In order to "write off expenses", as you describe it, you need to have made some kind of investment, and to have actually spent that money.
Pericles,
The problem has arisen that the definition of investment is becoming less defined by the minute. In my view there shouldn't even be such a term as investment. but that's another story, You want something badly enough then you either ask someone to give it to you, steal it or buy it. Either way you're obtaining something that you desire. You should not have the right as you have presently, to expect others i.e.taxpayers to subsidise you. Writing it off is asking others to back you. What is an investment ? It could be anything that you spend your money on with the goal of getting back more than yo laid out. Nothing wrong with that as long as you do all your paying yourself. Why should I pay tax at say 40% on a car when you buy the same car but write it it off in tax ? Instantly I'm being discriminated against. If we both desire the same car then we both should pay the same price. No writing off nor anything period ! Earn a Dollar pay 10% tax, spend a Dollar pay 10% GST. There, everyone's getting the same deal. What's wrong with that ? Of course that would negate the artificial & utterly unnecessary complexity of it all & it would leave those financial hangers-on dangling in the air pondering life without being able to exploit others.

We seem to be talking at cross purposes here, individual.

>>Either way you're obtaining something that you desire. You should not have the right as you have presently, to expect others i.e.taxpayers to subsidise you. Writing it off is asking others to back you.<<

In any business, it is normal practice to write down an asset over time. This appears as depreciation in your profit and loss account, which is an expense. The taxman actually insists that you do this, otherwise you would claim the whole lot as a business expense in year one.

If you are suggesting that no business should be allowed to offset expenses against revenue, and should pay tax on the revenue instead, that's fine. But that does not take into account the very different nature of different businesses - no airline, for example, would ever get off the ground if its billion dollars of investment in airliners was treated the same as the corner store filling its shelves with a consignment of Mars bars.

>>Why should I pay tax at say 40% on a car when you buy the same car but write it it off in tax?<<

If you have a legitimate business, and the car is a legitimate business expense, of course you should be able to write its value off, over time, against the revenue it generates. But you cannot do this as a private citizen. Nor can I.

And Arjay, the article you cite - as WmTrevor has gently pointed out - actually supports my position, not yours. I suggest you read it again. All of it.

I doubt you will understand it, though. Which is a real pity.

it is normal practice to write down an asset over time.
no airline, for example, would ever get off the ground if its billion dollars of investment in airliners was treated the same as the corner store filling its shelves with a consignment of Mars bars.
Pericles,
Yes I know this is how it goes but it's not a sustainable system hence the cracks appearing all over the place. Greece, Spain & probably Australia next are the first ones to come down with that symptom that is our economic system according to the super greedy & their hangers-on financial experts.
Imagine if a flat tax were introduced. These people would have to do with 3 million per year instead of twenty. Gee that would be tough. It would also cut emission by some great degree but hey, we don't want to reduce emission either when it's something that can be taxed, do we ?
It's all about excessive greed & ego not just greed. They & incompetent Governments are responsible for much of the suffering that goes on. They're no better than the religious morons.

Wow, individual, that's a new one.

>>Yes I know this is how it goes but it's not a sustainable system hence the cracks appearing all over the place. Greece, Spain & probably Australia next are the first ones to come down with that symptom that is our economic system <<

You actually believe that the financial problems in Greece and Spain are the result of companies being able to depreciate assets on their balance sheet?

Wow.

Pericles,
The depreciating of assets & subsequent wrtiing off which is in fact a mere making all of us pay is a part of the problems that are bringing down whole countries. It's been happening for a long time but it's only now & in the very near future that it'll become more obvious.
The absolutely no value for our tax dollar Public Service bureaucracy is probably worse because it produces nothing of even the slightest value. When the situation becomes a little tougher it'll be the bureaucrats who will go first. Look how much money the Gillard Government is asking Ford to pay back now. Prime example of a system failing.

Intriguing concept, individual.

>>Pericles, The depreciating of assets & subsequent wrtiing off which is in fact a mere making all of us pay<<

In what way are we paying (I assume you mean the taxpayer) for the depreciation of assets?

Let me walk you through an example.

If Qantas buys a six-pack of Dreamliners from Boeing for a billion dollars, would you or would you not count this as a business expense, and reduce Qantas' tax bill accordingly?

If you say yes, then all you are doing is allowing "instant" depreciation of the asset. It wouldn't appear on the balance sheet, as it is fully written off.

If you say no, and at the same time insist that depreciation should not be allowed, then you are in fact arguing that no business expense whatsoever should be permitted. Tax could only be levied in those circumstances on revenue, not profit.

Which is an extremely difficult proposition, and one that would require different tax rates for different businesses. Consider the different revenue and profit profiles of, say, Coles and Qantas. Or BHP and AMP. Think it through, then get back to us.