How will corporate tax cuts affect your Age Pension?

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Australian welfare groups and peak bodies have banded together to protest the Government’s proposed corporate tax cuts, saying they are “unconscionable” in the face of nationwide poverty.

A letter sent to all Senate crossbenchers on the weekend from groups such as Anglicare, Oxfam Australia, the Salvation Army and the Australian Council of Social Service (ACOSS) opposed the corporate tax cut from 30 per cent to 25 per cent.

The Government aims to reduce the tax rate for companies with a turnover of more than $50 million. Welfare groups are concerned that if these cuts pass, more will be on the way at the expense of welfare payments, social services and pensions.

“We are concerned that already disadvantaged Australians may pay more for health, education and community services,” the letter states.

“We believe that a company tax cut is a mistake while almost three million people live in poverty.

“It is unconscionable to pursue company tax cuts while refusing to raise the rate of Newstart and other allowances.”

ACOSS Chief Cassandra Goldie added: “If the company tax cuts are passed, and personal tax cuts are also given, it is inevitable that social security will be cut further, and we’ll all have to pay more or wait longer for essential services such as doctors’ visits, hospitals, aged care and education.”

“Genuine tax reform would close shelters and loopholes in the tax system which high income-earners and many companies have taken advantage of for years to minimise tax.

“We have a choice. We can pay more for services like hospital care, aged care and home care and continue to tolerate high levels of poverty and  homelessness, or close the revenue gap by making sure everyone pays their fair share – including the many companies and wealthy individuals who take advantage of tax avoidance mechanisms.”

The Government has different ideas, claiming the tax cuts would make businesses more profitable, meaning they would pay more tax, create more jobs and increase wages.

Finance Minister Mathias Cormann said if the tax cuts were not passed in full, Australia would lose investment and jobs, more people would become unemployed and wages would drop over time.

“Less profitable businesses would also pay less tax over time, meaning less revenue available to fund the important and necessary services of government including and in particular in health, education and welfare,” said Mr Cormann.

Labor and the Greens oppose the tax. The Government needs nine of 11 crossbenchers to back its proposed cuts. It already has One Nation in its corner, as well as Australian Conservatives’ Cory Bernardi, Liberal Democrat senator David Leyonhjelm, and independents Fraser Anning and Steve Martin.

What do you think of corporate tax cuts? Are they the answer? Do you fear that social services will foot the bill for the reduced tax money? Or will big business make good on the Government’s claims that it will inject funds back into the economy and solve all our economic problems?

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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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156 Comments

Total Comments: 156
  1. 0
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    I am strongly opposed to the tax cuts for the simple reason that the government itself has admitted that they will NOT generate economic growth.
    Goldman Sachs found that if companies distributed the value of the tax cut as profits or dividends to investors then 60% of the benefit would flow to offshore investors, 10% to domestic investors and around 30% to the Australian economy.
    All economists agree that the benefit of the tax cuts will be very small, yet the cost is horrendous, and with huge cuts happening everywhere else, we can’t afford it.
    Companies are already dodging their tax obligations, with many huge corporations paying NIL. How can cutting taxes of $0 benefit them, other than to possibly save a few dollars in fees to clever accountants?
    What we need to do is address the tax loopholes and increase overall tax revenue from the wealthy. Stop this nonsense hacking away at the incomes of struggling self-funded retirees who are already contributing some $30-40K a year to the taxman (but getting no credit for it!) and tax FAIRLY.

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      And BTW. Hansen hasn’t yet made up her mind. She said she was incorrectly quoted.

    • 0
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      Like you, I find it difficult to arrive at a sensible conclusion to the cutting of company tax. As you allude to, many of these large companies pay little or no company tax at the current time – so why cut what they are not paying.
      When will we get a Government that will address the problem, levy a flat tax rate for large companies, then retrospective down the chain, then the country will get a fair share of the wealth being generated by these large conglomerations. Raise the upper tax rate or better still, apply a flat tax rate, with a higher rate for the rich. No income tax returns, no tax deductions – KISS principle, less fat cats needed to oversee the system!!!
      More money for pensions and other social services.

