I believe that our GST taxation system is totally dysfunctional; no one understands it, not even the tax department.

The whole system of taxation in Australia, in my opinion, needs to be rebuilt from scratch. There has never been any public debate on alternative taxation systems that included all possible options. The last debate from my recollection only debated about GST.

I believe a fairer and simpler system is a Debit Tax. This system could be implemented easily through the nations ATM’s and tax deposited each day automatically to the Federal Government. There would be no need for tax returns. No need for a Taxation Department as such, or only a small department. No need to HAVE to employ Accountants to do our tax returns. It is easy to comply with and everyone would be happy to pay their fair share. That is except very big business and multinationals, who at present I believe pay very little or no tax, they use our resources, and take most of their profits out of the country.

This system can be looked at on the following web sites.

http://www.nutech2000.com/webtext/upaussie/dtaxconcept.html

http://home.overflow.net.au/~nedwood/gst.html

http://www.johnston-independent.com/debit_tax.html

http://www.snakeshow.net/default.html?social_tax_debit.html~mainFrame

I believe the basic structure of a Debit Tax System is fine, with maybe some fine tuning.

I ask our political leaders or potential leaders to seriously look at this system, have a public debate about it and/or some other system that may be equally simple and functional.

What are others thoughts on this system?

attaboy.

a rational and just democracy would finance itself just as you describe. unfortunately, we don't live in one. the standard of discussion i have found here suggests we aren't about to change any time soon, either.

the politicians guild would wither and die if they could not reward supporters with preferential tax treatment. they understand this just as a bird understands gravity. that is why the gst was levied on top of variable taxation, rather than replacing it totally.

no chance,mate. but it was nice to see someone willing to step off the beaten path for a change.

PEOPLE POWER you so far out of the paddock you may as just well be in another overseas country. What you have failed to realise is that the income tax (your money) you believe, and the Tax Commissioner claims you have an obligation to pay, is that the obligation only exists because you entered into a lawfully binding agreement with the Tax Commissioner and agreed to pay what ever Michael D'Ascenzo or is delegates in the TAX OFFICE deem appropriate. It was a voluntary obligation prior to that agreement but you can cease the agreement by instructing the Tax Commissioner not to use, provide to third-parties, store or maintain a record of your TFN for the purposes of identification, even for taxation purposes or he is committing an offence under sec 8WB of the Taxation Administration Act 1953.
This agreement commenced when you applied for a Tax File Number for the purpose of paying taxation and that is when your voluntary obligation ended and your legally binding obligation commenced. Since then the terms and conditions of the contract have changed many times and did you object, no, you did not write to the Commissioner and object in writing or serve notice of your objection on your Parliamentary representative elected in the elections you voted in as an ELECTOR, you acquiesced (implied consent) and you now are a party to a lawfully binding contract or agreement that created this obligation and the pretend courts will make sure that you pay

Not a bad idea. It would need to be marginal based on volumes in a particular month, or would penalise low income earners. Our marginal system is designed to get a higher contribution from those that earn more, and I can see the merit in that. Also your system would be great in a cashless society, but cash still talks quite loudly (particularly given the GST).

Yes, the GST should just be on everything and it would be much more workable. You could cut the income tax rates for low earners to help offset the additional cost that this would impose on food etc. I'm a tax accountant, and I think its far too complicated, so what about the average Joe.

Young Dan, you're a bit mistaken. Yes, you dont have to apply for a TFN, but if you dont supply one to your employer, they must withhold the top marginal rate of tax (currently 46.5% inc medicare). Given that most people are on either a 15% or 30% tax rate, then you suffer unnecessarily by NOT having a TFN. Similarly if you supply goods or services to a business without giving them an ABN (which you cant get without a TFN), they have to withhold 46.5% of your payment. There are plenty of safeguards built into the system to make sure the govt gets their cut (or more).

Country Gal, Its already been done and there is no way around it as the Commissioner and any employer also has to comply with the rule of law and that appears to be something you have no understanding of. If you wish to make these statements about what the employers statutory obligations now you can provide the statutory basis for these statements or forever keep your mouth shut as any attempt to track them down will be very disappointing. If and when I choose to work I do it as a self employed individual and not as a statutory slave like you and the people who provide me with employment pay 100% or the work is not commenced.
The previous Tax Commissioner discovered this the hard way and was summoned to appear before one of Her Majesty's Courts in Qld and as you are fully aware he has now been moved sideways to some other position in bureaucracy.
I am also aware that an attempt to introduce a Bill into the Federal Parliament was being made to remove liability from the Tax Commissioner personally and place it in the lap of an entity that does not even exist. I would not expect much better for an accountant as your very existence relies on the legal theft of property from individuals who do have rights to property as well as life but as you would claim to be university educated you would have to know it all or so you believe.

Dan, it took about 4 1/2 minutes to turn up the statutory items that you claim do not exist (note for the future - dont debate tax law with someone who's home page is the tax office website).

The withholding tax rules are contained in the Taxation Administration Act 1953. There is a schedule of payments that may require withholding by payers in s10-5.

s12-35 is the requirement of employers to withhold from payments to employees.

s12-190 is the requirement of businesses to withhold from payments to other businesses that do not quote an ABN.

The power to requirement lodgement of income tax returns in contained in the Income Tax Assessment Act 1936 (ITAA1936), in s161(1). This gives the Commissioner power to issue an annual legislative isntrument (which has the force of law) to require that certain people lodge an income tax return for that financial year, by a certain date. Individuals who earn more than $6000 per year are required by this law to lodge an income tax return. Remember all those court cases going back abtou 5 years where a heap of lawyers were sent bankrupt because the Commissioner found out they hadnt lodged tax returns for more than 30 years, and issued assessments for those years? There is your proof that this law is held up by the courts. Fail to lodge at your own peril.

I dont like paying tax anymore than the next person, but its a necessary evil. Funds are needed to run our public infrastructure and services, and they have to come from somewhere. If you deliberately dont pay tax, then stay the hell off our public roads, transport, dont use the public hospitals, dont claim a medicare rebate, never call on the police, dont watch the ABC and DONT claim welfare payments.