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Gutbuster: Plan to get Australia going again



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ASSOCIATION FOR TAXATION REFORM WITH

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PLAN TO GET AUSTRALIA GOING AGAIN

FIRST STEP: ONLY AUSTRALIAN CARS ARE TAX DEDUCTIBLE

PLAN TO SIDELINE “O NE NATION” BANDWAGON

A little-known, business based “Think Tank” group has put forward to the government and the Opposition, what it describes as a “GUTBUSTER PLAN TO GET AUSTRALIA GOING AGAIN” as a means of sidelining the ONE N A TIO N bandwagon.

NEED TO REVERSE THE W HITLAM-FRAZER-HAW KE-KEATING INDUSTRIAL SLIDE

According to the Group's chairman, Liverpool Lawyer, John Henshaw. “The plan is about the restructure and regrowth o f Australian Industry and the creation o f employment through a restructure of the Australian Taxation system. Governments, since the Whrtlam Government, have so levelled Australian industry that all that is left in many areas is the playing fields..... whole industries have just disappeared.” He says “ The critical, almost non-existent

state o f Australian industry today, which is the actual product o f these policies, is now being used by the Global Level Playingfield clique (tbe “G.L.P clique”) as a statistical base to justify policies which will put the remaining industries out of existence.”

UNEMPLOYMENT QUEUES THE PRODUCT OF G.L.P CLIQUE POLICIES.

What really concerns Henshaw and his members is that almost none o f our politicians or their economic advisors have ever been in business; “yet they all sprout the philosophies of the G.L.P clique and make decisions putting whole industries out o f business. They take pride in the fact that their G.L.P. policies are encouraged by the multinationals, none o f whom pay

significant tax in Australia, (or anywhere for that matter), and all o f whom embrace host countries with huge unemployment queues. ΓΤ IS NOT A COINCIDENCE that these very queues are the product of tbe G.L P. policies they encourage.”

AUSTRALIAN CONTENT THE KEY TO TAX DEDUCTIONS

The main thrust o f the tax reforms involve the ABOLITION OF TAXATION CLAIMS FOR DEPRECIATON which according to Henshaw “allow our Taxation system to subsidise overseas products”. It will be replaced with three forms o f taxation subsidy on CERTIFIED AUSTRALIAN PRODUCT....(both materials and labour.)

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• MOTOR VEHICLES. Tax deductions only for the certified Australian content (labour and materials) of motor vehicles.

• PLANT AND EQUIPMENT. 50% of the value of certified Australian content o f plant and equipment allowed in year o f purchase only. If plant not competitively available in Australia then 25% allowed in year o f purchase only. • RETAIL DISCOUNT. Discount equivalent to 10% of G.S.T allowed immediately to

retailers against certified Australian content o f goods sold to encourage stocking of Australian goods.

ALL BUSINESS ENTITIES (SOLE TRADERS, PARTNERSHIPS AND TRUSTS) TO BE TREATED AS CORPORATIONS FOR TAXATION PURPOSES.

Gone will be the distinction between the wealthy and the not-so-wealthy. All business entities will be taxed as Companies with the consequence that there will now be only two forms o f taxpayers: individuals and businesses.

FAMILY UNITS (MARRIED COUPLES OR SURVIVING SPOUSE AND CHILDREN) MAY ELECT TO BE TAXED AS CORPORATIONS.

THE CREATION OF A NEW OPTIONAL FLAT SCALE OF PERSONAL INCOME TAX FOR HIGH INCOME EARNERS (No personal deductions, no concessions, no tax-free threshold, pay tax from the first dollar)

EXPANSION OF TAX-FREE THRESHOLD, INTRODUCTION OF GENEROUS FAMILY CONCESSIONS AND BROADENING OF LOWER SCALES OF TAX FOR LOWER INCOME EARNERS. Scales would be designed to force higher income earners into flat tax regime between $55,000 and $65,000. .

MEASURES TO ENSURE COMPLIANCE BY WEALTHY TAX PAYERS (over $5 million in net assets other than family home ) • Wealthy taxpayers would be ASSUMED TO EARN 5% RETURN on value o f controlled assets (other than home) and would be taxed accordingly.

• Appointment o f private firms o f accountants to investigate wealthy taxpayers suspected o f evading tax on the basis o f BOUNTY PAYMENT AGAINST COLLECTIONS.

RESTRUCTURE OF STEEL INDUSTRY TO PROVIDE COMPETITOR FOR B.H.P. • INDUSTRY-BASED FUND TO FINANCE AUSTRALIAN STEEL MANUFACTURING COMPETITOR TO B.H.P BASED AT NEWCASTLE TOGETHER WITH SPECIAL LEGISLATION TO MAKE SURE IT WORKS.

• LABOUR MARKET REFORM ON WHARVES AND IN INDUSTRY BY MEANS OF SPECIAL LEGISLATION

SPECIAL STATUS FOR SMALL BUSINESS • Free up capital raising restrictions on private companies to enable them to advertise for funds and to have unlimited right to approach individuals subject to certificates of independent financial advice

• Invention and innovation taxation concessions to apply ro small business • 5 year Tax credit for 50% o f tax in first two years of small business

CONTACT: JOHN HENSHAW, 95 MOORE ST. LIVERPOOL 2170 PHONE.02 9601 3111, fax. 02 9821 1608, A.H PH. 02 4227 4670, fax 02 4227 6909 6 page brief available on request.