tax deductions pays a 10% on a tiny fraction of his income and gets the rest tax free.

      Doesn’t sound at all far to me, Tmac.

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      That reminds me Rainey I need some new clothes so why take an empty suitcase and take myself on a trip over seas to buy them. I can have new clothes and a holiday all rolled into one. Best of all I can have the clothes made to fit me rather than those ill fitting from off the shelve here.

      I was disappointed on my last trip they didn’t have wanted I wanted duty free so I’ll add that to the list as well.

      I’ll also check on my overseas bank accounts as well. Might stop of in NZ and check my accounts there as well as they pay higher interest than here in Australia.

      So why whinge Rainey when you too can play the game.

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      Who can play the game, OG. You are happy because the rules benefit you, but hundreds of thousands of Australians CAN’T play by those rules because they are disadvantages. For my part, I could no more shop overseas than fly to the moon. I had to choose between putting shoes on my kids’ feet and paying the mortgage. And that’s despite working 80 hours a week most weeks. You just have no clue – or probably you do, but you have no decency. You are infected with greed and ego.

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      No the rules don’t suit me. I just use the rules to play the game so that it gives me the best outcome. I shop overseas if it suits me and invest overseas if it suits me too. Having a mortgage is a dead loss unless you can write off the interest. All you need to do is know the rules and use those rules to play the game. If you don’t know the rules then you should not be playing the game.

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    For a starr everyone pays the GST tax – so Morrfison is wrong.
    But a much more sensible system is a ‘Transaction Tax that fully replaces the current complex, inefficient, & ineffective system. A TT system would tax every cash transaction (eg pay, cards, ATM withdrawals. transfers etc – no exception) – no annual returns, no tax lawyers/accountants, catch all internet purchases. catch profit shifting etc.
    See below
    TRANSACTION TAX
    INTRODUCTION
    1.tThe current federal tax system is far too complex
    2.tThe ever increasing amount spent for online purchase less than $1000 per item results in ever decreasing GST revenue – & it’s too costly to impose & scrutinise GST collection on these items
    ASSUMPTIONS:
    •tTotal gov’t revenue in 2016/17 is same as for 2014/15 = $405B (but this includes excise & duties) – budget.com.au – Appendix B
    •tTotal gov’t expenditure in 2016/17 is same as for 2014/15 = $435B (apca.com.au)
    •tValue of all Centrelink payments in 13/14 = $154B – assume same for 16/17
    •tTotal value of all monetary transactions in 2016/67 is same as in 2014/15 = $25261.15B
    •tA 2% Transaction Tax would theoretically raise $505.22B but allowing for 15% lost revenue gives a nett tax take of $429.44B– sufficient to bring the budget into surplus – ($429.44B –$435B +$59.7B excise & duties) = $54.1B surplus
    THE TRANSACTION TAX SYSTEM (SIMPLIFIED)
    1.tA 2% (say) tax on every monetary transaction (total non-cash transactions in Australia in 2015 = $25261.15B) – no exception (Treasury would determine the initial rate)
    2.tNo other federal taxes (but duties remain as is)
    3.tA scheme for direct payments from gov’t to eligible applicants (compensation) to ensure individuals pay no extra tax & receive all benefits to which they were entitled previously – so no one is ‘worse-off’
    4.tFor example: transfer of wages from employer to employee; payments for groceries etc.; all repayments onto credit cards; all payments for items purchased online; transfer of funds from a transaction bank account to a term deposit account; all payments by cash, cheque, credit card, debit card, EFTPOS & ATM, high value transfers
    5.tCompensation=all Centrelink payments in the year preceding the change + new claims
    6.tCentrelink payments would be indexed as now
    7.tSystem for Centrelink payments: by application (claims) with a declaration; penalties for false declaration.