    • 0
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      Absolutely right , the only winners are the CEO’s , overseas investors and high endersin lear jets etc who will splash the extra cash on imported luxury cars , Yachts , overseas business deduction trips
      No trickle down effect at all , just more trickle in their back pockets . How naive are these LNP sheep thinkers and Malcolms yes men , The Business Council of Australia never had Tony Abott’s ear but gave their support to Malcolm to stab him in the back . No one believes the BCA letter saying their members will pass it on

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      The main reason for the company tax cuts is to stop companies from going offshore to more favourable tax environments. Yes, I agree with those who argue that the loopholes that companies can take advantage of to pay little or no tax should be closed. I’d even go as far as to say that deliberate tax avoidance should result in jail sentences, since fines are paid by the companies and don’t really impact those who permit this to occur. However, unless the local environment is competitive with other environments, we’ll be left with only those businesses that absolutely have to be here, instead of attracting businesses that will bring in earnings from other places. Best no to cut off one’s nose to spite one’s face?

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      @WorldProphet, “The main reason for the company tax cuts is to stop companies from going offshore to more favourable tax environments.” This statement is more complicated than the misinformation touted by the government. Yes, the headline rate is different however you need to look at the overall taxation environment and you will find Australia’s effective corporate tax rate is well under 20%, for those companies that pay tax in this country. Consider whether a tax rate of 25% would entice companies away from countries like Ireland and Singapore. How likely is it to make companies that organise their affairs so they pay little or no tax in Australia to suddenly decide otherwise. All is not what it seems.

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      Hanson has already made up her mind and so has Hinch.

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      OGR, your comments are absolutely supported, except the bit about Hanson / One Nation – she is clearly trying to do a deal with the Liberals (asking for some weak / pathetic benefits, such as some apprenticeships, compared to the $65 Billion benefits for business).

      The only way any such tax cut cuts can be permitted is if:
      a. All Businesses MUST pay a MINIMUM TAX of 20% without any Deductions, or say 25% with ONLY LOCAL LABOUR, MATERIALS or INTEREST deductions). Note: In USA, the 21% rate Trump has got passed does not include State Taxes, and they also have a Minimum Tax system.
      b. We get Universal Pension for all Individuals at Age 65, subject only to 15 years Residence, with NO Assets, Income, Partner or any other moronic test (ideally also scrapping all special pensions for politicians).

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      All in Qld MUST write to Pauline immediately to STOP THIS Business Tax cuts, and provide the above suggestions which I think all might agree.

    • 0
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      Did that, George. I was out last night and came home tired but I think I heard the company tax cuts have been scrapped?

    • 0
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      Great, OGR, hope many others did that too – Pauline DID cave in.

      Also Victorians need to put pressure on Derryn Hinch – he is capable of standing up if he believes in something.

      Not scrapped, as the rich have too much to gain, merely postponed till after Easter – so all MUST keep the pressure on!

  2. 0
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    I do not believe that corporations will pay more to employees (at the low end of the scale), if they increase profits due to lower taxes. Many pay very little tax now.

    Retirees who hold shares in larger corporations might do OK as the companies will certainly increase dividends, rather than pay more to employees. Mad if they don’t!

    I am not surprised at this policy, as Liberal ideology is to reduce taxes, so that they can reduce services, as well as reduce welfare. That is the free enterprise approach – you get what you pay for. The majority voted for them, so suck it up. I’m surprised we don’t have to pay for police attendances at crimes, with this lot.

    Pity the people who through bad luck or bad circumstances or even bad genes, do not have the capacity to pay for necessary services. It looks to me like a policy of “Hurry up and die!!”

    Policies of greed, vs policies of compassion. Get used to it. Labor is only marginally better, and the Greens haven’t a clue. One Nation has no policy platform apart from anarchy, and there are no others of significance.

    On a brighter note, er….I can’t think of anything good right now….

