ATO tug of war

The good, the bad and the ATO

Kevin Young Insights 0 Comments

As property investors, if we don’t pay any income tax (due to negative gearing) are we bad Australians or good Australians?

I believe we are good! Why? Because the Government encourages people to not pay tax, instead creating real jobs and real tax payers. Yes.

So what have Kathy and I and Property Club achieved just in the last twelve months alone in reaching the government’s aim?

All together we’ve settled nearly one thousand properties! These had to be built by tradespeople – creating five thousand full time jobs, and these 5000 full time tax payers contribute to the ATO coffers.

The trickle-down effect is understood to be half of this, so another two and a half thousand people are employed because of Property Club members’ investments – and these people are paying PAYG tax back into ATO reserves.

Next, because of Kathy and I and Property Club, these people spend their money.  These seven and a half thousand people spend their money creating GST income that goes into State coffers.

The one thousand properties that have been built, have been sold – and the State governments receive a further 5% of the purchase price in stamp duty. So another $25 million goes into State tax coffers – all because of Property Club investors.

Clearly, the Government doesn’t need more money from us. This is money that we can’t spend. Taxing us will only stop us creating yet more jobs. They want to increase the GST and don’t realise the same thing will happen. They will take money out of our pockets that we can’t spend. And real jobs won’t be created.

What if taxes were abolished?

How is this for an idea? Abolish GST, all income tax, all company tax, all state and federal Government licensing fees, all import duties and instead, from every dollar that is deposited into a bank, one third is allocated by the bank to be sent directly to the Federal Government. Our bloated banks, free of charge, would then replace the hundreds of thousands of tax collectors across State and Federal agencies. Multi nationals couldn’t transfer their profits. If they receive the cash here – they pay here!

There results in more certainly.  Surely this is enough to help the government tax coffers both State and Federal?

 Do you trust politicians on GST?

The media is full of speculation and arguments in favour of increasing the GST.  Are you?

Before the GST came in last time a lot of promises were made.  The average tax PAYG was 37% and the Government promised to bring this down to an average of 32% post GST.

What is it now? 32%? No, it is now up to 35%, yet we are still paying the same 10% GST.  You were also promised that you wouldn’t pay stamp duty when you bought a property or shares.  Due to pressure from the banks they stopped the stamp duty on shares but have ignored our cries to eliminate stamp duty on property.

For me – I am tired of Government greed.  Let them use what they have got more efficiently – like you and I have to do.

Regards,

Kevin Young

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