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1 VOTERS OPINION on AUSTRALIAN POLITICS
1 VOTER RESEARCHES LIBERALS - COALITION
Page 6 of 9
Australians pay at least 125 different taxes each year-
99 are levied by the Australian government (including 67 agricultural levies),
25 by the States
1 (council rates) by local government
TAXABLE INCOME INDIVIDUALS 2014 – 2015 - graph
Around 11,000 Australians earned more than $1 million in 2014-15 and collectively paid $11.1 billion in tax.
Quote”Dividends to shareholders increased by around a third over the past year, while wages rose 2.3 per cent
The Reserve Bank has called for greater productivity growth to boost wages
Business groups say higher wage rises could lead to fewer jobs. ” End Quote
1 VOTER ON LIBERALS - COMMENT 8- Seeing these two graphs side by side for comparison I am surprised that company tax is not a higher component of government income. I don't mean companies that are currently paying, paying more. I mean the companies that are avoiding tax paying their share. Company profits are rising, wages are static and the cost of living is rising. I am surprised that Hockey's speech states that disposable income has risen! The following information stunned me!
ONE-THIRD OF LARGE AUSTRALIAN COMPANIES PAID NO TAX, ATO DATA SHOW
ABC.NET 14 Dec 2018 By Nassim Khadem, Jackson Gothe-Snape and Peter Ryan
ONE-THIRD OF LARGE AUSTRALIAN COMPANIES PAID NO TAX, ATO DATA SHOWS
1 VOTER NOTE– This site has a handy data search facility where you can see the ATO’s tax data on 2,109 companies. Be prepared to be amazed, not in a good way!
AUSTRALIAN TAXATION OFFICE
Quote “Of the 2,109 entities monitored by the ATO, two-thirds paid at least some company tax. (AAP: Tom Compagnoni)
About one-third of large companies have failed to pay tax, even though they made a gross profit, but the Tax Office says most have good reasons, according to the latest corporate tax transparency report released today.
Of the 2,109 entities monitored by the ATO in data covering 2016-17, 66 per cent paid tax although the remainder did not as they claimed tax losses and concessions that can go back several years.
"While the majority of entities in the corporate transparency population made profits and paid tax in relation to the 2016-17 year, some do not pay tax," the transparency report said.
"We look to understand the reason for tax losses or nil tax payable. Sensitivity to economic conditions, reinvestment back into the business, distribution of profits to other entities within the broader group, tax deductions and tax offsets can all affect the amount of taxable income and tax payable."
The ATO said total corporate income tax collected in the period lifted by 19 per cent to $45.7 billion, which is $7.5 billion up on the prior period, in part because of an additional 68 entities being taxed.
ATO commissioner Jeremy Hirschhorn said the crackdown on multinational tax avoidance had begun to emerge in the latest data as companies restructure their tax affairs to stay within the law.
Despite the improved tax revenue, Mr Hirschhorn said the ATO would not hold back in ensuring corporations pay their fair share of tax.
"While economic conditions may change from year to year, the data shows the ATO has strong and continuous scrutiny on Australia's largest taxpayers, as the community would expect," Mr Hirschhorn said.
"There will be no lessening of the ATO's commitment to ensuring large corporate taxpayers are paying the correct amount of tax.
INCREASED TAKE IN MINING, ENERGY
The transparency report covers 1,721 Australian and foreign owned companies with an income of $100 million or more plus 388 Australian private companies making in excess of $200 million.
The increased tax take was driven by the mining, energy and water industries, reflecting a broad recovery in commodity prices.
Australian public entities contributed $6.4 billion to the increase, followed by $626 million from foreign-owned companies, while Australian private entities contributed $429 million.
The report noted that about 81 per cent of Australian private entities are linked to groups controlled by "wealthy individuals, including high wealth individuals", with 11,000 linked companies, trusts, partnerships and superannuation funds.
CALLS TO CLOSE TAX LOOPHOLES
Treasurer Josh Frydenberg said its budget funding for the Tax Avoidance Taskforce targeting multinationals had "enabled the ATO to expand a program that ensures a faster and more intensive approach to tax compliance for the largest 1,000 public and multinational groups." End Quote
1 VOTER ON LIBERALS- COMMENT 9: WHAT A DISGRACE!
Obviously, it’s a delicate balancing act for governments to provide enough ‘incentives’ to make Australia an attractive economy to invest in, and these companies provide jobs for Australians. However, where’s the ‘happy medium’?
Use the search facility on the page I directed you to, see for yourself.
