Australian Taxation System - Essay Example

Name Students No Tutor Date Taxation is the process of raising money for the government through the inclusion of certain amounts of fees on goods and services in a country. The money collected from taxation becomes revenue for a given government. Redistribution of wealth though indirect is also another task of taxation. Representation of citizen, too, grows from taxpaying. This money is then allocated in the national budget for the execution of its tasks to the people. In Australia are many types of taxes. They have been estimated to be around a hundred and twenty five. This paper is an analytic conjecture into the nature of these taxes. In the daily parlances, everybody seems to talk about them, yet few people understand the real nature of these taxes. Through the different articles collected from different newspapers, it will be easy to see the real meaning of the term tax and taxpayers and whether some utterances about these taxes are warranted or not. A report by the Adelaide Now newspaper had business group calling for the overhaul of the taxation system. The group called for the sale of assets belonging to the government. The money was to be spent on the various public works that were necessary. They claimed that was the only way to raise the living standards of the Australians. The privatization was being pushed because the government did not need owning of such structures and the money was an asset for building investment with the business world. The money as seen by the group was going to be used in strengthening foreign investment which was vital for the growth of the Australian economy.1 This move was good but was quite unwarranted because the most basic thing that is necessary in Australia is the managing of the tax collected and not privatizing the public property In a plea to have equality among citizens, the city council was moving towards the inclusion of tax on shopping centres located in the suburbs. The councillors voted in support of the move. This meant that the owners were to pay seven hundred and fifty dollars for every year and space. This was going to be even more for the shoppers who would stopover for their own shopping. The tax was going to apply only to large suburban carparks of which will be different from that of the street parking in the streets. It was to apply to off-street carparks which had twenty five spaces so that impact on small business may be reduced. It was going to apply to any unused land and buildings and which are used as temporary carpacks in order to effect the development of the sites. Still, it was to apply to city council area that was to include the northern part of Adelaide. Short-term parking will attract a low fee. The amount to be collected was to amount to around twenty six million dollars every year. The amount collected was suggested that it will be managed by a committee just like that of Perth. The precision on the matter was going to depend on the opinion of the citizens to implement the best mode.2 In February year, there were protests against the raising of tax by the government. The state treasurer was warned against the raising of tax in the federal budget that was expected this year. The opposition was claiming that the labour government was planning to raise the tax to be able to fulfil various promises on spending. Some of these are the National Disability Insurance Scheme. This was seen as creating uncertainty for business as well as consumers making them to plan their personal budgets. Treasurer Wayne however, in an interview told the nation that the tax was not going to rise; everything else was speculation by people and was unnecessary. He observed that those who were looking for income tax increments were the liberals. Wayne had observed that the tax cuts were to be imposed on the carbon tax which opposition leaders wanted repealed. He also advised that the government was going to make sure that the tax was monitored and deducted wisely. He even promised a budget surplus in the coalition’s government.3 This is an explicit apologist argument by the treasurer. The first thing to notice in the treasurer’s words is first the defence of the government. He wants to defend the government without putting into informing how the government will balance itself with the plan to increase carbon tax which was to be removed by the opposition. In an article by Jessica Irvine, the government was urged to reassure the people on the changes that had been made to superannuation. Irvine wanted the government to explain how superannuation was taxed. Irvine explained that Australia did not tax people at the time of retirement but at the beginning when they begin earning. Nine percent, she explained was taken by the tax office. The superannuation for Irvine is simple but sometimes unfair because it depends on ones saving. If a person earns a low income, then the superannuation is lower.4 In other words despite the fact that some money goes to the revenue and represents every citizen, it does not really effect a good redistribution. This however, accentuates with Osborne’s views when he claims that the government will monitor effectively the public finances and consider deducting the taxes for and ease the burden on the people.5 In January, a the labour party was promising to make amendments to the tax by cutting the superannuation budget by around five hundred dollars for over three million low income earners. This meant he will cut it according to their need compared to the rich and make it fair. The superannuation was one of the taxes which had been stiffened by the coalition’s government6. However, despite the fact that the opposition leader was promising glorious things, he fails to inform how that will happen without having effect on other taxes. Since this is a time of campaign, it can be a way of getting a ticket to the top job and then fail to implement anything. However, in another article by Martin & Hurst in the Daily Herald it was said that a legislation of the super with high charges was because old-age comes with increased medical care so it is hard to make cuts on it.7 In another article dated March 26th, Jessica Irvine discusses the challenges facing the labour government in realizing its target. Many people as she claims were expecting a deficit in the budget because the promises that were made on the reparation for the pledges for the education as well as disability. This was amid the falling of the pressure faced by the budget and the many companies threatening to raise costs of products. However, the Australian dollar had become strong so there will not be much pressure on the government. There had been a lessened number of jobs but with time this changed. Mining tax was also threatening to go high but commodity prices prevented the rise. All these are threats to the coalition government which has to look for means to fund its projects. Although it is not an easy task to do, the government has to understand that it needs courage to face these by conversing with the parties involved. 8 The above challenge to the government resonates with those of Rolfe when he questions where the retirement benefit for Gillard will come from. There has been speculation on how the money will be raised from the high income members. One way to raise the super tax will be by raising it from fifteen percent to thirty percent for the higher income class especially those earning three hundred thousand dollars and above.9 Despite the fact that this is good move, the finance department failed to reveal how it will raise the money that is the calculations that will be involved. As mentioned earlier by Irvine, it this will be a good way of creating a good representation and redistribution. Therefore this will be a good move for the general improvement towards balancing the equation between the rich and the poor. As a matter of fact it has been observed that the above examples that have been selected from various instances and by different people point toward the way to utilize a country’s tax. Furthermore, the equation has to be favouring the people across the divide. The low income earners and those of high want to feel represented in the running of the government. The same move will ensure that the resources of a country are shared. However as noted, many people talk about tax not knowing it can be unfair. This is witnessed by the way the superannuation tax has been allocated along the divide. It is therefore important for Australia to make various amendments to the taxation for an equitable distribution of national wealth. In conclusion, it is important to observe that many nations want to have their people receive the best from their contribution to the nation. On the same note, turning to Australia, it is easily observed that many things need to be done to make sure that everybody gets a good share. While many other implementations of tax have been successful, there is a need to make sure that some taxes are rechecked make the people understand it outside what politicians would say. It is easy for politicians to mislead since a few may mislead on the collection of tax over the country. Bibliography Farr M., Change the tax system: Business group’s controversial call, Adelaide Now April 17, 2013. > Irvine J., Abbott to up super tax on battlers. Adelaide Now, January 31, 2013. > Irvine J., Government needs to reassure Au stralians on changes to superannuation. Adelaide Now, March 30, 2013. Irvine J., Labour’s real battle, the budget. Adelaide Now, March 26, 2013. Osborne P., Swans office rules out income tax rises. The Sydney Morning Herald February 14, 2013. Rolfe J., Julia Gillard sitting on a super pot of gold. Daily Telegraph, April 02, 2013. > Williams T., Call to extend city park tax to suburban shopping centres. Adelaide Now, March 25, 2013. Martin P., Hurst H., Super funds in balancing act. The Sydney Morning Herald, April 5,2013. Read More