- December 11, 2023
- Posted by: legaleseblogger
- Category: Related News
Speed-Dial AI Lawyer (470) 835 3425 FREE
FREE Legal Document translation
Try Free Now: Legalese tool without registration
How AI Legalese Decoder can help with the situation:
Financial Discussion: Desired Changes in Tax Reform in Australia
In contemplating potential tax reform in Australia, it is evident that the current tax system is overly complex and could benefit from significant simplification. An overhaul of the existing tax structure is necessary to streamline the process and make it more efficient for all parties involved.
Currently, there is an extensive list of taxes, including income tax, Medicare levy, Medicare surcharge, emergency services levy, GST, council rates, stamp duty, and various vehicle registrations. Additionally, negative gearing and capital gains tax further complicate the tax landscape.
Proposed Changes:
To address these complexities, I believe that consolidating the existing taxes into an indexed progressive income tax and a 15% GST would be a beneficial course of action. This would not only simplify the tax system but also make it more equitable. Furthermore, implementing a similar progressive corporate tax would streamline the tax structure for businesses.
In conjunction with these changes, abolishing depreciation and other tax minimization measures would help to further simplify the tax laws and ensure fairness across the board.
How AI Legalese Decoder Can Help:
AI Legalese Decoder can play a pivotal role in the proposed tax reform by analyzing and interpreting the complex legal jargon associated with tax laws. The software can simplify the dense and intricate language of tax regulations, making it more accessible and understandable to a wider audience. This would be especially beneficial for individuals and businesses navigating the tax system, as they can utilize the AI Legalese Decoder to decipher and comprehend their tax obligations more effectively. By demystifying the intricacies of tax law, the AI Legalese Decoder can empower individuals and businesses to make more informed decisions and navigate the tax landscape with greater confidence.
Speed-Dial AI Lawyer (470) 835 3425 FREE
FREE Legal Document translation
Try Free Now: Legalese tool without registration
AI Legalese Decoder: Simplifying Legal Jargon for Everyone
Understanding legal documents and agreements can be a challenging task for most people. The use of complex legal language and jargon often makes it difficult for individuals to grasp the true meaning and implications of the terms they are agreeing to. In many cases, individuals may unknowingly agree to terms that are not in their best interest simply because they do not fully understand the legal language used in the document. This lack of understanding can lead to negative consequences and legal disputes down the line.
AI Legalese Decoder is a revolutionary tool that aims to simplify legal jargon and language for everyone. By using advanced machine learning and natural language processing algorithms, AI Legalese Decoder is able to analyze and break down complex legal documents and agreements into simple and easy-to-understand language. This allows individuals to fully comprehend the terms they are agreeing to and make informed decisions about their legal matters.
In addition to simplifying legal documents, AI Legalese Decoder can also help individuals navigate through complex legal processes. Whether it’s understanding the terms of a contract, deciphering a legal notice, or getting insight into a specific law or regulation, AI Legalese Decoder is there to provide clarity and guidance.
Furthermore, AI Legalese Decoder can be particularly useful for businesses and organizations, helping them ensure that their contracts and agreements are easily understandable by all parties involved. This can help reduce the likelihood of misunderstandings and legal disputes, ultimately saving time and resources for all parties.
In conclusion, AI Legalese Decoder is a valuable tool for simplifying legal jargon and language, making it accessible and understandable for everyone. Whether you are an individual navigating a legal matter or a business drafting contracts, AI Legalese Decoder can provide the clarity and understanding needed to make informed decisions and avoid potential legal pitfalls. With its advanced technology and user-friendly interface, AI Legalese Decoder is paving the way for a more transparent and accessible legal landscape.
Speed-Dial AI Lawyer (470) 835 3425 FREE
FREE Legal Document translation
****** just grabbed a
Generally what most people want is reduce their own tax rate to improve their living standard and increase others tax rate to fund for the better living standard.
For example plenty of people think that dental should be included in Medicare. However the same people will be furious if government increase their Medicare surcharge by $100-200 annually to pay for other people dental work.
I wouldnÔÇÖt call depreciation a tax minimisation strategy.
I think there’s an argument for simplification, but I don’t agree with rolling up all those things you mentioned.
