Voters now frightened of mad crazy Labor

[Patriot]

With ScoMo and friends help voters are filling with abhorrence at the prospect of being dragged under and their country ruined by the horrific abomination of a mad as cut snakes extremist Greeny controlled Labor "Govt" which would be the worst "Govt" in Australia's history.

Voters are filled with trepidation as they are made aware of the devastation of Australia which would be caused by Labor's unfunded extremely expensive ridiculous Socialist stupidity and the huge tax increases and insane out of control borrowing which would try to fund these absurdities.

There is a dark cloud on Bill Shorten's Labor horizon and it is ScoMo the Shorty killer.



‘Radical, aggressive and dangerous’: Treasurer warns of Labor’s spending agenda
Samantha Maiden 10:31pm, Jan 21, 2019


Treasurer Josh Frydenberg will argue Labor's policies will set back the country for decades. Photo: Getty

Bill Shorten’s tax and spend platform represents the most “radical, aggressive and dangerous” tax agenda Australia has ever seen, Treasurer Josh Frydenberg will warn in a major speech on Tuesday.

Speaking at the Sydney Institute, the Treasurer will argue that Labor’s unashamed embrace of higher taxes for business will set the country back decades.

Predicting that a Shorten government will be more anti-business than the Hawke-Keating government and the Rudd-Gillard years, Mr Frydenberg will outline the government’s election pitch on the economy.

“What is absolutely certain is that as a nation we cannot afford to fall for the false prophets who would have you believe that a country can tax itself into prosperity, that a government can redistribute what its economy doesn’t produce, and that growth can be achieved while punishing aspiration,” Mr Frydenberg says.

“For Labor, the pursuit of class warfare is more than rhetoric. It is at the heart of their policies from tax to trade to industrial relations. It’s a dark shadow not a light on the hill.

“Labor has ignored the message from the Productivity Commission that our tax and transfer system has been successful in reducing income inequality and that the one constant that matters most in tackling inequality and poverty is having a job.

“Instead, Labor is promising one of the most radical, aggressive and dangerous tax and redistribution agendas Australia has ever seen. Putting at risk our prosperity and harmony and taking us back decades.

“No wonder there is now such a loud and growing chorus of opposition. Australians are starting to see Bill Shorten’s plan for what it really is.”

The Morrison government has spent the summer ramping up its attacks on Labor’s negative gearing policies, a strategy that proved fruitless during the 2016 election.

However, the Treasurer insists the campaign is starting to gain traction.

Foreshadowing the speech, Labor’s treasury spokesman Chris Bowen predicted it would just prove more of the same.

“Josh Frydenberg is giving a speech on the economy tomorrow. It’s his chance to outline his vision for the economy and announce policies to deal with low productivity growth, high household debt and anaemic real wages growth. But I reckon it will more likely say ‘Labor, Labor, Labor’,” Mr Bowen said.

The speech, titled Creating opportunity and encouraging aspiration: The key to a growing economy and a stronger Australia, argues only the Coalition will continue to fight for economic reform.

On trade, Mr Frydenberg argues Labor pandered to union interests when debating the free trade agreement with China.

“It is no secret that our political opponents equivocated on the China FTA, gave up on the TPP, saying it was ‘dead in the water’ and are now threatening to open up settled agreements at the behest of the unions,” he says.

Mr Frydenberg also predicts there are “storm clouds hanging over the global economy”.

“Persistent trade tensions, high global debt levels and a contraction in growth in several key economies has changed the global outlook,” he says.

“Domestically, the drought is having an impact, the housing market has softened, there are signs that credit growth has been constrained and the pick up in wages growth remains gradual.”

In the speech, Mr Frydenberg also makes the case for “Liberal values” on the economy, arguing greater personal responsibility is the key and warning governments cannot fix every problem.

https://thenewdaily.com.au/news/nationa ... ng-agenda/

[Patriot]

Ignoring the worried Lefties anguished cries as they begin to see the insane sickness gripping the Greeny controlled Labor Party.

Now why pensioners HATE the Labor Party who wants to ROB them.

