Never met anyone who didn't enjoy building or crafting products, in this era, the key to helping the poor is to encourage patience and local shopping.

Well, perhaps I've just had another screw loosen up on me, but I agree with Everald's list of the real waste of money that is going on, while our mongrel politicians attack the most vulunerable to cover their own shonky practices. I would add foreign aid to the list, along with NGOs, "charities" and quangos for retired politicians and judges. Throw in nannyisms about giving up smoking etc, too. It all comes back to a political class intent on feathering its own nest at public expense. To rip us off, the politicians have to licence their backers to rip us off, too.

We really do need to do something about our political trash before what used to be called 'extreme prejudice' becomes necessary

There is no fundemental right to an income you didn't work for if you have the physical ability to do so. Anyone capable of working should do so if they want to receive government support, which is tax payers support. For those who say there are no jobs, well, there is always plenty of help needed in places like nursing homes, child care centres, hospitals, local shires etc. hell, my little local town could use half a dozen people just picking up rubbish around town every day.
And forcing businesses who have run at a loss to pay tax is a sure fire way to drive small business out of the market, thus creating even more unemployment.
Take away the backpackers and people on 457 visas and there would be a lot more work available. The problem is, many Australians feel too entitled to have to do that work.
One way to save money and benefit society is to stop paying unemployable single women to have children, most of whom grow up to be non productive citizens anyway. Based on government statistics and studies, these children of uneducated single mothers are the bulk of our prisoners and recipients of welfare.
Instead of punishing hard working people lets try and convert multigenerational welfare recipients into productive members of the community.

Yes Everald, and with the exception of the claimed state sanctioned racism, not much here to disagree or take issue with. And that which you've highlighted, only possible, because legislators are invariably quarantined from the consequences of all their decisions! Imagine their wailing if their post politics pensions were limited to two multiples of the age pension? And if adequate for the folk who sacrificed to build this nation, more so, doubled for folk who've sold it down the river of no return, or wasted our finite funds simply to buy votes? Impossible dreams aside, the destiny of demography impacts us all! But particularly those asked by the rule makers to carry an ever increasing, massively unfair load!

And no not the indolent idle rich or those able to so structure their affairs to avoid tax or minimize it to just 15% of their taxable income? Then demand they receive non means tested public health, or their kids receive taxpayer funded education? As a right, given they also pay tax? Hopefully, occasionally? And bellow like wounded bulls if their "servants" don't leap to follow VIP instructions. And we know they're VIP's, given the size of their election donations?

Non essential state governments cost we taxpayers some 70 billion plus per and just for their right to exist! Moreover, nothing they do or are responsible for, couldn't be done better at significantly less cost, by a combination of direct funding coupled to regional autonomy! With the little left easily managed by efficient rationed councils and a downsized Fed! The "wasted" 70 billions per redirected into nation building infrastructure!

If management teaches just one thing? It teaches, there's always a better way! TBC.
Alan B.

A minor detail not mentioned in the article is that in 2015-16 Commonwealth spending on social security and welfare is budgeted at $158.6 billion or roughly 35 per cent of Australian government expenses by sector. This is projected to rise to $191.8 billion or 37.5 per cent of expenditures by 2019-20.

To argue that "the cost of welfare is not a major element among the issues that we face" is simply inconsistent with the facts, particularly given that Australia is running a roaring budget deficit to facilitate current levels of outlays. Furthermore, welfare spending is also on a strong upward trajectory because of our ageing population and increasing numbers on the Age Pension.

Re:
" Australia can finance basic income by scrapping Income Tax totally along with all its corrupt deductions and replacing it with a Revenue Tax which everyone will pay on all their earnings above the basic income even if they are operating at a loss. This will catch all the multi nationals before they syphon taxable funds offshore. "

Scrap income tax ?
Flat rate of tax (suggest a tax rate )paid by everybody , companies included. Perhaps you would set a fair tax rate of 50% ?

Remember that the bulk of government revenue is from personal income taxation.
The poor will always get the rough end of the stick from the government wanting to balance the budget on the backs of smokers, drinkers and drivers ... high excise taxes.

