Taxation reform
The Australians Unified new tax policy aims to empower workers, boost business productivity, ensure fairness, and prevent the leakage of profits offshore. It is presented as the most comprehensive plan by any political party in Australia.
The policy focuses on seven key areas of reform:
- Reducing Income Tax for Low and Middle-Income Earners
- Simplifying Superannuation
- Preventing the Erosion of Profits Offshore
- Streamlining Corporate Tax
- Reforming Capital Gains Tax
- Abolishing Inefficient Taxes
- Strengthening Australia’s Tax Base by Closing Loopholes
- Raising the GST Reporting Threshold
- Introducing Income Splitting for Families
- Reducing Negative Gearing on Residential Investment Properties
At its core, the policy is committed to providing significant tax relief for low and middle-income earners, who form the backbone of the economy. By addressing critical issues such as capital outflows, compliance simplification, and housing affordability, the plan seeks to restore equity in the tax system and ensure that wealth generated within Australia benefits its citizens. This comprehensive reform strategy envisions enhanced economic sustainability and aims to safeguard the nation’s prosperity for future generations.
Lpower Income Tax
We are committed to supporting everyday Australians. Our first priority is raising the tax-free threshold from $18,200 to $45,000, This policy to be mandetory for every industry
Removing Payroll Tax
We will work with state governments to abolish payroll tax, ensuring no state is financially disadvantaged. In its place, a 1.5% stamp duty will be introduced on share purchases, share lending, and unhedged derivatives, including short selling. This change will reduce the tax burden on businesses while discouraging unnecessary speculation.
Strengthening Australia’s Tax Base and Closing Loopholes
To ensure the sustainability of Australia’s tax system and prevent tax avoidance, the Australian Unified is implementing comprehensive reforms to close existing loopholes and ensure fair tax contributions. The following measures will be enacted:
1. Eliminate Withholding Tax Exemption on Foreign Bondholders: We will abolish the withholding tax exemption on interest paid to foreign bondholders purchased by public offer (S128F 1936 ITAA). This change will ensure that interest payments to foreign investors are subject to withholding tax, preventing the erosion of Australia’s tax base and ensuring that foreign bondholders contribute their fair share.
2. Abolish Corporate Interest Deductions on Untaxed Foreign Income: The current provision allowing Australian corporations to deduct interest incurred against foreign income that is not assessed in Australia (S25-90 1997 ITAA) will be abolished. This loophole has enabled companies to reduce their tax liabilities on earnings that are not taxed domestically. By closing this loophole, we aim to ensure that all income, whether domestic or foreign, is taxed appropriately, enhancing the fairness of our tax system.
3. Levy on Foreign Student Fees or Visas: A new constitutional levy will be introduced on university fees or visas paid by foreign students. This levy will ensure
that foreign students contribute fairly to Australia’s education system, reflecting their use of local resources and services while studying in Australia.
4. Remove Tax Exemption on Native Title Payments: The tax exemption on mining and native title payments to Indigenous holding entities (S59-50 and S59-15 1997 ITAA) will be abolished. This measure will ensure that all entities, including Indigenous holding entities, are subject to tax on these payments, ensuring equity and fairness within the tax system.
10. Cap Negative Gearing
Negative Gearing on Residential Investment properties will be capped at $5,000 per person.
Streamlining business compliance and costs
People First will lift the GST reporting threshold from $75,000 to $250,000 so that small businesses with a turnover less than this are not burdened with cumbersome red tape such as lodging quarterly BAS.
Preventing the Erosion of Profits Offshore
Higher Withholding Taxes on Offshore Profits
We will raise the withholding tax rate on profits transferred to treaty countries to 20% and on interest income paid to all countries to 30%. This will prevent capital from leaving Australia and ensure that profits generated domestically contribute to our economy, rather than being funnelled offshore.
Additionally, an operating profit ratio test will be introduced to further strengthen transfer pricing rules and prevent the leakage of profits abroad.
Reducing Corporate Tax and Replacing Franking Credits
Australia’s corporate tax system will be simplified. The corporate tax rate will be lowered to 25%. In place of franking credits, we will introduce a non-refundable
rebate of 15% for all taxpayers, or a refundable rebate of up to $10,000 for low-income earners.
While this may appear to be a tax cut, it is expected to be revenue neutral, as the decision by Peter Costello to refund imputation tax credits has resulted in significant tax erosion. Estimates vary, but Australia’s net company tax rate is closer to 15 per cent and is expected to decrease further. This is because when the decision was made to refund franking credits, superannuation had $500 billion in funds under management. Today it has $3.5 trillion in funds under management and is expected to reach $10 trillion before 2050. Paying 30 cents at the company level, only to refund half of that, creates unnecessary paperwork for the company and shareholders and is eroding the company tax base.
5. Abolish Capital Gains Tax (CGT) Exemptions for Foreign Investors: The CGT exemption for foreign investors holding portfolio interests in non-real assets (S855 1997 ITAA) will be removed. This change will ensure that foreign investors are subject to capital gains tax on their investments, contributing fairly to Australia’s tax base and helping to address the imbalance between domestic and foreign tax contributions.
With over $3 trillion in superannuation, Australia does not need to provide tax exemptions to foreign interests to “attract capital.” The most sustainable form of capital is the type derived from Australian earnings. The words of our National Anthem reflect our values: “wealth for toil,” not “wealth for foreign capital.”
GST Collection hand back scheme
Raise GST to 12.5% and provide suppoet for pensioner and students, Year Returm of gst to pensioners to give them more money in the pockets. Students and Claim back there GST which will be given back to them to pay off there Hecs debt.
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