I've been a bit sick and was pondering my next tax return at home. I'd really like to hear peoples ideas for tax reform for individuals (not companies unless you can justify how this will help individuals indirectly).
IMO Australia has an overly complex tax system that is designed to provide equitable distrubution of wealth for national wellbeing, how can we simplify it to ensure it is equitable to individuals (or working familes if you prefer kruddisms)?
I reckon the tax free threshold has experienced too much bracket creep over the last few years and should be more like $10k to give young people a chance to save whilst studying and working part time. Are there huge consequences for this other than redistribution of tax brackets?
IMO The only thing our government should really be subsidising is education and this should not include foreign students, so money should be directed at reimbursment/reduction of the cost of education expenses to the individual, it doesn't work now because everyone claims a whole bunch of self education expenses (due to lack of requirement for reciepts) throught their tax return (this needs to be changed somehow).
Another one that struck me was the ability to claim the cost of preparing a tax return as a rebate (does this not just make accountants rich??). Maybe if the damned thing was not so complex then we would have a chance of doing it ourselves without the fear of the ATO fining us for not getting it right?
That's one of many tax rebates that are used every year by individuals, what innovations would you like to give individuals so they get a fair and equitable share of their hard earned tax?
PS: I am fully expecting rants about CGT and marginal tax rates.