Leave it to the Greens. They want to tax big business and and employers out of the country, and the rest of us will have no income to tax.

Tax avoidance is quite legal.
Tax evasion is not.
Long live tax avoidance.

It's a mirage, the top tax in actual dollars transferred to the ATO by any company in Oz 2017 was just 13% with some paying as little as 4% with as many as 40% paying no tax to anybody. And the better off, can so arrange their finances so they never pay more than 15% of their income as tax! And possible due to our highly complex tax laws! The whole rotten mess needs to be jettisoned and could be if there was a political will!

Moreover, if we had one tax rate at just an unavoidable 15% above a generous tax-free threshold and measured against the foregoing facts, we'd likely double internal revenue.

Further, if that were so, we'd need no reconciliation, tax lawyers etc. Or tax compliance costs which average at 7%, meaning, this money could be returned to the bottom line! And the adjusted tax rate would in real terms be just 8%! As the tax lawyers/accountants and other nonproductive parasites scream and rent their garments! the average joe would pay at least 15% less tax.

Then if we could emulate China and remove the profit demanding, paper shuffling middleman, we could halve the cost of living and or doing business!

All the above is doable with political resolve!

That it's not " possible" is due to the fact many of our "representatives are in bed or in the pockets of aforementioned? If there is any other rational, logical explanation, it escapes me!
Alan B.

Two certainties in life, death and taxes.

Dan

Tax Evasion?

I just tried to get a Tiling job done. Only 8.8 Square meters a straight Rectangular room with miminual cutting ( three tiles or 6 straight cuts. Quotes ranges from $1800 to $800.

I went online to a couple of those Tradie Sites & had seven replies.

Only one included the GST. All the others were well over priced & they said they were doing me a favour for doing a Cashie. Cashies seem to be much more prevalent in the Immigrant Community.

Every one of these people were either Asian or Middle Eastern. Three of the Tilers had just move from interstate & three had no credentials & weren't registered.

The same happened with a Painting job at my last house.

Why is that?

I did the job myself & didn't do a bad job, If I say so myself.

Jayb: "All the others were well over priced ..."

So how did you decide that they were well over-priced? Considering that you received *seven* quotes and at least six were in your opinion over-priced, I think it's more likely that your expectation was well under-priced.

Alan B: For years now you've been harping on about replacing all taxes with a 15% flat tax*. But have you actually done any calculations to show that this will work? And if you have, then can you give us a broad outline of the figures- eg. the total amount your tax will raise

In case you've never done such calculations (which personally I'm 99%+ sure of) here's a staring point for you that you need to consider:
The federal government, for the last couple of decades or so, spends about 25% of the nations GDP per year. Note that this figure is *only* for the federal government, not the states- the combined spending of all governments is higher than this!

*:I assume you've always meant 15% for all entities not just individuals. eg: businesses, charities, etc pay 15% as well. And I assume that for non wage earning individuals and other entities this was on profits not gross income. You've never been very clear what you mean by 15% flat tax.

Tax avoidance happens because the loop holes allow it !

Governments have Tax loopholes & Councils have road potholes ! Why ? Because the bureaudroids in both outfits are holes of the same kind !

Thinkabit: So how did you decide that they were well over-priced? Considering that you received *seven* quotes and at least six were in your opinion over-priced, I think it's more likely that your expectation was well under-priced.

Well, this is a rundown for 45 X 450mm Tiles & 6 Straight Cuts.
$1800 @ $40/t
$1500 @ $34/t
$1200 @ $27/t
$1005 @ $22/t
$950 @ $21/t
$850 @ $19/t
$800 @ $18/t
6 straight cuts

The Rate, according to QPS, is $4.50/t

Therefore, Yes, I think it was a little excessive. The only one that included GST was the $1800 Quote. I guess They didn't want to waste time on such a little job. Every Quote was from someone of Asian or Middle Eastern Descent. The same with my Quoting for my Painting Job.

These people are not paying their fair share of Taxes. Actually, I have a good mind to pass their Names on to the Tax office. I do have their Cards.

thinkabit on that.

Jayb: "The Rate, according to QPS, is $4.50/t"

But Jayb we live in a free market based economy. We *don't*, in the main, have mandatory set rates for services (nor should we in my opinion)- if you do want to pay set rates/prices for things then leave the country and live somewhere else.

If you ask for seven quotes and they are all way more than you expected to pay then it means (all most certainly) that you anticipated to pay well less than the current market rate. The chances that seven random tradies all give quotes no where near the market rate are very very small. This is because we live in a free market based economy and if a tradie consistently quotes too high they will eventually go out of business since they won't get customers.

As for them not paying taxes- well this would actually mean that they can quote even lower than the law abiding tax paying tradies. So the going law-abiding market rate would be even higher still than you expect.

But having said thay; yes I agree that you should dob them in. Because I pay a hell of a lot in tax ever year (hundreds of thousands of dollars) and if I have to pay tax than they should too.

Calculations thinkabit? There for all to see except dummies like yourself.
Alan B.

Ok AlanB, if it is so obvious to calculate then prove it to us!
I challenge you to put it on record here: Give us your calculations for an explicit dollar figure of how much your 15% flat tax will raise given the current size of Australia's economy. (eg: the projected total of the Government's tax take for whole of the next financial year under your scheme)

Look I'll even make it easy for you and require only two significant digits of precision, eg: a figure like 250G$ (ie: $250billion) will do and not something more precise like 257.5G$.

thinkabit,
getting rid of negative gearing would fill the coffers in no time !

Far too much money is leaving Australia by way of migrants sending money overseas, Australians spending more overseas than here, Australians buying overseas made goods etc.
This is money that could do wonders here !

Alan B,

It would appear that you are confusing profit with turnover. Corporate tax is paid on profit. Also, you are neglecting royalties, wage taxes, state taxes, GST etc.

Please don't do a Lisa Wilkinson airhead move.