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Articles on Tax

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Dairy cows at a family farm in Chilliwack, B.C. Sylvain Charlebois, a noted academic on food policy issues, says the federal government’s proposed tax reforms will hurt family farms. CANADIAN PRESS/Jonathan Hayward

Down on the farm: tax reforms will hurt family businesses

Family farms, restaurants, other food businesses and the rural economy will suffer under federal tax proposals for small businesses,
Anyone can use a discretionary trust but the beneficiaries of trusts are usually all part of the one family or extended family. Joel Carrett/AAP

Family trusts often cause more harm than good

Overwhelmingly, trusts are used to minimise tax, avoid paying creditors and to avoid the fair division of property after a relationship breakdown.
Applying the GST to bank products and services would increase costs for consumers but reduce distortion in our economy. Sergio Dionisio/AAP

A better alternative to levying the bank tax

Applying the GST to banking has much sounder economic underpinnings than the current levy, would have raised much more revenue, and would have applied to all banks rather than just the big banks.
Because the threshold for the Medicare levy exemption is based on family income, the reform will reinforce the move towards higher effective tax rates on low income second earners in a family. Joe Castro/AAP

Shifting the tax burden to middle-income earners will undermine jobs and growth

With its recent budget changes, the government is proposing a rise in marginal tax rates across a wide band of middle incomes and a marginal tax rate cut for the top.
With high capital costs linked to petroleum and gas infrastructure, collection of PRRT funds for regional development may be delayed for several years. Phil Noble/Reuters

Government’s oil and gas tax response will leave regional communities at a loss

Local communities are likely to be dissatisfied with the report from the PRRT review because its recommendations only apply to future projects and won’t herald any changes in the budget.
If Australia adopted a similar approach to the Hong Kong to eliminate debt loading abuse, United States oil and gas giant Chevron would have been denied A$6.275 billion in interest deductions. Ray Strange/AAP

Chevron is just the start: modelling shows how many billions in revenue the government is missing out on

New modelling shows governments need to ensure that corporations benefiting from the use of Australia’s resources, are contributing the same as they do in other jurisdictions.

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