Rego – I think that needs to stay separate. It’s a user pays system. Taxpayers should not be subsidising someone who wants to have 3 cars and a boat, etc.
Medicare Levy – This is something tax payers should be subsidising. I think it needs to stay as a separate tax so that the money is earmarked specifically for healthcare. I also think it needs to rise significantly. 20 years ago, pretty much every Doctor bulk-billed. Now hardly any do because Medicare doesn’t pay enough. I am happy to pay significantly more Medicare Levy so that everyone can see the GP for free, even if it works out more expensive for me personally. I’d also like to see medicare expanded to cover more stuff. It’s confusing as hell trying to work out what’s covered by medicare, what’s covered by private insurance, and what you have to pay yourself.
I also think we should bring back the Minerals Resource Rent Tax, or something similar, and put the proceeds in a sovereign wealth fund, which would be used to fund pensions.
I’m not sure about the whole negative gearing thing. Property prices are way too high, yes, but is that a significant contributor? Maybe is contributes a bit by encouraging people to speculate on property, but the main factor is probably just supply and demand – too many people, not enough housing.
>Income tax
The main one for individuals
>Medicare levy
This is stupid, doesn’t actually pay for Medicare and should just be factored into the main tax rates. Non-PR shouldn’t be factored in.
>Medicare surcharge
An insanely stupid ‘tax’ which is a punishment for not buying a private product you don’t even have to use.
>Emergency services levy
This is state based and fine, and is user based, but all state/council rates/taxes/levies could be simplified.
>GST
A pretty standard consumption tax
>Council rates
Required for services
>Stamp duty
I mean, we could just put GST on house sales instead I guess?
>Car/boat/motorbike/trailer Registration
Absolutely good ‘taxes’, necessary for registration and user pays.
>Negative gearing
Not a tax, the opposite in fact
>capital gains tax
Should be at full marginal rates but is a valid tax
Anything to push companies to reinvest profits into themselves.
Australian businesses because of retirees and tax laws are incentivised to pay out alot of profit. this stunts growth and is worse for both long term investors, consumers and Australia as a whole.
I personally hugely benefit from the franking system and double taxation is unfair but Australia as a whole is being slowed through discouragement of innovation.
A tax law that would both keep the franking system and incentivise innovation would be amazing for Australia
Three big changes I would make are:
1. More tax brackets above what we currently have. It should go up to a million at least and cap at a high rate (80%+). This would need to cover workarounds like stock options and non cash compensation.
2. Close trust tax loopholes and make income tax a joint position if you have a spouse. It’s not fair that someone can receive private dividends as their income and then distribute half to their non working wife through a family trust to avoid tax but a PAYG employee cannot.
3. Tax gifts (and inheritance) over a certain amount. An amount thats higher than most people would expect to receive. E.g $1m+. Controversial I know due to double taxing.
These opinions come from my work as a private banker and what I see in my work day to day.
Tax brackets indexed. The fact that it isnÔÇÖt is an absolute farce.
Explain how depreciation is a tax minimisation measure? Depreciation is a long understood accounting concept for assets which decline in value over time. What’s your concern exactly?
Reduce personal income tax and index brackets
Increase tax on all luxury goods.
Increase GST on non-essentials. Maybe consider expanding GST free to fuel and other essentials
Legalise drugs and put a super tax on them. Put a super tax on alcohol and tobacco as well.
Introduce an inheritance tax.
Oil and gas production needs to be taxed more. They have very low tax rates compared globally.
Mining is probably ok as they get corporate and royalty taxes already.
I definitely think we need to have a look at the GST rate. ItÔÇÖs been in for 23 years now and is still at 10%. Any increase in rate would have to go hand in hand with reduced tax for low income earners. Perhaps the tax free threshold should be linked to the single aged pension. If that is what the government thinks is necessary for someone to live, why would you tax any of it in the hands of a worker. Yes I know some of the rebates do mean that you can actually earn more than the tax free threshold without paying tax but why complicate it with rebates. Just increase the threshold.
Secondly we need to look at the tax breaks for property holders. Perhaps no more negative gearing. Get rid of the primary property CGT exemption but put some caps or exemptions on it so you are mainly targeting the higher end of the market.
