For as long as I can remember, family assistance has been measured by the total family income. Total family income is a guide for all government assessments. So why in a country that should be rewarding families for reducing the burden on childcare, are we assessed individually for tax purposes. Yes, it is our families decision for my wife to remain at home while raising our 3 boys. Yes, I do earn a modest wage. And Yes, we do receive the benefits as a family unit of having a parent at home. Having said that I earn a modest wage though, when compared to a family that has two working parents on a lower wage, and receiving tax benefits and childcare subsidies, it makes me wonder why I am working shift work as hard as I can, to bring home the same family income, when I can do less and be supplemented by the Government. Thus, placing more burden on an already stressed tax system while contributing less. Being able to split a families income, I believe, would encourage more parents to stay at home to look after children due to the working spouse paying less tax and therefore bringing more home in their pay packet each week. The reduced income to the Government by way of income tax surely would be saved by reduced family payments.
GST is the fairest tax that has ever been applied to this country. However, this is a tax that should be raised to at least 15% if not 17.5%. Australia is the home to the "cash society" and tax avoiding schemes/scams (whichever you prefer) of the rich and well connected. The way to capture the tax that is being avoided daily is to raise the GST.
Whenever I employ a tradesman at home or buy goods of a reasonable price, there is always a negotiation for “cash price”. Is it any wonder why so many tradesman live a lavish lifestyle! The simple equation as I see it is…. The people who earn more, buy more expensive items, buy more caviar and Louis Vuitton handbags, Mercedes and Porsches and bottles of Grange. Even if not to this extent, there is a large part of society who do not pay their fair share due to not declaring the full extent of their income. Raising the GST will therefore result in all Australians paying more of their fair share. At the same time as raising the GST, raise the tax free threshold, the age pension and the genuine welfare payments. If done properly, this should result in an offset to the lower earners and welfare recipients for a net zero loss to these people.