-Cut immigration and wages will go up. -we are globalised via our FTAs -according to the Government if we increase wages inordinately , we'll be less Globally competitive (ScoMos case in the Fair Wage Tribureral last Month) -therefore if wages go up we'll all be less wealthy over time because our national wealth if fairly distributed impacts us all.
Therefore If, as I propose above, that the Government offers workers a $60K tax free income treashold (not the $18,200 now) then this will effectively increase the average take home pay by $10K P/A and that could be effected forthwith.
Of course that is if take home pay is the issue. Its just all about carving up the national wealth pie which the Government is already doing via taxation policy etc, not inventing another wheel.
The only logical arguement about this proposal is that it may over time adversely effect the overall economy but as I have proposed above , the stopping of immigration will also negatively impact the overall economy over time. And to be scientific about it, one proposition has just as much merit as the other, IMO.
Now you might ask , do we have a country in the world which like Aus that is resource rich which has at least a $60K P/A tax-free treashold for working income earners (NB I said 'Working). and the answer is yes, Saudi Arabian working citizens (not guest workers) pay no income tax. Perhaps there are more?
"There is no personal income tax in Saudi Arabia. A flat income tax rate of 20% is applied to the tax-adjusted profit of resident non-Saudi and non-GCC individuals" (wikipedia)
PS: IMO there should be different tax scales for income earners by a working PAYE taxpayer than on income earned by dormant investment (eg: shares, property investment etc) with the former being lower/not higher
In fact the opposite can be true due to the capital gains & franking credits tax concessions.