The utter stupidity of Labor telling the extremely damaging to many people unfunded Socialist stupidity they propose smacks of childish idiocy. GetUp! gumphed.

What lo life Labor is up to is squashing SMSFs and trying to move people onto Industrial Super so the unions can pilfer all this new money.



Labor pushes ahead with trust tax
Miranda Brownlee 18 January 2019



Labor’s proposed tax for discretionary trust distributions is shaping up to be a key election issue, a proposal which is likely to impact many SMSFs with unit trusts.

In 2017, opposition leader Bill Shorten announced that Labor would reform the taxation of discretionary trusts to prevent income from being allocated to household members in lower tax brackets.

As part of its reforms, Mr Shorten outlined that Labor would introduce a minimum 30% tax rate for discretionary trust distributions to adults.

Following the release of a report on trusts and the tax system by RMIT University this week, Shadow Treasurer Chris Bowen said that Labor’s proposed trust tax would eliminate “tax loopholes” costing the budget “billions of dollars through tax, avoiding income tax shuffles including income splitting via beneficiaries”.

The report, which was commissioned by the ATO, stated that over the past six years the Tax Avoidance Taskforce had raised more than $1.2 billion in liabilities and collected more than $467 million in relation to trusts.

Participants in the report suggested that reform in relation to trusts could include a withholding tax regime similar to that in place for salary and wage earners, or taxing the trust or trustee as an entity and maintaining the current flow through features of trusts.

Mr Bowen stated that Labor’s reforms to the taxation of trusts was “merely an extension of John Howard’s work as treasurer, in seeking to apply a minimum standard tax rate of 30% to discretionary trust distributions to beneficiaries over 18 years of age”.

Under current law, unit trusts that are wholly owned by an SMSF pay no tax as the unit trust distributes its net income to the SMSF as the unit holder, which pays a maximum of 15% tax on such distributions.

DBA Lawyers director Daniel Butler previously explained that an SMSF would only pay 10% tax on a distribution of a net capital gain from a unit trust after allowing for the one-third CGT discount where the asset was held for greater than 12 months.

“An SMSF in pension phase does not pay any tax from such trust distributions subject to each member’s transfer balance cap limit.”

While Labor has previously clarified that the new minimum 30% tax will not apply to fixed trusts, the majority of SMSFs tend to invest in non-fixed trusts.

“Broadly, trusts are divided for tax purposes into fixed and non-fixed trusts for trust loss purposes under schedule 2F of the Income Tax Assessment Act 1936. Given the strict criteria on what is a fixed trust under this test, most trusts fall into the broad category of a non-fixed trust and these trusts are broadly treated as discretionary trusts for tax purposes,” Mr Butler explained.

Labor could therefore tax SMSFs at a minimum of 30% on trust distributions received from unit trusts that are considered a discretionary or non-fixed trust.

“Labor’s policy has created considerable uncertainty for investors seeking to undertake investments or enter into new business structures given the broad-brush policy announcement,” Mr Butler said.

Treasurer Josh Frydenberg criticised the proposal over Twitter, stating that it would hit “300,000 small businesses with $17 billion on new taxes on trusts”.

“Your idea of fairness is now to hit 2 brothers working in a small family carpentry business making $110,000/annum between them with an extra $15,000 of tax/annum. As the Council of Small Business Australia said [it’s] a case of Labor Party going after hardworking small business because they are a soft target,” Mr Frydenberg said in a Twitter post.


Comments

Grant Abbott 12 hours ago.
I predicted this a while ago. It goes to the policy of making Industry Super Funds the pre-eminent savings vehicle in Australia. When it was mooted a while ago I made submissions that rather than go down a minimum tax route why not treat a discretionary trust like a company so the trust pays 30% tax and distributions have franking credits. Suddenly companies are coming back into vogue. Unit trusts should be exempted otherwise managed funds will get dumped.
   
