Fractelle,negative gearing is a legimate business expense.Why should any investor or business pay tax on the interest that banks charge us?Eliminate we negative gearing and you will have no houses.37% of a house land package is made up of state taxes and charges.In NSW we have a shortage of housing already because of taxes.

Would you like the NSW Govt to build your house just like the rest of the failed infrastructure projects in this State?They will build you a cottage for 3 times the cost of private enterprise.Because of all their own regulations and fear of litigation,the few elite private enterprises who are asked to tender,jack their prices enormously.China could do the same contracts for a tenth of the cost.We have ourselves in a stupid bind.Govt waste ,regulation and just plain stupidity.We also lack the courage to do what is right for the common good.I don't think that the term "common good" has tenure or meaning in any of our bureaucracies.

The other factor is the State Govts have restricted supply of land to maximise their own profits.They have become just greedy self serving fat cats whose prime occupation is counting their super and anticipating retirement.

Banks were once a source of loans to buy houses and finance businesses as their prime purpose.Each child at school had a Commonwealth Savings Bank pass book.Now Banks are another share on the Stock exchange.Now some youngsters have never saved anything in their life and credit cards are so easy to come by, they don't have a need to save.When they wanted to buy a house the Commonwealth Bank needed proof of their savings habits to show they had 25% of the loan they required saved as a deposit.So many differing opinions on what has gone wrong now. It's really one word -savings.

Col Rouge,
I apologise if you think I was having a go at accountants. I actually have three in my family and all are ethical and trustworthy people.

I take it that moving manufacturing off-shore to save costs is also a perception problem.

I used Packer as an example of those for who have methods of tax minimisation (if not avoidance) that are not accessible to the average taxpayer and for who the payment of tax is regarded as somewhat optional.

How much money is the ATO currently chasing from that end of town at the moment?

Yabby, I’d like to know your sources. Mine say that KP's personal income tax was embarrassingly low. My sources also have a few things to say about his “Goanna” period dealings which are less than savoury.

Rache.

Packer Company Tax.
10% in 1992
http://www.theage.com.au/news/opinion/the-taxing-art-of-bludging/2006/01/02/1136050387120.html

Nil in 1998
http://www.smh.com.au/news/business/james-packer-weaves-that-old-tax-magic/2007/08/22/1187462357171.html

*Yabby, I’d like to know your sources. Mine say that KP's personal income tax was embarrassingly low.*

Rache, no doubt Kerry's personal income tax was low, for he owned
and controlled all sorts of companies and paying company tax makes
more sense then paying personal tax.

His tax affairs were regularly discussed in the financial press.
Over time, huge amounts were still paid, even though he minimised
what he had to pay.

FYI Kerry simply felt that Govts were not very wise in spending his
money and the present 10 billion$ give away kind of proves him
right.

Yet he was a very generous fellow, when he believed in a cause.
Kerry had a great fondness of animals for instance and I know
personally of one particular project, where he quietly pulled
out his cheque book and signed a cheque for 1/4 million $ and handed
it over, but he did not want it known publicly. I only happen
to know, as somebody whom I know, was passed the cheque to bank
it for the organisation.

Businesses of course don't only pay income tax, they pay huge
amounts of all sorts of taxes and charges to Govt. From payroll
tax to stamp duty on every insurance account, they cough up on
a continuing basis, as Govts know that they can tax business with
relative electoral impunity, something that they cannot do with
the general public.

So Rache, I doubt that you paid Kerry's share for him, for he paid
all sorts of taxes in huge amounts. Did he try to minimise what
he paid? Sure he did, just like most people

Diploman you have defined the crux of the problem.We have replaced the savings account with a debt account called the credit card.We have become slaves to debt and many banks/financial institutions will go down,but their CEO's and directors will take the money and run.