On top of welfare spending how are we Going to fund Defence, The NDIS , health, the NBN, education, etc etc.

Invest in Australia ?

You have got to be joking?

Perhaps we should focus less on people getting something for nothing and ensure we get a return for our hard earned.
Druggies should get free drugs dependant on birth control so reducing their numbers and costs. Big criminal costs reduced and less drones produced.
Community assistance required but given proper respect for people cleaning up our towns and bush and helping the aged etc.
If we paid more "Welfare" it would be spent immediately which would rev up the economy.
We are stuck with these problems but the reluctance to address them is startling!

The destiny of demography compels real not Clayton's tax reform! That tax reform will return equity and fairness! Not an unreasonable directive for our alleged representatives surely? and if simplified to the point of genuine transparency! Avoidance made virtually impossible? With an upside of the complete negation of tax compliance costs, currently ripping an averaged reported 7% from the averaged bottom line?

The least complex or avoidable, being an expenditure tax taken as money exists bank accounts? And in a fee free electronic transferred electronically overnight to the ATO, (the price of an approved banking licence) that no longer needs costly time consuming reconciliation before being available to consolidated revenue!

Moreover, able to be microscopically adjusted up or down, region by region if required, to alone control any and all inflation or stagnation!

I would opt for an initial variable rate of 15-18% would be, and allowing for the return of former tax compliance costs, back to the average bottom line; an effective maximum (adjusted) 11% tax impost?

And enough revenue to completely eliminate any and all deficits for all time, with the "reclaimed waste", creating economy growing income earning infrastructure and a much, much bigger economic pie and resultant ever increasing tax revenue or gradually reduced tax imposts, maybe all the way down to 5%!?

After that and given intelligent leadership, more enlightened energy and water policies, more than maximize the gains!

There's always a better way for genuinely independent thinkers and leaders!
Alan B.

Everald Compton, well done.
As pointed out though, the welfare budget is towards $200bn pa.
This I would suggest, has been exacerbated by a domestic economy which is unsustainably overheated by Government policy, supporting the wealthy for profit end, and patching up the damage to the poorer end with an array of welfare payments.

If living in Australia was anywhere near affordably possible without a welfare dependence, it would be universally and willingly accepted. A good start would be a designed Government policy which gave all young families a genuine start in owning their own homes.
This would be morale boosting and inclusive. Not as it is, demoralising and exclusive!

Priority must be given to Australian citizens in the job market. Instead, Goverment policy has been used as a tool against its citizens, giving licence to abuse visa constraints to business, with a direct intention of reducing wages, and adding to the welfare burden.

If people are given encouragement and opportunity to be as self supporting as possible, that will happen.

Alan B.

Yep to that, but changes to tax regimes does not address welfare dependency.
That is a structural economic problem!

An unavoidable expenditure tax, taken as a stand alone and the only tax, would do a number of things?

One of which would be the return of equity and fairness, the end of any and all bracket creep!

And end the systemic avoidance by our biggest avoiders, who need to use our banking system to repatriate currently non-taxed profits/divert taxable income?

One of the ultra-sharp practices that this ultra-simple unavoidable measure would also eliminate, is the same sum of money chasing its tail through several subsidiaries, in order to create ghost or phantom money trails/accounts/expenditure, to fool the A.T.O., or money stumping financiers?

It would make a nonsense of transferring money to tax havens, given no tax would be avoided and the fee and charges applied by the compliant state would still apply! Meaning only numskulls would choose this route!

And the very reason on both counts for the predicted risible confected outrage! By the pigs at this particular trough, suddenly having their endless gravy train removed or dismantled!?

And you won't have to wait long for all sorts of spurious claims to emerge! Like that's a turnover tax that might kill business etc/etc?

Even though the actual effect, would be a much less tax impost on any and all well managed and viable business! But not over-valued over-leveraged, mismanaged ones! That day has gone!

I'd druther a return to co-ops and supporting floor prices, than allow this viable family farm destroying risible rubbish to continue!