    • 0
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      Janus – since you brought political issues up: why not abolish preferential voting, make it first past the post and to top it all make
      voting voluntary. Not many countries in the world left with compulsory voting. It certainly would free up the Senate for a start.

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      Voluntary voting?? That would get about 10% of older, thinking, rabid, or bribed Australians out of bed on voting day, and result in a biased result that leads into corruption, voter intimidation and vote rigging.

      Even though there is a fine for not voting, about 5% don’t vote. Don’t vote, don’t care, don’t have a say – typical Australian “she’ll be right mate!” approach. We are a lazy nation. I love it.

      “Free up the Senate”?? They are free to vote now, and we are all free to have a house of review, unless you would actually like to have a government that has no review, restriction, control or scrutiny. Sounds to me like you actually TRUST our governments.

      Sounds like a plan…might think a bit more on it though.

    • 0
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      Cowboy Jim, I agree with you 100%. This preferences nonsense is so wrong, I know this from experience in Tassie. And compulsory voting, yeah –very democratic !!! As is being fined for not voting ! And they have the nerve to say we follow the Westminster system, what a blatant lie.
      Do away with preferences and compulsory voting.

    • 0
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      Voting is not compulsory.

    • 0
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      Tell that to the Electoral Commission when they are sending out fine notices by the thousands. Of course it’s compulsory. No wonder you support tax cuts. You haven’t a clue about anything.

    • 0
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      I never vote and I never get a fine either. Yes I am on the electoral roll.

    • 0
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      My mother was dying in hospital and she still got a fine. I rang the AEC and they waived it, so not sure why you are exempt

    • 0
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      I’ve been threatened with fines 5 times – once when ill in hospital and three times when out of the state or country. The 5th time I had a one-month old baby and my partner had been called to an emergency so I waited for his return to go to the polling booth rather than take the children out in a wild storm. I reached the booth a full 10 minutes before closing time, but they shut the door in my face because the workers wanted to get home before the storm worsened. The excuses were all accepted, but they were certainly required.

      Sorry, OG, but once again it’s patently obvious you are telling huge porkies. Voting IS compulsory in Australia, and every Australian citizen knows it.

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      OG lost his marbles in addition to a lot of money he will lose in way of AEC fines. Maybe, OG can blame it on poor mental health?

    • 0
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      All I do is turn up or have someone turn up and cross my name off and put the blank paper in the ballet box. Done so for decades now.

      I got please explain for having my name crossed off at 3 polling places once but had voted early myself as I was overseas on polling day.

    • 0
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      I am fed up with these bleeding hearts from ACOSS and the like. Go to a place like Mildura, where there is plenty of seasonal work, and look who is doing it – back packers, while the local Centrelink office is full of fit young Aussies waiting on their Newstart approvals. This country needs a collective enema, and the do-gooders need a reality check. How do we compete with a company tax rate higher than all other comparable economies? Get real – even a three year old should know the answer to such a basic question!

    • 0
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      Big Al that can look quite deceptive. A family member volunteered to fix up the marketing for a winery and gin producer in the Swan Valley WA.
      All the seasonal workers were 415 visa holders on holiday putting in the 88 days so they could stay longer here and working for bed and board.

      I’m sure some of our kids would love a working holiday but unfortunately they are either working already or Centrelink won’t pay them if they go off to WA to work for accomodation only for a month or two.

      While employers can get away with not paying wages they will.

    • 0
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      I agree with your distain of ACOSS though. Most of the budget cuts that affected part pensions was caused by ACOSS wanting to slam savers and defined benefit pensioners.
      They do more harm than good in my opinion.

    • 0
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      Having walked in the shoes of the unemployed for a time, I can sympathize with many of them. Of course every society has a small percentage of lazy layabouts who won’t work. But the system makes it very hard for people who genuinely WANT work and struggle to find it. Firstly, who on Newstart can afford to travel looking for work – especially if they have a family? You find the money to go somewhere for an interview and get knocked back, you starve for a fortnight! You get a casual job for a short time, you lose so much of your benefit that you are worse off than if your didn’t take it. You take an unsatisfactory job that you can’t continue for long due to health issues or whatever and you are locked in during business hours and can’t look for anything more suitable.

