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Tax Reform
The existing taxation system utilised in Australia is an extremely large and ever changing process that requires specialist knowledge to apply it correctly to best serve each individuals needs. We seek to simplify and rationalise this system in general.
To fund the proposed changes to our methodology, our structure, and our future development as outlined throughout this entire document, it is proposed that we decide upon equitable methods of taxation and revenue - to assign an equal and fair single taxation onus upon all citizens and companies - with no exceptions.
A single flat percentage rate of taxation based directly upon profit or income (POI) is proposed to be applied unilaterally. This taxation will apply to all individuals, companies, and corporations that operate and trade in Australia without exception. It is intended that this new method of taxation replace ALL existing added taxes, charges, and levies that currently apply.
Significant rises to the tax free threshold would apply to reduce the taxation burden on the lowest earning Australians.
This tax will apply to all citizens and companies earning more than the respective minimum income thresholds, and will take into consideration permitted exemptions based on expenditure incurred in the creation of this income.
Further discussion and evaluation will be required to determine the exact figure to be used, however initial assessment would indicate a figure of approximately 10 - 15 % would be appropriate.
EAP support a change of property gearing laws to better assist more individuals to own their own homes by transferring the current negative gearing laws to apply to your primary residence rather than to investment properties. A progressive change over a transition period would be introduced to allow those with negatively geared investment properties adjust their structure without undue financial stress.
A gradual transfer of 20% deductability per financial year would commence immediately allowing for a 20% deduction on primary residence interest payments (PIP), and a 20% reduction against investment properties (IIP) leaving 80% of interest payments claimable ... this would continue over 5 years until completed.
i.e. Year 1: 20% PIP - 80% IIP, Year 2: 40% PIP - 60% IIP, Year 3: 60% PIP - 40% IIP, Year 4: 80% PIP - 20% IIP, Year 5: 100% PIP - 0% IIP
Assistance to families with school aged children will also improve under our proposed tax reforms.
Qualifying educational and related expenses for primary and secondary students would be tax deductible to an agreed threshold. This would be introduced immediately.
Costs that qualify would include: Compulsory contributions, uniform costs, text books, and required equipment.
Voluntary contributions would also qualify up to an agreed threshold.
Significant increases will be made to the manpower and funding required by the Australian Tax Office to ensure that businesses and individuals alike pay the full and fair taxation due to the Australian Economy.
This increased policing is primarily aimed at ensuring multinational businesses that generate significant income within Australian borders are paying a full and equitable level of taxation based upon the total profits earned within our borders.
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