Welfare group identifies $6billion in possible theft

AngloSaxon · Mar 13, 2013

Sorry, in the SMH yesterday they wrote this as: "Welfare group identifies $6billion in possible cuts". Meaning cuts to allowable tax deductions and an offset that previous governments have graciously decided we can use to slightly lower our oppression. Sorry, lower our tax. The online version is shorter than the paper version.

SMH: http://www.smh.com.au/opinion/polit...sible-cuts-20130311-2fwe4.html?skin=text-only

Welfare group identifies $6b in possible cuts
Date: March 12 2013

Clancy Yeates

Australia's main welfare group is urging federal Labor to make a $6 billion budget saving by clamping down on superannuation tax breaks, health insurance rebates, and the tax treatment of trusts and capital gains.

As lobbying increases before the budget, the Australian Council of Social Service says it has identified a range of ''wasteful'' spending and tax ''loopholes'' to help fund better services.

The group's chief executive, Cassandra Goldie, said on Monday that closing loopholes that allow the wealthy to pay less tax should be a key priority. ACOSS is arguing some of the money saved should be used to increase the Newstart allowance for single people and increase the payment in line with wage growth, rather than inflation, at a cost of $2 billion.

On superannuation, she identified ''churning'' of income through super by workers over 55 who are paying the top tax bracket. By sacrificing part of their salary into super, then paying themselves an equivalent super benefit, these workers were able to reduce their tax rate without making any additional saving for retirement, she said.

''It's currently very lawful, but it also is not achieving anything other than enabling people to seriously minimise their tax arrangements,'' Dr Goldie said.

ACOSS also said some healthcare rebates had become too generous to people on higher incomes who could afford private health cover. It called on the government to remove the health insurance rebate for ''extras'' cover such as dental and physiotherapy, saying this would save $1.25 billion.

It also said the government could save a further $300 million a year by cutting the medical expenses tax offset, which provides a 20 per cent tax break for medical ''gap fees'' of more than $2060 a year.

Trusts were also targeted by the lobby group. Dr Goldie said trusts were used by people on high incomes to legally avoid tax, and tightening the treatment of capital gains through trusts could save $1 billion in 2014-15.
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So just like Senator Cameron in the other recent thread looking to steal more from us to spend on 'welfare' we have the proponents of welfare looking at more ways to steal our money back from us.

Left out of this online version also was the following ideas of things to 'cut':

* Scrapping deductions for self education "could save $300million a year"

And the 20% medical costs tax offset being described as a "tax break" - what the hell does that mean?

The whole article states this is all aimed at taking money from higher incomes. Well, sorry, I'm on an average income and in my life have used the self education deduction, medical expenses tax offset, health rebate for extras cover, and I plan on using the super treatment described and trusts to raise my savings for retirement. So removing this hursts me, the common man.

And what really gets my goat is what I highlighted in bold. Even more incentive for slouches to never go to work! Because the dole will just be raised to the level of those sucker go getters who actually work for our society!

It makes the blood boil.

rbaggio · Mar 13, 2013

If this keeps up, you will see the current slow trickle of educated, well-paid professionals out of Australia and into Asia, turn into a torrent

Mark my words

JulieW · Mar 13, 2013

Interestingly some research a while back (sorry no link) showed that taxpayers are happy to pay tax when they see positive returns for the tax they pay (e.g. potholes fixed, parks maintained etc) and were prepared to pay tax for 'activities' that they believe should be supported (e.g. support the poor).

What makes them oppose tax and tax increases is seeing their tax dollars wasted on things that have no such observable 'good' (e.g. bribes for political support etc).

wrcmad · Mar 13, 2013

JulieW said:

What makes them oppose tax and tax increases is seeing their tax dollars wasted on things that have no such observable 'good' (e.g. bribes for political support etc).
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As well as increased welfare payments for the pot-smoking, dole-bludging, serial-breeders that live down the road.

Dogmatix · Mar 13, 2013

It's all a bunch of crap, except for this one:

On superannuation, she identified ''churning'' of income through super by workers over 55 who are paying the top tax bracket. By sacrificing part of their salary into super, then paying themselves an equivalent super benefit, these workers were able to reduce their tax rate without making any additional saving for retirement, she said.
Click to expand...

Which i think should be scrapped to make it equitable. But what the Govt do with the 'savings' is another matter.

The whole taxation system is a mess and a joke. The Henry Review proved that the Govt doesn't want to reform it either.

Dogmatix · Mar 14, 2013

The wage growth of the mining sector perhaps? Or just indexed to which ever industry has the highest wage growth at the time. It's only fair after all... :O

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