      Employers take advantage of the unemployed, breaking workplace health and safety laws and underpaying, and you can’t report them because you are too scared their influence in the area will close doors for you everywhere. They are always believed over you. One I worked for broke every law in the book and the boss lady sat on the veranda sipping drinks and abusing employees. Nobody EVER investigated the frequent injuries among the poor casual workers who were sent to work there because they’d been unemployed for too long.
      Job agencies are instructed to view claims of physical health issues restricting capacity to do certain types of work as ”an excuse”, and to ignore issues of mental unsuitability.
      Then there’s the depression to cope with – that awful feeling of hopelessness, that no doubt comes across in an interview as disinterest when actually it’s total despair.
      I worked for 12 years in a job that put my life in grave danger every single day and I earned $16 a week more than the dole – $16 that was more than consumed in costs of travel to and from work, work clothing, union dues, and other incidental costs. I would have been better off financially on unemployment benefits. Gee, I wonder why people don’t want to take a totally unsatisfactory job!

      Eventually, I started a small home-based business and didn’t declare what I was doing. When the authorities caught up with me, after 6 months, I found a loophole in the legislation that allowed me to continue. I made a lot of people very angry and the loophole was closed, but it took 18 months, by which time I was earning enough to get by. I was never unemployed again. I taught myself new job skills on the job that I would never have been able to learn when unemployed, because people shunned me when I didn’t have a job. When I was struggling in a little business, making no money, everyone wanted to help.

      It’s so easy to be judgmental – and so hard to understand when you haven’t been there and done that. Sure, lots of people have become unemployed and succeeded in finding work. Lots have taken unsatisfactory work and climbed up successfully – like a certain politician who boasts. But you have to examine the person’s background, life experience and resulting psyche, social circle, family situation, and a lot of other factors most of us have no clue about before you can appreciate their capacity and struggle.

      Bottom line – our system fails those who struggle to find work. It’s a disaster! And none of those claiming to have answers have a clue why it’s failing or how to fix it, because they have no notion of what it feels like to have no hope of escaping the trap except by cheating. But it’s really, really easy for judgmental people to condemn others based on popular lies.

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      That’s why I now stay home as driving puts my life in grave danger too.

      OGR the idea is to learn the rules and play the game and not get caught.

    • 0
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      One of my relatives works in a big factory in Brisbane that employees hundreds of people. Most of the workers are Koreans or Kiwis. Apparently they only employ Australians in roles where they can’t get workers from overseas so there are very few Australians employed in their factories.

  3. 0
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    Optimistic tax models put the average Australian at being 0.1% better off under the proposed company tax cuts. And the good news is they’ll only have to wait 25 years for that tiny benefit to appear! Economist John Quiggin reports.
    Wow! 0.1% in 25 years time! That’s not great value for the billions it will cost!

    • 0
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      yes , we do pay tax on dividends and will lose 30 % of our Dividend income if Shorten gets in . He knows how it works to benefit the Union based Super funds and will exempt them from cancelling the excess rebate . Malcolm Turnbull is a disgrace no better than Shorten . Why is everyone silent on his Malcolms Cayman Island Tax haven ! he doesnt give a sh*t and will go along with a similar tax policy like Shortens tax grab to fund the black hole left after he gives tax cuts to huge oversea companies and shareholders The LNP are dumb

    • 0
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      @OGR, we agree. See it is possible 🙂

    • 0
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      Australia will collect more tax at 25% rate than the 30% rate and heaps more tax when they lower it to 15%.

    • 0
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      OG is right
      OGR is wrong

    • 0
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      OG is WRONG. We have a very favourable tax environment in Australia – far more favourable than the US AFTER their tax cuts, and far more favourable than many nations that have a nominally higher rate.
      Anyway, the argument is that tax cuts will flow on to wage rises. If record profits don’t, why would tax cuts? It’s a nonsense!

