The pie chart does not lie: PAYG is the prime revenue source. If management get higher wages... even better as they will be on the top PAYG rate so the government cut will be even higher and the govt can then make welfare payments to those the company has neglected to employ. Seems like a virtuous cycle!
For me the prime concern ought to be where a company hangs onto profits: This would normally be paid out in dividends to shareholders and the government would take a cut there where local shareholders. The problem exists where it is funnelled offshore and from what I can see the Liberals have been moving to plug that as much as possible within acceptable international norms. (the world is run by criminal banking sociopaths after all)
That area ought to remain the focus. Give the companies a tax cut, see PAYG receipts rise, but focus really hard on those companies secreting or diverting profits offshore. Many many schemes there, like a parent company making a large high interest foreign loan to a local company so the profits vanish in 'interest payments' to a parent entity. Clearly GAMING the system.
Both sides of parliament need to see where the real problem is: As usual it is where all the lawyers are and where they have constructed complex offshore entities. Govt should consider blocking all trade and foreign flows with tax havens or jurisdictions that refuse to provide information on corporate structures. Put it in the same basket as terrorist funding and money laundering.