I've seen enough farm suicides and enough sold up farm enterprises for two lifetimes! Support strategies through drought assistance etc should come as grants/drought proofing and supporting welfare, rather than debt and bankers/auctioneers/debt laden foreign investors, waxing fat on other folk's misery/ill-fortune!

It really is time for change we can all believe and unite behind, as one nation!
Alan B.

The authors list
CTC. Yes, they do get away with not paying as much tax as perhaps they should, however, if one taxes into account the revenue they generate, the numbers are not so bad. Also remember they are working in an environment that is ridiculously over governed and ridiculously expensive.

NG. Not one opponent of NG can answer this simple question, Where will the renters live? Perhaps you can.

DA. The generators are only supplying to the demand. Tax the user and you will see consumption plummet.

Defence, agree.

Super, not so sure.

Public service, spot on.

Over governed, most definitely.

Last one, the libs are dealing with a mess they didn’t create and NO ONE should be allowed in to this country through the back door. NO ONE!

In a future where more and more jobs are gobbled up by unstoppable steamrolling automation Not everyone will be able to find work!

Even trucks, trains, tractors, trams and taxis could become completely autonomous and only need to stop for regular routine maintenance! Robotic lawn mowers, will roll-out even if it's too hot for you!

And when the lawn is a bowling green, roll back to the recharging station to top up the battery!? Ditto vacuum cleaners and other household aids?

With little enough left for the unskilled to rely on?

Only those kids with good science and maths being able to count on employment?

Yet the economy, no matter how automated or efficient, will need cashed up consumers to survive!

And could mean the only choice is a basic, after tax, survival income for all, with that and anything earned over and above a universal stipend, taxable income?

Yes, that will incur some essentially unavoidable churning! But better than the tax avoidance that would otherwise occur, if some income streams were excluded for any reason!

The rest requires a rational approach to affordable housing and the elimination of the profit demanding middleman! Given eliminating this element and doable, could virtually halve the cost of living/essential economy sustaining consumption!

If one of the most successful entrepreneurs on the planet, the CEO of Tesla Motors, understands and implements this maxim? Then so also should those allegedly charged with effectively managing OUR economy!
Alan B.

Alan B, sorry for my ignorance but I cannot understand how this tax you are describing will work?
Could you elaborate? I am not looking to argue against it but understand and support.

I'm all for the universal basic income. The part I don't get is the proposal to give it to everyone regardless of their income. That seems just plain stupid to me.

My thoughts are that it should work from a base of, say, $30,000 p.a. indexed. Anyone who earns less than that is paid a monthly amount that meets the shortfall. This would be based on the previous year's assessable income according to each person's tax return. Recipients would be able to earn another, say, $20,000 p.a. before it affects their UBI - giving a maximum income of UBS + employment earnings = $50,000. This would deter people from falling into the 'what's the point of working if it's deducted from my UBS?' trap.

This would negate the massive administrative waste that is presently spent on policing the worthiness of a person's right to welfare assistance or all the administrative detective work involved in determining if someone is ripping off the system (to catch the 2-3% who actually do). By making everyone eligible on the same basis - students, homemakers, carers, disabled, unemployed, over 65s - it would eliminate all the petty, messy administrative categories that presently apply.

It would also do away with the lucrative rort of privately contracted HR firms receiving exhorbitant fees to 'interview' recipients on a weekly,fortnightly or whatever basis to assess the person's 'employability' and/or willingness to work.

As for those who decide to not work at all and just live on $30,000 a year and not seek employment - well, what's wrong with that? They would be freeing up jobs for those who actively seek to earn more than $30,000 a year. Also, people who want to pursue a non-workforce lifestyle - domestic care, creative pursuits or volunteerism - will be free to do so. Who knows? There could be a massive outpouring of artists, writers, inventors, entrepreneurs and such, who till now have had to make the unhappy choice of pursuing their dreams or sleeping under a bridge.

Welfare costs in 2020 are estimated at $220bln, and we can't even break even in our budget.
No it's not a problem at all you goose.
Didn't bother reading any more after the first few sentences...