      And businesses don’t come here for the tax rate. They come here for the market opportunity. If they don’t want to pay taxes, good riddance. Someone else will fill the opportunity. Where there is a market, somebody will service it.

    • 0
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      Actually that is the point there is not enough profit in this country compared to elsewhere in the world so we are seen as a great place to dump stuff that the rest of the world doesn’t want. I certainly don’t want those companies coming here with their rubbish.

    • 0
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      What rot, OG. That’s just nonsense.

      As pointed out above, reduced taxes and higher company profits will mean LESS jobs as more technology is employed to replace labour. Less jobs means less tax revenue, more welfare, less spending, and that sets off a downward spiral. Far better to increase wages and pensions and generate spending that will stimulate more demand and therefore growth.

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      OGR that all falls down when people don’t have enough money to pay for the goods that technology produces.

    • 0
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      Which is precisely why this stupid LNP will crash the economy with their idiotic handouts, while continually slashing the incomes of all consumers to pay for their stupidity.

    • 0
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      OG, it boggles the mind how you can continue to argue until you eventually come full circle and prove your own argument 100% WRONG. You’ve just confirmed that company tax cuts will be a disaster. They will result in more robots producing goods nobody can afford to pay because everyone’s income will be cut to fund the damaging tax cuts.

    • 0
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      No company tax cuts are an awesome move. If everyone was like me and lived a minimalist lifestyle most companies would have shut up shop long ago.

    • 0
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      There is plenty of money. You only have to visit the Shopping Centres to see the consumption going on and even the poor are covered in tattoos that indicate they have plenty of money for discretionary spending.

      Let’s do the tax cuts and see what happens.

      We might get price drops which would be great.

      I’m with OG right now and the minimalistic lifestyle.
      It’s very stress free.

    • 0
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      There is money in the hands of some. We also have double the rate of aged poverty of any other nation in the developed world. The problem is inequality, and inequality will increase with company tax cuts, because all benefit flows to the more affluent. Inequality leads, inevitably, to economic stagnation, and social unrest. We’ve seen it in the US. We’ve seen it in the UK. It’s coming to Australia very soon, especially if the LNP has it’s way on this issue.

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      Of course people think they are in poverty as they want the taxpayer to not only pay for the basics of life but all the luxuries as well. That’s where the inequity comes in.

  4. 0
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    But if Shorten has his way, it won’t be pensioners suffering. It will be people who are struggling to be self-funded and will be forced onto them pension with massive cuts to their income. He does not seem to understand that these people DO pay tax. They contribute some $30-40K a year to the taxman by being self-funded, and since it’s getting too hard for them, many will decide to reduce their assets and claim a pension rather than persist in the face of this constant unfair attack. Those who continue to be self-funded will cut their expenditure heavily, which means reduced profits, more job losses and reduced tax revenue, and continues in a vicious cycle as flow-on effects are felt.
    Sadly, Janus is right. Companies won’t increase wages. They have enjoyed record profit growth over the past year or two, and wage increases were at record lows. There is ample proof that increased profits DO NOT flow on to workers, so why does the government persist with the untruthful argument.

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      There is no motivation for companies to increase wages in the absence of skill shortage or regulation. The kicker is the higher wages go the more cost effective replacing workers with technology becomes. The axiom about being careful what you wish for is worth keeping in mind.

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      Yes, Farside. Companies will replace workers with technology wherever they can, and tax cuts will enable to them to do more of that. More job losses. Less jobs means less spending means less jobs and tax means less jobs. Far better to spend on increasing wages and pensions so spending increases and drives growth, but that would be too sensible, I guess.

    • 0
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      If people can’t live on the OAP today then they are living well beyond their means. It is for the basics of life not luxuries as well.

      Increased wages only leads to increased price due to their inflationary effect on the economy. We have less jobs because we have less consumption for goods and services.