FAIRisFAIR 12 hours ago.
I'd like to see him get taxed at 90%
 
RichardSuttie 13 hours ago.
Shorten is the most dangerous man in Australia. He will send this country into a massive recession by destroying incentive for Australians to invest. His proposed policies belong in a socialist regime not Australia

Bill Nutton 15 hours ago.
further proof that a Shorten government will cripple small business
   
annoyed 14 hours ago.
totally agree - on 1 side they want us to support our own retirement and not rely on a pension but they take away our ability to do so with these stupid changes

https://www.smsfadviser.com/news/17272- ... -trust-tax

[Patriot]

Gee the scared confused Lefties are swirling around and lashing out at anything that moves.
Labor's dividend plan will smash mum-and-dad shareholders.
Even the superannuated past Labor failures are speechless over Bilious Billy's blunders.



Keating government adviser Vince FitzGerald slams Labor's 'horrible' dividend tax
By John Kehoe Updated 17 Jan 2019 — 5:32 PM, first published at 5:17 PM

Labor's plan to scrap cash refunds for franking credits to low-taxed investors is a "horrible" complication of the tax system that will unfairly penalise self-managed superannuation funds, says the economist who led the Keating government's review of national savings.


Vince FitzGerald slammed Labor's move and said there were better ways to extract more tax from wealthy retirees like himself who enjoyed tax-free superannuation withdrawals.

"We're about to get a Labor government to get this ridiculous proposition that franking credit refunds will be denied to self-managed super funds," Dr FitzGerald said.

Vince FitzGerald says there are better ways to extract more tax from wealthy retirees like himself who enjoy tax-free superannuation withdrawals.
"It amounts to having a marginal rate for a super pension of 30 per cent on the original corporate income from which the dividend comes.

"Even if you're in accumulation mode where you're marginal tax rate is 15 per cent, you're paying double that.

"It will be yet another horrible complication to how super is taxed."

If Labor wins the election, as opinion polls suggest, it plans to stop investors who pay no or little income tax – except pensioners – claiming tax refunds for excess imputation credits for dividends, to save the federal budget about $5 billion a year.

SMSFs with at least one pensioner or allowance recipient before March 28, 2018, will be exempt.

Dividend imputation was introduced by then-Labor treasurer Paul Keating in 1987 to eradicate double taxation. It entitles a shareholder to a tax credit on a dividend which is equivalent to the tax already paid by a company.

The Howard government made the system more generous in 2000 so that if a shareholder had an imputation credit higher than their personal tax liability, the investor would receive the excess credit as a cash refund.

'Unfair and unsustainable'
Labor wants to bring the system back in line with its original 1987 design and has said it gained Mr Keating's endorsement.

Under Labor, franking credits for company tax paid would still be available for shareholders to avoid double taxation.

Shadow treasurer Chris Bowen said: "Politics is about choices. Labor makes no apologies for choosing schools and hospitals over tax concessions that overwhelmingly benefit the wealthy.

"The cost of excess imputation credits will soon outweigh what the commonwealth spends on schools or childcare. That's unfair and unsustainable.

"Ninety-two per cent of taxpayers do not receive excess imputation credits and Australia is the only developed country in the world that allows these credits."

Dr FitzGerald, a former Treasury official who led the 1992 inquiry into national savings for Keating government treasurer John Dawkins, said a better approach to collect more tax on super from the wealthy would be to have tax-free super contributions and earnings so balances accumulate faster, with withdrawals being taxed at marginal rates.

It would tax lower and middle-income earners less and collect a "lot more from well-off people like me" who would be paying the top marginal rate each year on withdrawals.

"That's what most countries do and it's conducive to getting the best result over the long term," Dr FitzGerald said.

"Instead, we've done terrible things and put bandaid on bandaid on bandaid.

"Under my proposed system a government would leave a lot of money on the table for future governments to look after older people."

'Preferential treatment'
Treasurer Josh Frydenberg has repeatedly lashed Labor's plan for $200 billion-plus in tax hikes over a decade.

Mr Frydenberg argues Labor's "retiree tax" will hit 900,000 individuals with excess franking credits and they will lose on average $2200 a year and 200,000 self-managed super funds would lose on average $12,000 a year.

