I agree with you totally here; the burden of filling in a tax return for the average wage-earner is a waste of time and energy. It would make even more sense if we did as they did in New Zealand and cut out most of the tax exemptions and reductions, particularly for work-related expenses. It may be appropriate to leave in tax deductibility for charitable donations - governments in Australia have always been pretty stingy when it comes to supporting charitable organisations (especially the Howard government) when they do things like "criticise".

Now if we could just get the ATO to be a bit more reasonable for those of us on superannuation pensions; what a crock when you are taxed at the designated rate by the superannuation authority, then have that recalculated by the ATO at normal rates, then they have to apply a tax credit to get us back to the right rate.

This is typical of the overly complicated manner in which taxation is managed in Australia.

The recipe should be: simplify, simplify and simplify again until they get it right.

H & R Block lookout, you are under attack.

I do agree but we have a growing number of people being self employed, and without exposure to the tax system it makes a difficult process even more harrowing.

The future will be in small business and this sector is growing, i just hope the current BAS system is changed, as i feel this is where both the government and the business owner is losing out. for every honest joe there are 5 dodgy joes out there. In the construction industry, younger subbies, immigrants and the like are rampant with the failure to pay tax.

Perhaps the mum and dad wage earner is not at crisis point with the tax system as small business owners and ABN holders are.

I cannot believe there has not been an outcry on this. We as SME's are a sleeping giant, we dont complain about our conditions, lack of overtime, lack of holidays, stress and breakdown incidences, we dont complain as we go bankrupt or as we make ends meet, or prosper. we just bear it. Put a tax system like the current on top of it, that means:

A) We just dont know how to do it so many dont
B) We have to pay the expense of an accountant which affects profits
C) We cannot afford an accountant so we dont
D) We are not supposed to be working in Australia anyway so we dont
E) We tend to shy away from a vital part of the business, the cashflow side.

Due to insurance, changing employment structure and the like many are thrust into a complicated world, when in reality all they want to do is do their job.

We need change, its just that we dont have a voice. Where is our support?

The simplest tax system, which I am sure would meet with the approval of an overwhelming majority of voters, would be to abolish all current taxes on income, capital, consumption and land, and for any deficiency in government spending to be met from the sale of politician's assets.

I couldn't agree more. Tax returns are the biggest time waster, not just in hours but in the stress thinking about having to get it done. Haven't we got enough stress in our lives? Can anyone tell me where I sign up for the "Keep life simple" party?

I agree with all posters, and would add that the simplist and fairest tax system, is one where the wealthy, would pay their fair share, in other words, scrap business deductions, which in esscence mean that the employee, subsidises their employer. The billionaires would then be forced to pay 30% of their income, thus increasing the tax take, for the benefit of the nation as a whole.

Bravo, a well argued piece. The idea of tax statements is simple and logical. Again, well done.