      Companies replaces workers with technology because it simply does a better job and in some cases may be a bit cheaper. That said I loathe those automated phone systems but they have been proved to do the job better than a person does.

      All the jobs that need doing people don’t want to do today. It us very easy to get a cleaning or gardening job but it seems they are just too harder work for people today.

      There is plenty of money around. I went shopping yesterday as I thought it would be quiet. It seemed busier than usual to me. Onre tome shops were only busy on oay day now it is every day.

    • 0
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      Says the lying cheating rorter who has an income of around twice the pension and a multi-million dollar house, and grandkids who owe him and will no doubt shell out for anything he needs and can’t afford.

      Put a sock in it, cheat. You have no idea about hardship.

    • 0
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      I am actually thinking of doing the same as BigBear. I buy a house worth millions and then we both collect the single rate OAP as it only gives us more money but higher asset limits as well.

  5. 0
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    A pension is not welfare.
    NO ASSET TEST FOR A PENSION EVERV AGAIN!
    For your retirement do you really look forward and want 100++ visits to/from Centrelink and be part of 3 million waiting queues and lost calls?
    Do some of you like being part of the abuse of the elderly? If so get your head examined for saw dust.
    Call your MP (yes the very same one who lets this Centrelink abuse happen at taxpayers’ expense) and tell them they will lose their job unless all asset tests for a pension are dropped
    Most economist say we will save taxpayers money by dropping asset testing because of the massive overheads cost in running Centrelink and the 10,000 conflicting rules
    NO ASSET TEST FOR A PENSION EVER AGAIN!
    Call your MP (yes the very same one who lets this Centrelink abuse happen at taxpayers’ expense) and tell them they will lose their job unless all asset tests for a pension are dropped
    NO ASSET TEST FOR A PENSION EVER AGAIN!

    • 0
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      You are right, GrayComputing, as far as cost savings are concerned but what to do about all these public servants operating C/Link presently? Would that not up the unemployment rate? So all the savings would be spent on dole benefits and we would be back to Square One.

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      @GrayComputing, don’t hold your breath waiting for changes to the assets test even if it is in caps, colour and repeated. Assets test is not going away any time soon and the pension will be treated as welfare in the absence of universal basic income.

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      OAP is welfare and I am proud to be on welfare. The asset test is certainly not going away if anything it will be tightened further. I am so grateful I was astute enough to spend and dispose of my wealth as those who kept it are now far worse off than me. I wish everyone would do what I have done so they reap the benefits of planning for retirement. Let’s hope Life Choices teach this in their boot camp.

    • 0
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      Yes BigBear, we know BigBear the mutli-millionaire is very happy cheating the system to steal from the taxpayer, and very well off drawing more income from a combination of pension and investments than most SFRs can achieve.

      Are we supposed to applaud you for that? Frankly, I think you are the lowest of the low – thoroughly DISGUSTING.

      And now you hope everyone who is fortunate is taught how to wreck the system so there is nothing for the genuinely needy. What SCUM!

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      OGR why don’t you just bite the bullet and learn the rules and play the game instead of whinging about those who benefit by doing so?

      I too wish more people planned their retirement like VeryCaringBigBear did and what he has done is nothing more than playing the game by the rules to his benefit. Much better than doing nothing and just whinging about others winning the OAP game.

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      Because if everyone does it, OG, the nation is stuffed. I know what real hardship is, and I don’t want to see it inflicted on people. But I guess it’s time to give up. Those who will suffer most are their own worst enemies – greedy, selfish, consumed with envy, and just plain STUPID.

  6. 0
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    ANY company worth its salt hires and fires staff depending on the profit margin that employee will bring to the company.
    A decision is made to hire IF that employee can contribute to the bottom line, more than it costs TO EMPLOY THEM.
    Very simple.
    Reducing tax will increase profits – no argument there. But that is not an incentive to employ more staff. Yes, a company can afford to employ more people but that will decrease the bottom line, so why would they?