"This is part of Labor's plan for more than $200 billion in additional taxes of people's properties, incomes, business and savings. In contrast, our government will protect the hard-earned savings of Australians," Mr Frydenberg said this week.

Economist Saul Eslake has said Labor's franking policy would reverse a "dumb" tax break for people paying little or zero tax.

"There is always angst when you look to take away a particular group of people's preferential tax treatment," he said.

"People will have to rearrange their financial affairs, but should they ever have had this tax break in the first place?"

Read the rest of Labor's brutal attack on Australians here

https://www.afr.com/personal-finance/su ... 117-h1a6hk

[Patriot]

Labor's insanity is becoming clearer as the murk on it is lifted.




Labor's tax hike costings seem opportunistic
By Noel Whittaker 19 January 2019 — 12:00am

Capital gains tax will be a major topic as we race to the next federal election. Treasurer Josh Frydenberg was on the attack last week, pointing out that if Labor’s capital gains tax (CGT) proposals become law, Australians will be paying CGT at one of the highest rates in the Western world.


Treasurer Josh Frydenberg says if Labor’s capital gains tax proposals become law, Australians will be paying CGT at one of the highest rates in the Western world.CREDIT:MICK TSIKAS

Our top marginal income tax rate is 47 per cent, including Medicare. This means a top-rate taxpayer now pays 23.25 per cent CGT, when the 50 per cent discount for holding an asset for more than 12 months is applied.

Labor intends to raise the top marginal rate to 49 per cent by reinstating the 2 per cent Budget Repair Levy. And to reduce the 50 per cent CGT discount to 25 per cent.

If Labor succeeds in making both these changes, a top-rate taxpayer will suddenly find themselves paying CGT of 36.75 per cent – an increase of almost 58 per cent.

Labor reckons the tax hike is necessary to bring the budget back into surplus and they are projecting a saving to the bottom line of about $12 .6 billion over 10 years. However, like many of Labor’s costings, this one seems rather optimistic.

For starters, they are promising the increased rate of CGT will apply only to assets acquired after the changes become law.

If they do get elected in May, it’s almost certain that the legislation would not be enacted until mid-2020.

Therefore, it should only affect assets purchased after that date.

Next, the discount applies only to assets held for more than a year. So no assets would be affected by the proposals for at least three years from today.

Now think about the type of people who buy investment property, which is where the CGT rate is most important.

One thing is certain – any changes to CGT will be beneficial to shares.

Most are suspicious of superannuation, regard shares as a bit of a punt, and try to secure their long-term future by putting together a stable of investment properties so they can live off the rents when they retire.

It’s highly unlikely that they will be cashing them in any time soon.

There has been a lot of speculation about what Labor’s proposed CGT changes would do to the economy in general, and the housing market in particular. There is no obvious answer.

Given that Labor has promised the tax status of existing assets will be unaffected, there would be no reason to sell assets now and incur unnecessary CGT.

One likely short-term result would be a spate of buying prior to the changes, as investors rush to beat the rule adjustment, followed by a slump.

Certainly, if the rules do change, investors will be reluctant to sell assets purchased after the rule change because the cost of doing so would be much higher.

In any event, I have long believed that tax is just one of many factors that influence investment decisions.

If you can make a great profit now, and you believe the asset has peaked, it still makes perfect sense to reap the rewards immediately and pay whatever tax is due.

One thing is certain – any changes to CGT will be beneficial to shares.

Property and shares are the two major investment assets but shares have one unique asset – the ability to sell in part.

Think of two retirees – one has $1 million in shares, the other has $1 million in two investment properties.

The share investor can sell assets at a slow rate as funds are needed, keeping themselves under the tax-free threshold and will almost certainly pay no CGT.