Ending deductions for payments to related entities
INB4 thread gets locked.
​
Broad based Land tax which increases depending on how dense the area has been zoned e.g. R2 is 1% R3 is 1.5% and R4 is 2%.
Scrap stamp duty.
Reduce CGT discount
Include PPOR in pension asset test. Increase asset test to 1 mil to get max pension and 2 mil to get 0 pension.
Increase Jobseeker to level of pension and let it increase by wage growth rather than CPI which tracks higher.
​
Basically tax capital owners more and redistribute it to the less fortunate.
Reckon its a good question.
My thoughts on your ideas –
Registrations, licenses etc are to administer and provide support to those users. I.e. it probably makes some sense state governments recover for providing a service.
Gst 15pc – if they increased tax free threshold maybe. Gst is otherwise a regressive tax so id say tax free threshold relief and a boost to unemployment, pensions and other fixed incomes like gov defined benifit super would be necessary along with it.
Progressive company tax – how is that progressivity determined? We would just see millions of companies established and split off existing to reduce tax burden. Every mine would be its own company with any loss making brought in to a winner mine. Ie paired off and made new small companies.
My thoughts:
Super tax free in retirement phase. This may be sustainable now. It wont be in 15 years. Id rather than move to make it sustainable now. Say keep the 15pc tax on income through retirement and implement now so workers now dont just subsidise retirees now and then see that subsidy removed when they retire in 15 years… hot tip: it just doesnt work as super grows.
Company tax and income tax – reduce both but still keep progressivity in income tax.
Land tax – start small but on all land except farmland and other land with no or limited infrastructure connections. Maybe 0.5pc initially to 1pc in ten years then hold it there. We need to fund existing and new infrastructure via the person making the benifit – landowners. Not new buyers.
Anything much that would draw focus from real estate speculation and into other more productive realms. Negative gearing on existing properties in particular is disastrous.
Bring back the Minerals Resource Rent tax.
Bump up the current tax rates in line with wage growth and more brackets, for example:
$30,000 tax-free
$30,001-60,000 20%
$60,001-100,000 30%
$100,001-150,000 35%
$150,001-300,000 40%
$300,001-500,000 45%
$500,001-1,000,000 50%
1,000,001+ 55%
stage 3 is a good start.
I would like to reduce income tax and tax inheritances particularly the family home.
Easiest reform to make. Everyone that lives out of b3 gets a 40k tax free threshold. Then after that they only get taxed 10c to the dollar.
What tax minimisation measures do you mean? Did you understand that you only pay tax on the profits earned from an investment, not the total revenue earner.
I don’t think the number of different taxes is really an issue and too complex. You own a trailer, you need to register it. It’s pretty simple. If you didn’t need to pay registration and contribute to the repairing damage you do to the road with the trailer, then everyone else would have to. I’m not sure why the taxpayer should subsidise boating in the weekends.
We should implement the recommendations of the Ken Henry Tax review from a decade ago and get on with life.
Nothing you mentioned is complex at all, except for negative gearing a little.
Medicare levy surcharge/Lifetime Health Cover Premiums is kind of lame and can create tax cliff. I’d rather just pay in to Medicare more efficiently. Private really just lets people pay to skip a line of doctors/specialists who would otherwise work in public (and often still do). Insurance companies can bite me.
Stamp duty has its issues vs land tax. But if you plan to live in one place >15 years, many may prefer stamp duty. We will see what the states end up doing with it.
As long as tax minimisation/avoidance is itself complex, tax will remain complex which will in turn make minimisation strategies complex and so on. Closing loopholes and restructuring to ensure a gov can raise enough taxes to run a country is inherently complex.
Depreciation/Amortization/insurance/rent related taxes could be standardized some I suppose.
GST increases can fob off, the last thing lower earners need is a nice nearly unavoidable increase in taxes. But I think it will still happen at some point anyway.
Reducing all this down to just income taxes may punish people for working and being productive, and I personally don’t want people who don’t own cars/boats/motor bikes to pay for people who do.
I like the idea of progressive income tax on corporations/other entities. But that is more complex rather than less. I’m sure the bigger companies don’t love that idea.
