Originally Posted by
peterc005
When Paul Keating introduced Capital Gains Tax, Dividend Imputation and Fringe Benefits Tax it severe distortions and improved both vertical and horizontal equity in the Australian tax system. A 10% Goods and Services Tax widened and flattened the tax base.
If you want to live in a modern western democracy where the lights always work, the legal system functions well and the most likely cause of death is obesity - it costs a lot of money.
Having started my working life believing the above and with a firm vision of being a profitable citizen and self-funded retiree, I don't have too much faith in the system now. Those who work hard to be profitable and who make long term financial decisions, are vulnerable to government policy that must sustain a increasing numbers of folks with their hand's out. One in four Aussies do the hard yards for the rest!
Then, being an expatriate, you meet many who want to migrate to Aus' and be one of those one in four profitable Aussies, yet we seem happy to take in many bludgers and are crippled by PC in saying so. I'm not affected by the above CGT changes this time around. But the government will move the goalposts again I'm sure, with my strategy of funding independent retirement.
I'm cynical about the future Labor government. I'm nicely hedged to take advantage of their wrecking policies.