The ASX supplies the ATO with a summary of EVERY trade from EVERY day.
I cant even match up my own trades. ATO have no chance. Most are caught when they are audited. Alot get away with it unfortunately. I think one of the major problems is the tax rate, its damn high by any standard.
Also the mechanism of calculating tax based on earnings in a given year is unfair. You can struggle for 10 years and then strike it lucky one year and pay 50% tax. If that profit was spread over 10 years you would pay significantly less tax.
The best solution at the moment is to open up your own superfund. 15% tax maximum (10% if investment held for a year or more). Problem is you then cant acccess that money until you are 65, although you can buy and sell all sorts of investments for wealth creation. The other problem is who knows when the government will change the super rules AGAIN. Talk is that labor is eyeing off major super reform. The reality is the richest pay the lowest percentage of tax through these methods.
