Talking Politics

[Sintiger]

Best way to raise revenue is to get rid of middle class welfare. That includes CGT discounts and franking credits, child allowances for people who don't need it.

Then the big elephant in the room, negative gearing. While I understand the concept, it's being abused in the residential home market. Lock negative gearing into a single asset. Don't allow loss making on one property offset profits from another.

But doing the above is a certain recipe for a lost election, unless some unholy alliance between the 2 major parties occur, but that's getting less and less likely every day.

When the negative gearing changes were discussed before the last election the mantra of the LNP was that lots of people with middle incomes had negatively geared properties and it wasn't just rich people. I wrote to my local member (who happens to be the Treasurer) and suggested that they should put a dollar limit on interest deductions. So instead of saying it's one property only (someone could have a $2 million loan on a Noosa Heads beach front as an example) say that interest on loans up to a limit can be deducted ( say $500k or something like that). I never got a reply !
I am not against franking credits because all they are in the end are making sure dividends aren't taxed in total above the individual tax payer's marginal tax rate but what I am against are the changes made by Howard/Costello which allowed cash refunds of franking credits. All they do is reverse all or part of the company tax paid on the underlying profits from which the dividends are paid and that is fundamentally wrong.
There has to be a transition period on these things however because there needs to be time to adapt.

 

[MD Jazz]

Best way to raise revenue is to get rid of middle class welfare. That includes CGT discounts and franking credits, child allowances for people who don't need it.

Then the big elephant in the room, negative gearing. While I understand the concept, it's being abused in the residential home market. Lock negative gearing into a single asset. Don't allow loss making on one property offset profits from another.

But doing the above is a certain recipe for a lost election, unless some unholy alliance between the 2 major parties occur, but that's getting less and less likely every day.

Agree, other than franking credits. They should simply stop them being refundable if they exceed the total tax payable.

Also agree it is very unlikely any gov't will get rid of negative gearing.

 

[MD Jazz]

But yes there needs to be a serious discussion on tax reform and everything should be on the table in that discussion. Unfortunately it's a very complicated issue to resolve. The first thing we need to do is ensure big companies and mega gazillionaires are paying there fair share of tax and remove the loopholes that allow them to avoid it.

Not sure you would get any arguments on this. But it requires massive co-operation across tax jurisdictions.

 

[MD Jazz]

Coronavirus prompts Victoria to launch $2.7b construction blitz to stimulate state's economic recovery

www.msn.com

This is the sort of stuff we need across the board.

 

[Baloo]

We have little chance of real Tax Reform. When the sitting government commissions an independent review of the taxation system and it makes recommendations on how to fix for the government to just ignore it, you know we have no chance.

Ken Henry's tax review is gathering dust, but its ideas could kick-start Australia's economy - ABC News

Ten years ago, Ken Henry handed his boss Wayne Swan Australia's first major tax review in more than 30 years. A decade on, it sits gathering dust, and its lead author says that's costing Australia "big time".

www.abc.net.au

 

[antman]

Norways Sovereugn Wealth fund pays off for its citizens and the economy

World's biggest wealth fund now reaps rewards of move made 50 years ago

amp.smh.com.au

 

[DavidSSS]

Norway's Sovereign Wealth fund pays off for its citizens and the economy

World's biggest wealth fund now reaps rewards of move made 50 years ago

amp.smh.com.au

That can't possibly be true, the public sector can never be trusted to do anything right, at least that's what some people tell me.

DS

 

[Baloo]

That can't possibly be true, the public sector can never be trusted to do anything right, at least that's what some people tell me.

DS

They did it funds funds stolen under the threat of violence from land owners

 

[antman]

Of course the population of Norway feel good about it, they've taken by force the hard-earned fruits of the labours of a small cadre of international billionaires and big oil corporations. They've contributed to the general impoverishment of these well-meaning folk.

 

[Baloo]

Of course the population of Norway feel good about it, they've taken by force the hard-earned fruits of the labours of a small cadre of international billionaires and big oil corporations. They've contributed to the general impoverishment of these well-meaning folk.

So back to their roots of raping and pillaging from others. Skol!

 

[Tigers of Old]

Only a 60 Billion dollar error..

Sick of confusing ATO forms? This one's responsible for a $60 billion error

What's the difference between one person and 1,500? Hundreds of businesses massively overstate how many employees they have on the books, thanks in part to a question the Government admits "could have been clearer".

www.abc.net.au

 

[Sintiger]

Only a 60 Billion dollar error..

Sick of confusing ATO forms? This one's responsible for a $60 billion error

What's the difference between one person and 1,500? Hundreds of businesses massively overstate how many employees they have on the books, thanks in part to a question the Government admits "could have been clearer".

www.abc.net.au

I don’t understand how a government can blame employers filling out forms incorrectly for the error when the forms didn’t exist when the announcement was made

 

[mrposhman]

I don’t understand how a government can blame employers filling out forms incorrectly for the error when the forms didn’t exist when the announcement was made

They did. The $130bn figure was the original estimate of 6m workers. They came out last week saying 6.5m workers had been registered which was the incorrect part. Seems its really a lot lower than 6.5m workers

 

[tigerman]

Surely the over 1 million casuals who missed out on JobKeeper will now be recognised and looked after by the Government.

 

[HR]

Surely this error is just good news. There is no "bad" in this. Nothing to see here move on.

 

[tigerman]

Surely this error is just good news. There is no "bad" in this. Nothing to see here move on.

Some casual workers have received a pay rise, while other casuals who haven't worked for the same employer for 12 months miss out on the JobKeeper. Something needs to be done to fix, what was, in principle a good initiative.

 

[Tigers of Old]

It is good news (this time). However it all comes down to the Government's ability to manage the country's fiances.
They misplaced $60 billion taxpayer dollars. It's displays incompetence.

 

[Sintiger]

They did. The $130bn figure was the original estimate of 6m workers. They came out last week saying 6.5m workers had been registered which was the incorrect part. Seems its really a lot lower than 6.5m workers

Not sure how application forms could have existed for something that hadn’t been announced Mr P . The government blamed the errors made in the application forms for the difference between the 6.5 million and the 3.5 million it is now. The application forms validated the estimate of 6.5 million, the forms were filled in after the announcement was made with that estimate. It’s only the payments that have picked up that the number was overestimated.
The original estimate from treasury was wrong. That can happen but it’s a pretty big error. Not sure why the government just didn’t say that.

 

[tigertim]

Surely this error is just good news. There is no "bad" in this. Nothing to see here move on.

No, definitely a bad thing that there’s been an estimated $60b that doesn’t have to be added to the national debt....

 

[Brodders17]

No, definitely a bad thing that there’s been an estimated $60b that doesn’t have to be added to the national debt....

i dont think anyone is worried about less debt, but some may see a teeny concern that our Fed Government that prides itself on economic management, even many others dont, can have be $60B out in their estimates.

on a different note, it is disappointing that the announced surplus (back in back i think was the slogan) has been ditched due to Covid19. im sure all their estimates in the budget would have been spot on.