Hump Day Post
I received an email last week from GetUp for which I am a subscriber, asking to me to make a submission to the Treasury in regards to a fairer budget. It astounds me how one side of politics discusses savings and how we need to make them and the so called other side talks about how mean and nasty their opponents are like we are on a episode of Home and Away or Neighbours,I haven’t watched these programmes since I was a teenager, but I can’t imagine the storylines changing.
Discussion on revenue growth is obviously needed, Australia does not have the same population in figures or demographic we did some years ago and I remember when I was studying business in the nineties we were saying, you can’t rely on Australia’s resources alone to generate tax wealth, so where is the intelligence gone, perhaps it has been replaced with a ideology that lacks empathy.
Why do I say that? Because it is so obvious, as a business person there is no stopping revenue growth, you always aim for it. Have a read of my email to the Treasury below.
Department of Treasury,
Recommendations for a fairer budget.
1.Superannuation tax concessions are costing the government about $35 billion over the forward estimates — almost the whole size of the Budget deficit. But it is
well-established that those concessions benefit the richest over the rest. Why not restrict super tax concessions for the wealthy in the 2015 Budget and save billions?
For example, if the government removed the concessions for the wealthiest 10% of income earners, they would save about $15 billion.
2.The government wastes about $10 billion a year on subsidies and tax breaks for polluting industries. For example, the rebate on diesel fuel for the mining industry
means big-end polluters pays a fraction of what ordinary Australians do for their diesel fuel. Cutting this subsidy alone would save the government $2.4 billion (and
every taxpayer $182 a year).
3.According to the Grattan Institute, if the Government quarantined negative gearing losses, initially it would save around $4 billion per year, and $2 billion each
year after that. This would also have effect of making housing more affordable for the next generation, by putting downward pressure on property prices
4.There’s a whole suite of loopholes the Treasurer has chosen to keep open, that’s costing the Budget bottom-line about $1 billion a year. For example, The Treasurer
recently abandoned an important anti-avoidance measure (by allowing deductions under section 25(90) of the Income Tax Assessment Act) in his Mid-Year Economic and
Fiscal Outlook, which was projected to recover $600 million alone.
Advance Australia Fair
Well hopes this works and has some effect, no doubt with the help of others. Having said all of this, there is a glimmer of hope as we communicate more effectively and more of us create or at least decide our own media which of course dictates policy. I would rather place my faith in a collective of various bloggers as opposed to political group thinkers.
Take care and keep the faith 🙂
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