Save
Is a tax system which pleases both Boomers and Millennials possible?
It is possible to build a tax system that caters to both Baby Boomers and Millennials, and in doing so, a wealthier nation, an investment manager has said.
Is a tax system which pleases both Boomers and Millennials possible?
It is possible to build a tax system that caters to both Baby Boomers and Millennials, and in doing so, a wealthier nation, an investment manager has said.
Speaking to Nest Egg, Montgomery Investment Management chief executive Roger Montgomery said Australia’s budget issue has less to do with excess dividend imputation credits and more to do with the amount of revenue generated.
He argued that adding value to Australian exports, and increasing investment in new businesses, is the way towards a wealthier country, instead of scrapping cash refunds on excess dividend imputation credits as Labor has proposed.
Responding to questioning around the inheritance of wealth in the wake of the proposal, Mr Montgomery said the issue is that while capitalism is by far the best system, over time it facilitates the concentration of wealth.
Nevertheless, he reinforced, that’s no reason to target older Australians’ wealth.
Instead, Mr Montgomery proposed: “I think what we [should] do … is give Millennials a tax holiday to start businesses. It's really simple. You just say, 'Hey, if you've got a good idea for a business, you don't pay tax on your first $300,000 profit for the first three years'.
“'You can go and hire other Millennials and off you go, go for your life, start businesses, be entrepreneurial, get going'. That’s allowing capitalism to do its job.”
Speaking more broadly, he said Australia needs to add more value to its exports, offering the example of how Australia sends out seven or eight tonnes of iron ore in order to be able to afford to import one iPhone.
“That's not sustainable. It is crazy. What we need to do is add value to our exports, and the way to encourage value-added exports is to incentivise people to start new businesses that specialise in adding value to exports, and incentivising them through more favourable tax treatment,” Mr Montgomery said.
“If we do that, we'll be a wealthier nation and these other debates that we're having really just fade into the background.”
He warned that simplifying the tax debate to just dividend imputation reform and therein igniting a battle between the generations is bad for both generations.
Tax saving
Why fast-tracking tax cuts won’t stimulate the economy
Treasurer Josh Frydenberg has flagged that previously legislated tax cuts could be moved forward in a bid to help stimulate the Australian economy. ...Read more
Tax saving
Last-minute items to check off before 30 June
With the end of the financial year almost here, an accounting firm has outlined key changes with tax returns this year and flagged some last-minute tax strategies to consider before 30 June. ...Read more
Tax saving
Australia’s richest owe the Tax Office $772m
Australia’s elites and private companies fell $772 million in taxes due to miscalculations and deliberate tax avoidance, the Australian Taxation Office has revealed. ...Read more
Tax saving
Do you have to pay taxes on a trust?
Trusts are usually set up for business, estate planning and investment purposes to separate the legal and beneficial ownership of assets held within the structure. ...Read more
Tax saving
Government rebuffs regional allowance and tax concession reform
A review’s findings into the viability of area tax concessions and payments for regional and remote Australians has had its recommendations shut down by the same government who requested the report...Read more
Tax saving
Penalties for tax fraud in Australia
Public taxes are used to fund government projects in relation to health, defence, infrastructure and many other national and local projects that require public funding. ...Read more
Tax saving
Disaster relief payments receive tax-exempt status
The Australian government has made disaster relief payments to bushfire-affected individuals and businesses tax-exempt while extending tax-free financial support to NSW Rural Fire Service volunteers. ...Read more
Tax saving
Are your franking credits working?
Here’s what you need to know about franking credits and how they work. ...Read more
Tax saving
Why fast-tracking tax cuts won’t stimulate the economy
Treasurer Josh Frydenberg has flagged that previously legislated tax cuts could be moved forward in a bid to help stimulate the Australian economy. ...Read more
Tax saving
Last-minute items to check off before 30 June
With the end of the financial year almost here, an accounting firm has outlined key changes with tax returns this year and flagged some last-minute tax strategies to consider before 30 June. ...Read more
Tax saving
Australia’s richest owe the Tax Office $772m
Australia’s elites and private companies fell $772 million in taxes due to miscalculations and deliberate tax avoidance, the Australian Taxation Office has revealed. ...Read more
Tax saving
Do you have to pay taxes on a trust?
Trusts are usually set up for business, estate planning and investment purposes to separate the legal and beneficial ownership of assets held within the structure. ...Read more
Tax saving
Government rebuffs regional allowance and tax concession reform
A review’s findings into the viability of area tax concessions and payments for regional and remote Australians has had its recommendations shut down by the same government who requested the report...Read more
Tax saving
Penalties for tax fraud in Australia
Public taxes are used to fund government projects in relation to health, defence, infrastructure and many other national and local projects that require public funding. ...Read more
Tax saving
Disaster relief payments receive tax-exempt status
The Australian government has made disaster relief payments to bushfire-affected individuals and businesses tax-exempt while extending tax-free financial support to NSW Rural Fire Service volunteers. ...Read more
Tax saving
Are your franking credits working?
Here’s what you need to know about franking credits and how they work. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