    REFERENCE
    thetransactiontax.org/overview/
    http://www.apca.com.au/payment-statistics/transaction-statistics/cheque
    http://www.abs.gov.au/ausstats/[email protected]
    sf/Latestproducts/5506.0Main%20Features12013-

    http://www.abs.gov.au/…/5506.0Main%20Features22013-14?…0...
    http://www.budget.gov.au/2015-16/content/overview/html/overview-29.htm

    IMPACTS
    1.tGov’t must pay all benefits from consolidated revenue – visible budget allocations
    2.tNo annual tax return – individual, company, not-for-profit, trusts etc
    3.tMuch reduced ATO size (notwithstanding increased staffing for the necessary audit function) – but an increase in Centrelink staffing (though an overall reduction in ATO & Centrelink staffing)
    4.tNo unproductive tax accountant/tax lawyers & support staff
    5.tCatch ALL online purchases/sales
    6.tCatch ALL financial transactions made in Australia (eg all sales)
    7.tNo difficulty as currently experienced in determining which items are subject to GST
    8.tLarge reduction in size of the ‘black market’ – it’s just not worth it at 2% possible saving (given the potential penalties)
    9.tEncourages vertical integration to minimise tax – a good thing for productivity
    10.tReduction in State/Territory taxes – negotiable
    11.tSimplified accounting requirements – especially with the automated banking & sales systems
    12.tPoliticians are able to promise grants, payments, reduction in the transaction tax rate etc – all from budget
    13.tBalance the federal budget
    PROBLEMS
    1.tPoliticians will want exceptions to gain votes – but a gov’t can reduce the TT rate & make other direct grant undertakings (eg social services, research grants, study scholarships etc.)
    2.tSubstantial legislation required & a transition scheme
    3.t‘Centrelink’ will be inundated with applications for compensation & payments
    4.tThe ATO will need to increase its resources for the increased ‘auditing’ role & penalising role – re applications for compensation & payments (but an expected substantial overall reduction)
    5.tNeed to have transitional arrangements – eg: adequate notice to enable IT developments; industrial arrangements; calculation of the required tax rate; public education arrangements; lobby groups; – but transitional arrangements are feasible.
    6.tLobbyists for lawyers, tax accountants, big business (mainly international businesses) and some unions will work to keep the current tax system – considerations re: donations to political parties; work, tax avoidance
    DISCUSSION
    •tIncorporated entities already require auditing – substantial penalties already apply for understating figures by auditor
    •tIndividuals will be audited as now by the ATO or Centrelink or other gov’t body – with much heavier penalties for fraudulent claims

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      Nice one CDBStock. This has been raised a number of times. I think it needs heavy scrutiny and evaluation. Maybe an Online Petition to at least get the Government to investigate it. Certainly has merit.

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      Yeah. Morrison is one of the lying pieces of work in power and readers need to not believe a word of it.
      Collect the correct rate of tax from the rich and multinationals Morrison and then come after those who do not have 2 razoos to rub together. What a moron you are. No credibility whatsoever.

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      Transaction tax is a very bad idea. The economy would come to a halt as people would stop transferring money and the black economy would prosper.

    • 0
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      This needs to be EDUCATED into our population so that we ALL understand this matter
      Regardless of the “tax changes” that the govt comes up with, it will be those who least afford them that will pay them.
      BRING IN THE TRANSACTION TAX!!!!

    • 0
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      The transaction tax will hurt those who can afford it the least. It is very easy to avoid if you know how.

    • 0
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      Old Geezer – re your ‘ The economy would come to a halt as people would stop transferring money and the black economy would prosper.’
      You have misunderstood – it’s a big ask but if you have read my description of a ‘TT’ you would understand that: people & businesses & other entities cannot avoid money transfers (eg – employer transfer of wages into employees bank accounts, pay-off credit card, bill payments by cash or cheque or direct deposit, withdrawals from ATMs/banks etc); the black economy would almost disappear – simply because 1 cash has to be obtained by pay or withdrawal & 2 the low rate of a ‘TT” (around 2%) would render it just not worth a saving of 2% shared considering the penalty

    • 0
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      A TT of 2% would probably be a bit high.

      1% would do it. Old Geezer would finally have to pay tax on all that investment and derivative trading.

      Those on lower incomes would benefit really as they might pay 1% on everything but not the 10% GST and those playing markets would finally have to pay a fair share.Best of all those huge corporations pulling 125 billion out of the economy each year would finally have to pay some tax.