Tax ‘loopholes’ and alleged legitimate deductions for the cost of doing business are outrageously lenient . Where is the fairness in this? Why has corrective legislation taken successive governments so long? Is the voting public so gullible to believe that government efforts to make successful companies pay their share of taxes, is a ‘fair dinkum’ effort? You would have to be kidding. Huge companies paying little / no tax! There's tax breaks for successful companies as a motivation and there's ridiculous breaks for obscenely profitable companies. Paying zero tax is unacceptable.
And what of the companies that owe tax/ pay less than owed? What is happening here? Why hasn't the government pursued them with a vengeance.
The Liberals claims on this topic are pure fiction, the data speaks for itself.
THE LIBERALS ON -BUDGET EXPENDITURE, TAXATION
BUDGET SPEECH TREASURER SCOTT MORRISON 2018
Quote “Real expenditure growth remains below two per cent, the most restrained of any Government in more than fifty years
This will see Government spending fall to 24.7 per cent of GDP, below the 30 year average at 24.8 per cent over the forward estimates.
We are also keeping taxes under our policy speed limit of 23.9 per cent of GDP set out in our fiscal strategy.
Higher taxes to chase higher spending never ends well. Australians always end up paying for it one way or another.
With the budget returning to balance we will start paying down debt.
Net debt will now peak at 18.6 per cent of GDP in 2017-18 and will fall by around $30 billion over the forward estimates. Over the medium-term net debt will fall to 3.8 per cent of GDP by 2028-29.
Gross debt will peak during 2019-20 at less than 30 per cent of GDP. Over the medium-term gross debt will be $126 billion less in 2027-28 than was estimated at the mid-year update in December.
It has been a long road back from where we started in 2013. We are close to our destination. We must stick to the plan.” End Quote
Labor on tax:
JOE HOCKEY’S (LIBERAL) SPEECH TO THE SYDNEY INSTITUTE. 11/6/2014
Quote” Criticism of our strategy has been political in nature and has drifted to 1970s class warfare lines, claiming the Budget is “unfair’ or that the “rich don’t contribute enough”.
Whilst income tax is by far our largest form of revenue:
ten per cent of the population pays nearly two thirds of all income tax.
two per cent of taxpayers pay more than a quarter of all income tax.
Maybe these taxpayers would argue that the tax system is already unfair.
Company tax is our second largest source of revenue.
Less than one per cent of companies pay 62 per cent of all company tax.
12 companies in Australia pay one third of all company tax.
Hockey said: “The truth is governments have never been able to achieve equality of outcomes. Some governments try but they always fail. Only in a closed economy, based on old style socialism, can a government hope to deliver uniform equality of outcomes.
We have moved on… As a result, Government can only hope to provide equality of opportunity. Even then, as each day passes, forces such as personal empowerment and personal choice, reduce our capacity to equalise opportunity.”
Hockey called for realism about the role of government: “In our view it is the responsibility of government to provide equality of opportunity with a fair and comprehensive support system for those who are most vulnerable.
After that it is up to individuals in the community to accept personal responsibility for their lives and their destiny.”
Official data shows-
average real household disposable income has gone from $540 per week in 1994 to over $820 per week now –
That means the average Australian household is almost $290 per week better off today in real terms than they were around two decades ago.
And this growth has been broadly based across society. Household wellbeing across the community has grown significantly in the last two decades.
And while much focus has been on the “rich getting richer”, the more accurate story is the fact that everyone is getting richer as a result of economic development.
...based on the premise that it is fair to expect those who have the capacity to pay, should accept more personal responsibility for their cost of living, the cost of raising their children, their health services and their education.
It is nonsensical for government to continue to spend money at existing levels with the knowledge that this spending will not be sustainable and that in the years to come we will not be able to adequately assist those in genuine need.
This is unfair to those who most need our help and unfair to future generations who must pay the bill.
And it is unfair to keep a system intact that is clearly not encouraging participation and personal responsibility.
Our welfare system is unsustainable in its current form and it is not well targeted to those who really need our assistance.
The Federal Government will spend $146 billion next financial year on welfare. This is 35% of the Federal Budget.
We spend more on welfare than we spend on any other single policy area including health, education or defence.
Payments are too broadly available to too many people. As a result, less is available for those most in need.
At the moment over half of Australian households receive a taxpayer funded payment from the government.
According to the OECD Household Income Survey, Australians in the lowest 20% of income had the highest reliance on Government for income of any country in the world.
We must recognise that this spending comes out of the pockets of someone. Either it comes out of the pocket of today’s taxpayers, or the pocket of tomorrow’s taxpayers who will repay this debt along with the interest bill.
This year the Australian government will spend on average over $6,000 on welfare for every man, woman and child in the country.
Given that only around 45 per cent of the population pays income tax, the average taxpayer must pay more than twice this amount in tax to fund welfare expenditure. “End Quote
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