How would you improve the Australian tax system?, page-130

You hit the nail on the head, Dave. If only more people understood what you earn and what you pay on your "taxable income" are two completely different concepts.

It's the bogus deductions destroying revenue streams.

As far as people trying to justify discretionary trusts and other tax minimisation strategies... it's all well and good for those that can utilise them.. but what about your regular payg employee... They don't have the ability to stream their income to minimise tax. They are stung at the gate...

And let's face it, discretionary trusts are primarily about ownership obfuscation. The tax advantages are just a side benefit. Ask any civil law based country about the very concept of trusts and they will tell you one thing... what a sham.

Having worked in this area though, you will never see the end of them. Too many politicians with nice little assets in growth corridors protected by them. Control everything, own nothing.

Good if you are rich, or a drug dealer.