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      Sorry Transactions tax is jus tone the bright ideas which will doom us quicker than current one which wasnt bad but hasnt been policed as so much isnt. Meaning no government has had the guts or determination to actually close gaps in income and other taxes paid under Federal rules. Nothing much since 1970’s when Howard was Treasurer and stopped the bottom of the harbour scheme. Since then a few small changes but the real ones no – and why? Not rocket science. Far too many in politics MPs and behind the scenes in the back room offices of Liberal Labor and now Greens who took 1.6 million donation. They wont shut the door as they use it themselves to avoid having to pay. Even public servants have they say managed to build in ways of not having all income taxed in PAYG.
      And GST is not Federal money it goes to the STATES. To run hospitals schools etc and was put in to stop using consolidated revenue to fund this.

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      No I wouldn’t have to pay a transaction tax on investment and derivative trading as there is already a way around that one.

      We did try some debit and credit taxes a few years back now but they were soon stopped as people did whatever they could to avoid them which slowed down the economy.

    • 0
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      Old Geezer – your ‘No I wouldn’t have to pay a transaction tax on investment and derivative trading as there is already a way around that one’ proves you misunderstand the ‘TT’.There is no way to avoid tax. Re trading: money is either paid by you as purchaser (TT) or paid by the broker to you or broker transfer to your account (TT). If you can explain how tax can be avoided legally or illegally pleaase enlighten us or propose a mod to a TT.

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      Big Val – After 5 years rorting the ATO (& US) & under great pressure from lawyers & accountants & us Howard as Treasurer finally closed the tax loophole in 1980 – not the 70s – (bottom of the harbour) – good! But there are rorts today (profit shifting, overseas ‘commissions’, over-priced sales by the one multinational to its Australian operation, overseas consultancies , false (but legal) claims for R&D, dubious travel claims etc)
      The reasons for not going to a TT are many but the main ones are: lobbies by tax lawyers/accountants, political party funding (by groups that benefit from the status quo eg Google, Apple, unions, big end of town, churches, some ‘charities’ etc).
      Re the GST: too many exemptions, not sufficiently broad, too low, impractical to impose on internet purchases; not fairly distributed to the States/Territories; & a cop-out by Feds to reduce funding for health, education, infrastructure etc

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      Gee you really want the economy to go into a recession with all those ideas. An economy requires money to circulate to prosper. If the money flow stops then a recession or depression is the outcome.

      Remember the biggest problem during the GFC was that the banks didn’t trust each other so the overnight cash balancing stopped happening. It was in the failure of money to flow through the economies of the world that caused the GFC crisis.

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      Old Geezer – youy haven’t given your reasons yo could avoid tax or suggewsted mods.
      Well – you have solved the GFC cause – it wasn’t the sub prime & rates fixing & other Wall St shananigans – it was a distrust among banks – congratulations!

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      Yes that’s right the banks just didn’t trust their mates any more.

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      ‘Mr Morrison said that Parliament needs to get serious about reducing the nation’s debt and restoring the budget to balance so we have a better chance of surviving future economic downturns.’
      Fully support – that’s why we need a ‘TT’

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      So you want a recession or a depression because that is what will happen with a TT. People loathe paying taxes so their wallets will be shut tight. No money flow then the economy suffers badly.

    • 0
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      Further info re a TT
      TRANSACTION TAX
      SOME FIGURES
      1tTotal Tax revenue in 14/15tttt$357406M
      tRef: abs.gov.au/…….
      2tTotal GST revenue in 14/15t(Pool)ttt$561000M
      tRef: aph.gov.au/…..
      3tNo welfare recipients in 15/16tttt7.3M
      tRef: budget.gov.au/…..ttt
      4tTotal welfare paymentttttt$100000M
      tRef: budget.gov.au/……tt
      5tNo taxpayers in 11/12ttttt12.6M]
      tRef: bettertax.gov.au/….
      6tNo net taxpayers in 11/12t9.8M
      tRef: bettertax.gov.au/….
      7tNo different taxest(federal gov’t)tttt99
      tRef: taxreview.treasury.gov.au
      8tParliament estimates (14/15) GST revenue would increase 50% by an increased rate of 15% and full expansion. This leads to an additional $171000M over 4 years due to expansion of the GST (left at 10%) and this leads to a reduction of $102000M over 4 years by reducing the expanded GST rate from 10% to 9%
      9tAssume 50% tax payers (of 12.6M) have taxable incomes less than average (79k)
      10tAssume a Tobin Tax is as originally proposed – levied only on currency trades
      t
      PLAN FOR TRANSITION TO A TRANSACTION TAX SYSTEM
      A TT must be phased-in for the following reasons:
      •tReassure the public – no disadvantage – get used to the change
      •tAllow time for development of systems
      Stage 1tYears 1 & 2tReduce GST to 8% & expand GSTtnew GST revenue would be increased by $77000M
      Stage 2tYears 3 & 4tGrant all net income earners below average adult full time income of $79k pa $500 pa compensation, tapering for earners over $79k pa by 1%/$100 pa over $79k patimplement a Tobin Tax of 0.5%
      Stage 3tYears 5 & 6tAbolish GST, & all other federal taxes except the Tobin Tax, excises & dutiestimplement a full TT (see description) – this would require a compensation scheme

