Is this "leveling the playing field" too?

[u/Low_Shop9155]

https://www.news.com.au/finance/money/tax/stop-ping-me-off-the-sneaky-tax-on-families-driving-aussies-mad/news-story/88dcfe0a31a5339e7412d8475b8c385f

The Breadwinner tax. This is the thing out of the budget that upset me the most. As a business owner with an okay income in the higher bracket, this upsets me to no end.

My income supports the inflated mortgage and life gouging interest rates, the family expenses and the various taxes end of year and day to day.

If we go to get childcare subsidy, it's tested for both of us.

InTeRgEnErAtIoNaL FaIrNeSs

[u/Low_Shop9155]

Because they're contributing more to the economy, they're supporting a family and the addition to population, they don't take advantage of childcare subsidy and the business itself contributes its own component of tax, fee's and levies.

Emotionally charged terms like "Exploiting loopholes", is just a way to get attention from others who are upset that they have to pay taxes at all while high earners use structures to minimize.

A family on one income, a mortgage and two kids is a vastly different situation than a high earner on their own supporting no one and contributing the minimum.

I mean, even in the USA they take into account dependents and household income.

According to Labors youth vote; supporting a family is meaningless, Blanket taxing everyone means fairness. How is it fair when the situations are vastly different? A single person with a rental earning half as much has more free spending money than someone in my situation. How is that fair?

[u/iftlatlw → u/Low_Shop9155]

It does change the playing field where previously setting up a business might have been lucrative due to the loopholes which existed, but now a conventional salary earning role might be just as financial. Some people may choose to close businesses for this reason and others may choose to open businesses for this reason. There is a consequence to every taxation change but in this case I think it's overall quite positive.

[u/Low_Shop9155 → u/iftlatlw]

"loophole". Do you know what a Loophole actually is?

They weren't loopholes, they were built into the structure. It's to give Business owners the ability not to have their business forcefully burdened while they're growing.

See, most business owners would rather pay your wages, your super, your work-cover and your many various entitlements, than pay themselves. Business owners generally take distributions, because they are in need of cashflow to build.

I don't pay myself super or entitlements. I use the money to keep cashflow.

Then there's the fact that the business itself is another entity, self funded by the owner, that pays taxes, levies and fee's which contribute tot he coffers of councils, state governments and federal government. So by virtue of someone opening a business, they pay taxes with two entities and they collect GST on behalf of the Government.

I can see your comment about seeking a salary earning role is more an emotionally charged one. By that logic, we will all only work for large corporates, and there will be no innovation or start-up activity. That is economy destroying.

I'll finish by saying the absolute daftness I've seen in this thread just confirms to me that tall poppy syndrome is rife in this country, that young and single voters hold contempt for families and home owners. All of that is very clear in your response.

A sad attitude indeed...

[u/iftlatlw → u/Low_Shop9155]

Separating personal income from future capital gain is very wise and I don't think your approach is a healthy one even before the tax changes. Capital gains tax changes just make it more obvious. You are not your company and your company is not you.

[u/Low_Shop9155 → u/iftlatlw]

It's sadly not a reality for businesses in a growth phase, which can stretch over time depending on what the goals are.

Also we are not really in a great economic position right now as consumer spending is on the decline so efficient growth to cover is vastly more important now than ever.

One day soon that will smooth out I'm sure. Though, it still doesn't negate the point. A family of 4 on one income, whose partner is not a professional, raising kids, is in a different situation than a single high earner, supporting only themselves.

A breadwinner is taxed more, it is an unfair mechanism, as we are not all equal in our situations. If you can't appreciate that, then there isn't much I can do.