Unfortunately the $5000 limit might well be a meaningless sound bite.
The majority of the costs, tend to be things which are just as easily categorized as administration, or can be shifted to the entities that are the vehicle of minimisation.
Costs associated with personal disputes with the tax department ,might however fall under this policy.
So basically you couldn't fight city hall. Lots of times the tax department are the angels, but sometimes not.
The majority of the 62 people quoted probably have no great cause for shame, and may well pay tax thru other entities.
A root and branch reform of the system needed however.
Company and trust structures are a blight, where their primary reasons for existence are for diversion of what should rightly be personal income. A more vigorous use of the "part IVa" general avoidance provisions might help.
And I'm almost choking on this, but a shift towards the burden of proof in such instances, to be more on the taxpayer, than at present.
The capital gains tax would be at the top of my list for reform.
The present system encourages investment in speculative assets , rather than productive activity.
Labor's proposed reduction in the discount of some benefit, but a return to the pre Howard/Costello changes, would be better, as any fixed discount introduces anomalies with regard to long term vs short term assets.
This would also have the benefit of reducing the need to reform the negative gearing system, as the major problems with the system , relate to the interactions between NG and CGT. A blanket measure interfering with the claiming of interest against income, risks discouraging investment in productive activity as well as speculative investment.
Housing affordability might also be better tackled by an increased investment in public housing and a decrease in the benefits in the social security system , afforded by home ownership vs renting.
Reversal of the post 60 year old tax free super decisions made by Costello, also a priority.
As I've stated on other threads, however, the franking credit changes proposed by Labor are political theatre, which will just encourage more financial engineering, and distract from meaningful reform.
cheers
Expand