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      Any business that does not have to be in Australia will move off shore so the only TT they pay will be money out of the country. We’ll barter for everything else so no TT there.

      Cypro-currencies will take off and the government will have no control over them.

      Compensation schemes are a disaster and take too much paperwork and manpower to administer. That’s the main reason why the GST has not been increased.

      Worse of all is the money flow will be virtually stopped as no-one will move there money.

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      OG, let them move off shore, if we have a transaction tax, they will still have to pay more than they do now. Some of them for the first time.

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    I can see us having another election within 12 months. ScoMo and Malcolm are both useless! So how do we get more revenue – we need to bite the bullet:-
    1. Increase or widen the GST. We have a very low level of GST type revenue compared to the rest of the world.
    2. Get the unemployed of their collective arse and into work(Ch.7 last night 1000’s of jobs going begging)
    3. Force companies that don’t pay tax by fining them twice the amount of tax they owe. Lets start getting some balls as a country.
    4. Force those States that don’t have Land Tax to introduce it and get rid of Stamp Duty on house purchases and then re-evaluate the GST cut. Land Tax is a proven method of revenue raising with minimal impact on house owners.

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      I think stamp duty on house purchases a great way to raise revenue for the States. Why should international buyers get a free ride.

      Buying and selling houses is a national past time and it is fair that some tax is raised seeing the capital gain is discounted as much as it is.

      GST rises and land tax will come. Wage stagnation means tax receipts are not rising as they used to in the past. Falling incomes from investments and all the superannuation tax minimisation schemes are playing havoc with government receipts.

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      It should work that you either take NG along the way or you pay full capital gains at the end. The current system is unworkable and costly to the Budget.

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      Agree Jolly. This government will not last from what I can see.

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      I can see the Government going full term because an election is simply not good for either major parties.

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      As the reality of this crew sinks in the public will need to fix the festering issue so that we get government. It is clear that Turnbull and Morrison have absolutely no intention of compromising. That is how dictatorships behave.

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      Please explain how an increase in the GST has any positive effect on the Federal Govt debt. It’s not the Fed’s ncome.

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      This same guy who is wailing about inadequate tax revenues wanted to raise the GST and give the proceeds to companies as a tax cut, because apparently the nation didn’t need the extra revenue. Make up your mind, ScoMo. You are sounding like an incompetent.

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      More GST less money Federal government has to give the states form other revenue sources.

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    all good points Jolly but only problem is we have dumb voters in Oz who choose useless senators that will never let any of those ideas get up…..lets add a number #5 to your list – get rid of the Senate.

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      We DO have a lot of dumb voters who think they are voting for their football team. Sad.
      The senate is a necessity though and is a safeguard for dirty governments like the current one. Thank the Lord we have so many Independent senators. Without them we would all be paying much higher taxes already whilst the rich would have their tax cuts…….again.

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      Micks right far too many still vote Labor because Dad did and so did they when starting out – older ones should know better. dumb to let them all just play who’s turn on the government bench and who’s on opposition because that has been the case just about since Federation.
      And since the 60’s the far left who know infest both Labor and Liberals, and fight with words whilst running the country into the ground, have dumbed down majority they can with same words changing perceptions and getting re-elected time and time again.Even though most fed up with way it goes on.
      Need new blood.

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    who showed labour to increase the deficit,thanks scott and map

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      Message from your sponsor….again?

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      Too right.

      Why didn’t Labor just let the banks fall over. This could have been long past us by now and we really didn’t need Macquarie Group and IAG anyway did we?

