"Tax it on the way in, tax it whilst it was in there, and tax it on the way out."redandblack wrote:Good article except for the irrelevant red bits.
Tell us what you really think, Paul
That was certainly why I gave up my plans to set up a self-managed superannuation fund once we were under the Hawke/Keating government.
They created a tax trap - you had to declare a high taxable income to be allowed to put much away, then pay tax on it as described in the dreadful red above.
It wasn't hard to work out it wasn't going to pay, and it encouraged us all to find tax deductions to divert pre-tax income into assets and rely on drawing a government funded pension in later life instead of providing for an independent retirement.
Then when high interest rates made extending your business [or your home] less viable, tax deductions went up in price.
It did, however, create a situation in which I was able to sell a Porsche I'd bought second hand some years earlier for a 40% profit - thanks, Paul!
Basically it was as sound as the demand for log books to verify previously ATO accepted car deductibility policies.
Those prompted me to move from accepting the standard 90% deductibility for one business vehicle to using my log books to claim, successfully, 100% of one vehicle and 30% of a second for years to come.
[And of course added to ATO administrative costs.
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