It’s a different matter for the hapless property investor – they can’t sell the back bedroom, so the only way they can release money to live on will be to sell one of the properties and pay a big chunk of CGT.

https://www.smh.com.au/business/the-eco ... 50rvl.html


COMMENT
Alex G 2 DAYS AGO
Let's fact check the claim that Australia under labor's proposal would pay one of highest rates of CGT in the Western World:

USA: Top rate of 23.8%
UK: Top rate of 28% on property and 20% on all other assets
Japan: Top rate of 20% on assets other than property, property owned less than 5 yrs 40%, property owned more than 5 yrs 20%.
Germany: CGT rate of 26.375% , property owned more than 10 years exempt.
Canada: Top rate of effectively 27% in highest taxing province. Canada has the same 50% discount concept as Australia.
France: To complicated! France even has a wealth tax and various additional taxes, deductions and time frames relating to CGT...

All these countries exempt the primary residence from CGT.

So yes, it is very accurate to say that Australia will have one of the highest CGT rates in the Western World, in fact, at a top rate of 36.75% only one instance, being property held for less than 5yrs in Japan, out of all those countries will Australia be lower taxed. In other words, Labor is proposing to subject Australia to the largest CGT rates in the developed World.

And before I see the usual, 'tax is the price of civilisation' justifications, all those other countries are pretty civilised wouldn't you say? The reason you have the capital taxed at a lower rate is because it recognises that capital creates employment, and equally important the capital gain often does not happen in one financial year like income! The 1 million gain on an investment property held for 15 years didn't happen in year 15, you get my point? It's logical to tax it at, at least, half the rate of income for that very reason alone because we have a progressive taxation system. If that 1m gain was spread over 15 yrs it would be taxed at a much lower rate assuming an average income of the owner.

Anyone that is wondering about how they are going to secure their retirement should think very carefully about supporting a massive increase in CGT. That 1m gain for your retirement is currently taxed at $235,000, Labor's proposal increases that to $367,500. That's real money, that's $132,500 less for your retirement or to help your children.

[sprintcyclist]

That is labours way.

Give other peoples money away.
Tax anyone who moves.
Tax anyone who has any assets.

Tax them all
Give away more money

[Patriot]

The storm clouds are gathering over Labor and Bilious Billy who has the charisma of a used tea bag.

This could be the 'unloseable' election for Labor that is lost... They should walk in, in light of the results of the Banking Royal Commission however...........

Shorten's policy on Superannuation is going to hit hard working people who have provided for their own retirement like a ton of bricks.

Then there is the removal of Negative Gearing in a Housing Market that is in freefall. Did anyone mention the word 'recession'?

There are also extremely worrying signs on how Labor is going to handle the 'Country Shoppers'.

Seems like all they will need is a signed chit from a doctor they'll get in.

[brian ross]

This why the Tories are always losing the public opinion polls, would it?

[Patriot]

Bross is confused by how the Libs control NewsPoll. ScoMo WANTS bad polls to frighten and alarm the apathetic voters to the extreme danger to Australia of a mad as cut snakes Extremist Greeny controlled Labor "Govt" which will be the worst "Govt" in Australia's history.


The BIG question everyone is asking is IF Labor gets in then how many illegal invader boats will arrive in the first year ?



Boats ahoy!!!

Will SHY be the commander in Chief of the people Smugglers again ?

[Patriot]

Prediction of the disaster to come.

Once the Greenies take over control of the Senate they will demand that Labor RESTART the BOATS - just like last time.

The Greenies will also bring back the carbon tax.

Anyone who thinks that Labor will keep any of its election "Promises" is dreaming because the Greenies will change everything to what they want.

Like Gillard was just the puppet of Bob Brown Bilious Billy will be the puppet of Doc Dick.

And if Rob Oakeshott gets in all that will be missing is Tony Windsor.

There is not the slightest doubt that a Greeny controlled Shorten "Govt" will be by far the worst "Govt" in Australia's history presiding over the worst most chaotic brothel ever seen.



The Greeny controlled Labor will EASILY beat this tiny number.




And the Greeny controlled Labor will stick the boot into the hated small businesses with crippling penalty rates that will throw people out of a job.

[brian ross]

Yeah, yeah, bullshit as always, hey? What shame you, like the Tories are going to come down to the ground with a massive thump after the federal election.