      I wouldn’t have minded as I only have a few Australian shares and next to no money in fixed term or bank deposits so my loses wouldn’t have been too bad.

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      The problem with the “Banks just falling over” is that we – the people – will be forced to foot the bill for refinancing them via a “Bail In” as happened in Cyprus some years ago and very recently in Austria!

      Politicians have painted the “Average Person” in this country into a corner from which there is NO escape unless we’re all going to “Stand Up & be Counted”!
      THE’RE A “PACK OF GREEDY CRIMINALS”!!!

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      True Patriot but I was in a particularly cynical mood today. It is just annoying that those bagging Swans saving of our banks have no idea how close to the edge we were. Even the US FED threw billions at our Central bank to stave of a crisis. As it was our mortgage trusts were in strife and are still unwinding and paying out frozen accounts.

      Those who do not understand what the Labor party did just keep whining about it with no idea of how dreadful the lack of action under a LNP would have been.

      Surprisingly many have all savings in bank deposits and fixed interest believing their money is safe.

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      I could never understand why anyone would invest in those mortgage trusts myself. I was able to borrow money a lot cheaper than they were paying in dividends. That said to me that they sure had some risky investments in their portfolio.

      I remember going along to a club meeting one night and they were discussing putting their excess funds into a mortgage fund. I said something doesn’t not gel for me with them as I can borrow money cheaper than they are paying your in interest. I was dismissed as an idiot that had no idea what they were talking about. It wasn’t long after I got a phone call from the Treasurer asking me for advise of what they could do as they needed the money but it had been frozen.

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    It looks like a GST increase coming and a broad based land tax.
    It is too hard to tax the internationals and the tax rebates and concessions of Howard’s era will be difficult to claw back.

    Morrison is right though. No one much is paying any tax and the deficit won’t fix itself.
    Pity they sold off all those lovely dividend paying public assets. Those would be jolly nice.

    Most Australian’s have a house, a bit of super if an ordinary worker and not much else.
    Howard could never have seen wages stagnating and negative bond rates when he gave out all those tax concessions, especially superannuation minimisations of tax.

    It certainly needs fixing but will be difficult without causing a damaging recession.

    I doubt lowering taxes for corporations and high income earners will work.
    If someone can explain how this increase in income for already high income earners helps pay off the deficit I’m willing to listen.

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      Might be right. This is probably Morrison’s way of peppering us up. What a dirtbag blaming the poor for the woes of the nation whilst the top end is living it up and not paying their correct amount of tax. A game!

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      Rae I have to disagree with you as regards that there are heaps of jobs out there for willing workers. Why oh why do the baby boomers sit back and blame the younger generation for being lazy. In case you don’t know Rae it is difficult out there to get a job. This current Fascist Govt has all but got rid of manufacturing in Australia. The car industry has gone thanks to the trade deals with Korea and Japan and now the Federal Govt is hell bent on getting rid of the steel industry to satisfy the terms of the China trade deal. And in nursing alone our graduates can’t get jobs because of all the nurses being sponsored out here from Britain and the Philippines and many other countries. The private RTO’s are encouraging students to sign up for expensive courses and then at the end of it the student is in debt and still without a job as it’s cheaper to hire overseas workers instead of Australians. Wake up and do something practical like voting this current corrupt Govt out of power.

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      I never voted them in.

      Yes I agree Snowwhite. My comment below was entirely out of character. I was being cynical.

      The destruction of manufacturing and processing and lack of job prospects for our youth is appalling.

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      BUt dont forget why we lost manufacturing. Labor Hawke Keating 1980’s after Hawke first took donations from big business for productivity gains and high profits for the bosses. Held back wages til 1996 and Howard for any rise could count. And the rest of them still put tariffs on our exports but we stupidly didnt on their imports. Why China got our jobs and now owns the most Gold in the world and could bankrupt most nations. I never did think tariffs would be lowered by all the nations. For years farmers shortchanged too on US France and others helping theirs with money whilst ours had to borrow pay interest and sell off the land. Only now we allow China and anyone else to buy it.
      Come the food wars which is why governments are buying land up to feed their own populations – we could well starve as food grown here goes out to them. We dont have enough defence forces to stop anyone landing on our beeches let along taking all that is grown as we starve. Horrific maybe but that is reason behind foreign governments buying our arable land. We’ll never get it back as wont come on market.
      Worrying trend along with allowing them to buy up properties when not citizens to leave vacant and not pay stamp duty in many cases.