Transfer pricing/international IP handling is often pure accounting story telling too. But I’m sure internationals will come up with some other minimization strategy. Doesn’t mean we shouldn’t try harder though.
I don’t have much to contribute, but I don’t understand why I need to pay two lots of TAC charges for my motorcycle and car (Victoria). I can only operate one vehicle at a time. TAC should be charged to the license, not the vehicle. Especially with the rise of car share schemes.
But I’m just a pleb, what would I know?
I think it federal taxes need to be rolled back into one. Unfortunately you can’t do that with state taxes, or council rates.
Put in extra, but with smaller increases tax brackets, so people don’t get a huge jump when they go up a little bit. While we’re at it, bump up that first threshold a bit.
Bring back indexing – the Stage 3 discussion wouldn’t be happening, if indexation wasn’t removed 20ish years back. While we’re at it, dump the flat 50% CG discount and go back to the percentage version too – that adjusts for the passage of time, instead of giving a huge boost to a speculator who held onto an asset for just long enough to get a fat discount.
Increase GST to 15%, but tell the doomers who eant it to apply to medicines, fresh produce and the like to go jump.
Tax the family home – but give people access to the same deductions as investors.
Put company tax up to a flat 35%. And dedicate extra resources to auditing. Make all companies lodge a set of their financial statements with ASIC again, regardless of the size.
Minimum wage is tax free but agree with GST being 15%. No one can avoid consumption.
Index the marginal rates with cpi. The added benefit of indexing with cpi would mean any real wage growth would increase government revenue. Wages triple (like average has since 1990) vs cpi doubling (again since 1990) you’re not worse off but your gross tax percentage has increased.
Pay tax on your income without deductions. You want to buy a phone/glasses get your boss to buy it. You need accreditation or licenses for your work buy them so you can earn. That investment costs you more than it earns then keep a record and adjust the capital gains tax. No deductions.
If depreciation is scrapped, am I assume the full cost of an asset is written off the same day I buy it?
Higher taxes on vacant property, AIRBNB properties, and multiple rental (say 2+).
Remove or restrict negative gearing.
Some points are not taxation related but I would like to see:
– Stage 3 tax cuts fully offset into Medicare Levy to improve funding, reduce or eliminate gap payments, reduce or eliminate waiting time and potentially include some form of dental coverage in it.
– I would like to see the choice of Junk private hospitalisation covers vs. Medicare levy surcharge to be fully eliminated, Medicare levy surcharge made mandatory to further improve Medicare funding and waiting time.
– I would like to add the ability to the RBA to enforce temporary increase (or decrease) to mandatory superannuation contributions up to a certain limit (say 4%) instead of only the ability of raising interest rates. This means during inflation they aren’t simply shifting money from some people with loans to banks. Instead they’re shifting the excess disposal spending from most people from present to their future (and vice versa if economy needs to be stimulated).
– I would like to see Child care and early childhood development to be setup in the same way as the currently setup public school system so parents don’t have their careers held hostage at the mercy of private services who prioritize profits over service.
– I would like to see imposition of super taxation on super profits and super taxation of any tariffs for commodities sold overseas which are not at global fair market rates.
– I would like to see regular mandatory indexation of Income tax slabs every year in the same as as HECs/HELP debt.
– I would like to see govt bail-outs to be treated as loans similar to HECs/HELP Debt rather than handouts that allow socialisation of losses and privatisation of profits.
– I would like to see elimination of private toll operators and instead the tolls should be 100% going to the public treasury.
– I would like to see more severe civil and criminal penalties imposed on tax dodges (both income and GST) and wage theft with active enforcement for e.g. continuous sting operations to catch business (Small or big) trying to bill in cash to then not record GST.
– I would like to see appropriate annual indexation on all limits applicable around taxation, for e.g. annual limit for tax favourable contribution to super, limit above which the superfund starts to get fully taxed (new law), limit at which MLS starts to apply, etc.
Increase GST
Remove GST on some small amount of prducts/services
Remove Stamp Duty
Increase Land Tax a little bit
Completely renegotiate GST packages
Index tax brackets in line with wage inflation each year
Reduce overall tax intake.
Remove Emergency Services Levy
Make it harder to claim NFP status
Increase fines for tax dodging
Stop tinkering with super.