Last week, Opposition Leader Bill Shorten announced Labor’s plans to limit the amount people can claim against managing their tax affairs. According to Mr Shorten:
Why should someone who pays $1 million to their accountant to minimise their tax for millions more, why should we pay for the double dip.
Firstly, who is this “we” Kemosahbee? And secondly, are there any other costs earning an income that the ALP does not approve of that they will limit deduct-ability for?
Here’s and idea. Let’s eliminate the deductability of union membership and political donations. How about we stop that double dip?
There are many comic dimensions to the the Bill Shorten story, but one of the most amusing is that because he has an MBA (Master of Business Administration), he some how knows something about business. Ha!
If he knew anything about business, he would know that individuals and firms don’t pay accountants large fees because they like the conversation. They do so because of the scale and complexity of the Australian tax system – one of the most complex in the world. It is not about minimising tax you nong. It is about keeping yourself out of jail when the ATO jack boots come a knocking.
They only way you can consider paying accountants and advisors to help manage your tax affairs is act of “tax minimisation” is if you believe that paying anything less than 100% of your income and wealth in tax is minimisation. Oh hang on.
But this is the best bit. The Shadow Minister for not knowing the difference between owning something and holding something for someone else, Dr Andrew Leigh (for a doctor he somehow is) last week announced that a Labor Government would provide funding to:
help Melbournians navigate tax system with tax clinic
Does this mean that the tax system is sufficiently complex that people might need 3rd party help to navigate? What a revelation. If only there was a profession that helped people navigate the Australian tax system.
Shame about the people outside Melbourne who might need help to navigate tax system.