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    Jobson Grothe will fix the problem once everyone is working again…..

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      Morrison could start by ensuring job agencies are paid by the job applicant, with government support, only after a suitable job is found.

      Rent and food stamps with an opal card for transport and a voucher for suitable clothing might encourage a few of those needing jobs into the jobs waiting for them.

      Sounds harsh but I fail to see why self funded retirees and recent retrenched should be the only ones paying the price for the current mess.

      Time to crack down on those scamming the system and those contractors rorting the few taxpayers still paying tax.

      I’ve recently met a couple of young people here on working visas who had a job within 3 days of arriving. There are heaps of jobs for those willing to work.

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      For jobs which do not exist and disappearing jobs due to robotics. Morrison is such a hypocrite. First they close down manufacturing then they allow jobs to be sent to the third world and now it is the fault of average and lower income earners.
      WE NEED ANOTHER ELECTION, SOON.

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      I guess you will get a few people temporary employed by having another election but unfortunately a lot of those employed to do the election already have another job.

      Manufacturing closed down because it is simply cheaper to do business elsewhere. We have simply priced ourselves out of the market thanks to Labor and the unions.

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      I can’t agree on the jobs issue, Rae. Sorry. The figures speak for themselves. Anecdotal evidence about a few people getting a job doesn’t cut it. What qualifications do they have? Where were the jobs? How secure? Doing what? What is their health like? I know lots of folk who have found jobs readily, but equally I know many who haven’t a hope of getting any reasonable employment given their background, lack of qualifications, state of health, family situation, etc.

      The bottom line is that there are millions unemployed and under-employed and there are too few job opportunities to accommodate them.

      What we need is for the TOP END to pay tax. The dodging and minimization has to stop! And yes, the attacks on retirees and the recently retrenches have to stop also. These are the people whose spending generates growth. Taking from them is plain STUPID. Tax the wealthy and stop the flow of money into overseas tax havens. Use that revenue to INCREASE some welfare (like aged and disability pensions) and INCREASE services, and invest in infrastructure, thus driving growth that drives more jobs and more tax revenue. It’s a simple formula, so why does this stinking inept government insist on doing precisely the opposite? No wonder we are headed for depression!

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      It may be “cheaper” to buy from the third world Geezer but a responsible government will not destroy local jobs when there are no other jobs to go to. All the talk of “an exciting new world” from the current no idea PM will not avoid the dole queues when jobs go and no new jobs exist. You need to separate the facts from the political lies meant to subdue the mentally challenged who get done over.

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      I agree.

      The point was job agencies should not be paid just to process clients.
      They should only be paid once a job is secured.

      So many wonderful ideas and inventions have been sent overseas with nothing to show for it.

      We should have state of the art renewable energy plants employing hundreds of thousands using our resources including enriched and rare sands and lithium. Instead we have practically given that wealth away to be carted overseas on other countries trucks and ships.

      The lithium mines have been sold if you can believe such stupidity.

      Where is the major silicon valley producing the wifi devices we were involved in creating.

      Even our brilliant medical inventors are stuck with no investment or capacity to borrow to develop and a government that can’t do much other than strip money out of retirees savings.

      Pathetic.

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      Rae good thinking. Centrelink clients shouldn’t get cash at all for the kids. Many make a career out of having enough not to ever have to work. Adults pay is not much more than existence. But its the kids money that makes it attractive. Plus benefits they get on top. Vouchers detailed for needs of kids. Stop many of my neighbours trips to TAB or Pub living off dole or DAP with Pay TV car etc and working on the side too needs policing.
      Smart Cards in would do a lot for rorting of the systems health PBS etc
      Many of these payments rorted.

      And dont forget one thing Labor did too. 2009 they cut the age pension for couples. Many say OK. But its not OK its unfair. Means they between them now get only 1 and a half a pension. (150% of single rate) Women should be up in arms.Most worked who now are on or close too pension and no super as too late for them. 1990 cant save enough to live on. And look at how many living off benefits go straight on pension now and still many arriving.
      Face up to it. We’re in a right pickle.

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