Labor’s “absurd” $3,000 deduction limit based on three false premises

 

Tax & Super Australia (TSA) urges Opposition Leader Bill Shorten to stop his attack on everyday Australians and drop his proposal to put a $3,000 limit on the amount that taxpayers can claim as a deduction for tax advice and services.

Mr Shorten’s proposal is “absurd” because it is based on three false premises, says TSA’s Chief Executive Officer Moti Kshirsagar.

“The first false premise is that there is a big problem with people claiming excessive tax deductions in relation to the management of their tax affairs,” Mr Kshirsagar says. “Even the Commissioner of Taxation has publicly cast doubts on this logic.”

“The second false premise is that the ability of ordinary people to claim a tax deduction for everyday tax matters results in a ‘tax loophole’ or a ‘subsidy’ for the big end of town,” Mr Kshirsagar adds. “Australian tax laws are very complex and every year thousands of ordinary people have tax issues that cost more than $3,000 in legitimate advice. This includes small businesses, deceased estates, superannuation, retirement – and the list goes on!”

“The third false premise is that the more you are advised, the less tax you pay. This is simply incorrect. Tax agents are not crooks. They advise taxpayers of their obligations under the law – and this often results in their clients having to pay more tax, not less.”

In fact, in TSA’s recent submission to the Treasury’s Black Economy taskforce, TSA members were vocal in offering solutions to curb illegal behaviour.

“This proposal is an absurd idea and an insult to the accounting profession,” Mr Kshirsagar concludes. “It is anti-business and a bad deal for thousands of ordinary Australians. Mr. Shorten should immediately drop this poorly considered policy.”

 

MEDIA CONTACT

For specific comment and case study examples to show how everyday taxpayers can quickly reach the $3,000 cap, contact:
John Jeffreys, TSA Tax Counsel, Ph: 0416 250 461 Email: jjeffreys@taxandsuperaustralia.com.au

About Tax & Super Australia (TSA)
TSA has represented the interests of taxpayers and tax agents for 100 years through advocacy and professional development. TSA’s head office is based in Melbourne and represents members located all over Australia. For more information, visit: taxandsuperaustralia.com.au

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