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
Navigating tax laws for capital gains in 2023
The landscape of Australian tax laws surrounding capital gains is ever-changing, with 2023 being no exception. Read more

Tax saving
What you need to know about the tax implications of crypto
One million Aussies are now invested in crypto, but many have not thought about how these investments will affect them at tax time. Read more

Tax saving
Welfare overhaul could give recipients a leg-up
Australia’s Centrelink recipients who’ve been doing it tough are in for a potentially easier time if the federal government pursues ambitious reforms that could provide sturdier safety nets. Read more

Tax saving
Students should think twice before tapping into their super
Former students might want to think carefully before they look to take advantage of the federal government’s biggest first home buyer incentive. Read more

Tax saving
Advocates call for an end to tax cuts
Social services sector advocates have warned that further tax cuts may make solving Australia’s biggest challenges much harder. Read more

Tax saving
ATO and AUSTRAC may gain new phone-tapping powers
A proposed update to electronic surveillance legislation could see the ATO armed with new powers that would allow the agency to bug phones and intercept online communications. Read more

Tax saving
Over 2m Aussies asked the TPB for help during the last year
As the economy recovers, Australia’s tax regulator says it’s planning to put unregistered practitioners under the microscope. Read more

Tax saving
Will you pay higher taxes due to bracket creep?
Bracket creep will see Australians paying more tax on average, unless further cuts are introduced in the future. Read more

Tax saving
Navigating tax laws for capital gains in 2023
The landscape of Australian tax laws surrounding capital gains is ever-changing, with 2023 being no exception. Read more

Tax saving
What you need to know about the tax implications of crypto
One million Aussies are now invested in crypto, but many have not thought about how these investments will affect them at tax time. Read more

Tax saving
Welfare overhaul could give recipients a leg-up
Australia’s Centrelink recipients who’ve been doing it tough are in for a potentially easier time if the federal government pursues ambitious reforms that could provide sturdier safety nets. Read more

Tax saving
Students should think twice before tapping into their super
Former students might want to think carefully before they look to take advantage of the federal government’s biggest first home buyer incentive. Read more

Tax saving
Advocates call for an end to tax cuts
Social services sector advocates have warned that further tax cuts may make solving Australia’s biggest challenges much harder. Read more

Tax saving
ATO and AUSTRAC may gain new phone-tapping powers
A proposed update to electronic surveillance legislation could see the ATO armed with new powers that would allow the agency to bug phones and intercept online communications. Read more

Tax saving
Over 2m Aussies asked the TPB for help during the last year
As the economy recovers, Australia’s tax regulator says it’s planning to put unregistered practitioners under the microscope. Read more

Tax saving
Will you pay higher taxes due to bracket creep?
Bracket creep will see Australians paying more tax on average, unless further cuts are introduced in the future. Read more