"Universal basic income"! Is that tomfoolery still on someone's agenda? To my knowledge, there is no where in the world that such a warped idea has ever been practised, nor any indication that it ever will be. Perhaps the PNG cargo cult was the closest thing to it.

It looks like the socialists are dismayed at how resilient democracy really is, & how long it is taking t kill it off with the thousand of cuts they have so far inflicted on it.

If they could just get this little lot up they would have the western word bankrupt in no time. All those would be bludgers who like a little more money than the dole, would come pouring out of the woodwork. The beaches, clubs & pubs would be overrun with the rush. Of course, anyone left working for a living would be quick to demand much higher wages.

I guess it would get rid of tens of thousands on the taxpayer payroll, as the money ran out, but hey, they could then get that 30,000 handout couldn’t they? Pigs flying all over the place too.

Everald's little joke for the week.

Never met anyone who didn't enjoy building or crafting products, in this era, the key to helping the poor is to encourage patience and local shopping.

"Encourage patience and local shopping". what the hell is that supposed to achieve?

The only thing warped about welfare is this.

The knowledge that govt can and should be creating money out of thin air just like banks do in order to provide it self with the money it needs to provide all that a society needs is spreading far too slowly.

There is absolutely no reason at all why govt cannot provide all pensioners with an income ranging 2-3 times present rates and up to average weekly earnings based on an agreed illegibility criteria.

Instaed of jumping up and down screaming how this cant be done, read this: The Remarkable Model Of The Commonwealth Bank Of Australia by Ellen Brown.

Lets make no mistake about welfare, all govts and all main political parties in Australia believe in welfare because none of them have ever been know to criticize corporate welfare.

Contrast this with the daily media bashing of the unemployed. Lets also clearly understand that the anti dole views being grown into the public consciousness is a form of mind control because the anti dole views that many people hold are not their own but those of the controllers which have been put into their heads by the controller via media.

How many people reading this have ever heard of corporate welfare? How many of them know how much money is spent of corporate welfare each year.

I bet most have never heard of corporate welfare because that nice lady on the TV has not told them about it.

The smart way to keep people passive and obedient is to strictly limit the spectrum of acceptable opinion but allow a very lively debate within that spectrum. – Noam Chomsky

The universal basic income is called New Start or the dole.

Referendumdrivensociety

Agree on all points. There are so many amongst us who, by virtue of their own righteous selfishness or being brainwashed from birth by a user-pays cultural narrative, are in total denial that society is a collective community. In the western capitalist democracies, the sovereign wealth fund is primarily viewed as investment capital for the rich and well off to profit from their non-labour. The idea that the sovereign wealth fund belongs to all, and should support all, is unthinkable.

The most obvious advantage of a guaranteed Universal Basic Income, UBI, is that it would enable a vast simplification of our horrendously complicated tax system. Peter Costello once famously said that our tax system needed to be complicated because we live in a complex society, but he had it a... backwards. - our whole society is screwed up due to the rotten tax system.

Imagine, for example, that every adult Australian, (you, me, and James Packer) received $250 per week, regardless of any other income, but that ALL other income was taxed at a flat rate of, say, 40%. No capital gains concessions, no possibility of shifting income to lower taxed family members, no way of avoiding tax by "gifting" property to family members, etc., and where the only possible response to the question of "How can I reduce my tax?" is "Reduce your income".
(At $52,000 per year, the UBI balances the tax, so that only those with incomes below this are aided by it. Although James Packer receives the UBI, to simplify the system, he is helping.)

As a trivial example, a company that has a profit of $10M before paying the workers, pays $4M tax, and is then free to pay the workers out of the remaining $6M, after tax. The workers have no need to fill in forms, or contact the ATO, unless they have other sources of income.

The ATO could downsize tremendously, Centrelink would be unnecessary, our universities could turn out more doctors, scientists, and engineers, rather than blood-sucking lawyers and tax consultants. And it is not hard to imagine a great reduction in crime, suicide, and family violence.