The Board has received the following suggestion during the course of its consultations.
The current provisions around excess superannuation tax are bureaucratic and cumbersome especially for non-executive directors with the decision to include death and disability insurance in the superannuation contributions cap.
There seems to be some outdated exclusions as to what is included as OTE
1. Make-up payments for Jury Service are not included in OTE for SG purposes, disadvantaging employees when they are compulsorily attending Jury service
Recommend Private Health Insurance rebate percentages be adjusted, if necessary, as at 30 June each year rather than current onerous 31 March, to reduce the unnecessary volume of extra information processed in almost every personal income tax return!
Recommend the Department of Health (or those responsible for the related legislation) be reminded of our financial year end date , being 30 June, so they can align their decision-making effective date to help simplify the entries in millions of Australian personal income tax returns every year! Thank you.
There is no apparent policy basis for the $250 reduction in the claim for the self-education expenses. Section 82A ITAA36 creates a set of comparatively complex rules and definitions that impact on the deductibility of self-education expenses. The view is that these rules achieve nothing apart from added complexity.
Intent:
Income derived from goods and services provided in Australia are taxed in Australia.
How:
1. Company tax is either (choice is made by the Company) paid on revenue (at a low rate, say 1%) or profit (at a higher rate, say 30%).
2. Deductions are only allowed for domestic goods or services.
Impact:
1. Foreign companies will create domestic companies (“Domestic Shells”) to service other domestic companies so that those domestic companies can get a deduction (otherwise the domestic companies wouldn’t buy the good or service).
In the future taxation revenue may be down due to less manual workers and more automated robotics taking over blue collar jobs. Inevitably more people will be out of work and there will be greater dependancy on government services with potentially less revenue coming in from employee PAYE contributions. I propose to offset some of the lost revenue that the government introduce a automation taxed, where robots would be taxed in a similar fashion to humans according to the wage standards of the jobs they have replaced. Productivity will increase but revenue will not be as greatly affected.
Under current arrangements shareholders of listed companies are asked to provide their TFN to the investee company. If shareholders do not provide their TFN, the company must withhold tax at the highest marginal rate on any non-fully franked dividends paid to these shareholders.
In a demerger situation, the demerging company is not permitted to transfer the TFN of a shareholder that will also have or has a shareholding in the resulting spin-off company. As a consequence, the spin-off company must ask each shareholder to provide their TFN.
My idea is for a tax system that makes it easier for sole traders and small businesses to pay their taxes as they go without the worry of larger quarterly instalment bills and or large tax return bills. What I would like to see is a simple tax bracket system based on earnings as you go rather than predicting your future earnings which may not be accurate.
The Board has received the following suggestion during the course of its consultations.
I can not understand why a logbook is assigned to a car, rather than to an employee.
Eg Salesperson uses car for 6mths 90% business, then admin person uses same car for 6mths at 10% business.
Why do we not simply address the provision of each benefit to each employee based on the actual %?
By having to apportion/average the % it is unfair to the salesperson/inappropriate for admin person.
Then it gets more crazy, as the salesperson/admin does not mind as there will be no RFBT as it is now shared/pooled car.