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    This entire current liberal government has about as much integrity as the entire Australian cricket team. How long do we have to wait for an election or worse, maybe Abbot will be back.

  8. 0
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    The corporate tax rate should be cut to 15% to make us more competitive with the rest of the world. We would get a lot more tax collected at 15% than we do at 30% as it would not be worth it for companies to shift profits overseas.

    Great move but it needs to be cut further to 15%.

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      Thought about that when seeing a 5-pack of noodles made in Singapore at the supermarket for $1. Pack says 100% Australian wheat. Singapore has similar wages to ours but their corporate tax is about half. So how can we be competitive with a rate of 30%? Do we want to send all our companies offshore as well and have our groceries offered by offshore supermarkets like Aldi (no share holders, family-owned and taxed in Germany)?

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      Maybe we should abolish corporate tax altogether. Would we then not collect even more tax?
      If the company tax rate was 1%, they would still figure out how to avoid paying OG.

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      @Cowboy, Aldi not the best example for your proposition; according to the ATO Aldi Foods pays a similar level of tax as Wesfarmers and Woolworths. Aldi is a wholly owned subsidiary of Hofer KG (Austria).

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      OG, nothing wrong with cutting the headline rate to 15% so long as reform the rest of the tax act so the effective tax rate and the headline rate were in sync. I’m sure you are aware a low rate alone is not the the only reason companies organise their affairs in a particular way.

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      Companies pay little tax because it is cheaper to pay expensive tax accountants to show them how to pay little of no tax. At some point those tax experts will cost more than the tax saved which will mean an actual loss. No wants to have an actual loss.

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      Theo1943 makes sense! Of course companies and the rich will avoid tax no matter what the rate. And our REAL company rate is about 17% now – much LOWER than most other developed countries.

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      Companies will do business here as long as consumers either can afford the prices or will borrow to consume. When that stops they will be gone in a flash. Transfer pricing is a strategy used regardless of the tax rates.

      Companies will always maximise profit anyway they can and pack up shop when the money runs out.

      We’d better hope it doesn’t because we really don’t make anything much anymore and if those ships stop coming the shelves will be very very empty. Communism isn’t the only ideology that can do that. Capitalism in a death spiral is pretty nasty and the next time comes with current globalisation features to add to the misery.

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    Show the evidence that the outcome of “tax cuts would pay more tax, create more jobs and increase wages and that if the tax cuts were not passed in full, Australia would lose investment and jobs, more people would become unemployed and wages would drop over time”.

    Come on, prove it with numerical models, not words !

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      The money has to go somewhere even it is commission for a salesman to sell someone a roller.

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      Where did the record profits go then? Straight into the bank accounts of senior executives and directors, as will any tax cut.

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      No the record profits have been used to retire debt in companies and make their bottom line look better.

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      “Record Profits” are after (1) Commission paid to salespeople (2) after payment of wages (3) after retirement of debts.(4) after corporate tax liability.
      Corporate Tax cuts, will not increase jobs, will not increase capitol expenditure in a very uncertain economy. The “clutching of the straws” hope, that they will , is an old fashion notion that expired some 30 years ago.
      If you increase the share of one economic sector in the realm of the economic pie, then another sector/s must suffer a downfall. That’s micro-economic reality.

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      The money saved from tax cuts is not going to just evaporate into thin air as it has to go some where and anywhere will help our economy.

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      It will go in the pockets of the filthy rich, just like in the UK. And a lot will end up in untaxed accounts in the Caymans, like MT’s riches – which is why the LNP WANT to cut taxes. Their mates are the ones holding those bank accounts and greedy for more.

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    These idiots should shut the hell up and stop spreading lies
    How about we start taxing these useless outfits – parasites all of them

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      Raphael I hope you’re not talking about the salvos. When I was a young man the Salvos would come around asking for donations in the pub. Hard men a lot of them mostly construction and heavy industry workers but they all had a couple of bucks for the salvos. The Salvos do good work in the community. They may be wrong in your estimation but it will be with good intentions.

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