The US federal government imposed the first personal income tax, on August 5, 1861, to help pay for its war effort in the American Civil War – (3% of all incomes over US$800). It was only in 1894 that the first peacetime income tax was passed through the Wilson-Gorman tariff. The rate was 2% on…
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Paying our legal taxes is a small price to pay for the benefits we enjoy in a privileged, prosperous, and safe society such as Australia. The great majority of taxpayers, individual and corporate, pay their taxes voluntarily and in accordance with the law. Smart taxpayers focus on maximising their legal tax savings whilst ensuring 100%…
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Illegal tax saving strategies damage the fabric of society and Government policy is clearly to minimise or eliminate them. If tax avoidance is left unchecked, the perception of unfairness has the potential to undermine the voluntary ethic in the broader tax system. Every accounting practice in Australia will have at least a couple of clients…
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The English navigator James Cook became the first European to map the east coast of Australia in 1770 and a First Fleet of British convicts followed to establish a penal colony at Sydney in 1788. When the first Governor, Governor Phillip, arrived with the First Fleet he had a Royal Instruction that gave him power…
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As the well-known Australian billionaire media magnate Kerry Francis Packer once said in reference to the Australian government, ‘Now of course I am minimising my tax and if anybody in this country doesn’t minimise their tax they want their heads read because as a government I can tell you you’re not spending it that well…
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Income tax was first implemented in Great Britain by William Pitt the Younger in his budget of December 1798 to pay for weapons and equipment in preparation for the Napoleonic Wars. Pitt’s new graduated (progressive) income tax began at a levy of 2 old pence in the pound (1/120) on incomes over £60 (£5,696 as…
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Willie Hugh Nelson (c1933-) is an American musician, singer, songwriter, author, poet, actor, and activist. The critical success of the album Shotgun Willie (1973), combined with the critical and commercial success of Red Headed Stranger (1975) and Stardust (1978), made Nelson one of the most recognized artists in country music. He was one of the…
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The Commonwealth Treasury’s 2016 Tax Expenditures Statement (published in January 2017) shows Australia’s ten most expensive tax breaks are: Main residence exemption from CGT: $61.5 billion. Concessional taxation of superannuation earnings $16.9 billion. Concessional taxation of superannuation contributions $16.9 billion. CGT discount for individuals and trusts $9.6 billion. GST exemption for fresh food $6.9 billion.…
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The first income tax is generally attributed to Egypt where the Pharaoh’s collected taxes from their citizens to fund grain warehouses, building projects (including the pyramids) and local armies. Like today, the taxes were used to stabilize and enrich society. The taxed grain was stored for distribution in times of hardship, used to feed…
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Talk to anyone in the accounting industry and it’s very apparent that compliance fees are falling (and will continue to fall year on year). Rob Nixon in his book Remaining Relevant, has predicted that compliance prices will plummet by 50% or more within 5 years. His predictions may turn out to be very conservative as…
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"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2