Policies/Tax and Welfare

The Pirate Party will build transparency and progressiveness into the tax system through the following measures:

Replace hidden and inefficient taxes.

 * Introduce a cash flow tax informed by the Henry model to replace the GST, many special purpose payments, and a range of state taxes. Revenue will be distributed among states who agree to abolish:
 * Payroll tax
 * All insurance taxes
 * All property transfer taxes
 * Stamp duties on the purchase of motor vehicles
 * Luxury car taxes
 * Taxation of superannuation contributions in the fund.
 * Financial services will be taxed equivalently to other forms of consumption.
 * Exports will be exempt and imports subject to the tax, to support international competitiveness.
 * The tax will be set at a level sufficient to reduce special purpose payments to the states.
 * This will free additional revenue to be returned through income and company tax cuts.

Make income tax simpler and more progressive.

 * Increase the tax-free threshold to a level equal to the poverty line (currently $25,140).
 * Apply simpler and lower tax brackets for income levels above the poverty line.
 * A 30% tax rate for income up to $120,000.
 * A 43% tax rate on income above $120,000.
 * Remove tax offsets and thresholds to simplify collection and broaden the tax base.
 * Implement ACOSS recommendation on reducing tax avoidance by classifying more forms of work payment (company cars, fringe benefits, shares) as standard taxable income.
 * Introduce a tax free threshold on superannuation contributions to protect low and middle income earners.
 * Abolish income tax on government benefits.
 * Implement Henry Review recommendation to provide taxpayers with an optional standard deduction for income tax returns, obviating the need to collect and retain receipts.

Provide tax exemptions on the basis of community benefit.

 * Reduce tax on donations by expanding deductible gift recipient status to cover all charities.
 * Remove "advancement of religion" as a charitable activity for the purpose of determining tax-exemption.
 * Tax-exemptions will no longer apply to commercial businesses run by religious organisations.
 * Non-commercial income earned by religious organisations will remain tax-exempt if the organisation meets any other categories for exemption (including provision of charity, education, culture, community service, or health).

Reduce company tax and associated costs to promote innovation.

 * Cut the company tax rate from 30% to 25%.
 * Other changes including cash flow tax settings and improved efficiency will provide revenue neutrality.
 * Introduce a tax-free threshold of $2,000 for sole-trading micro-businesses.
 * Micro-business income up to this level will be discounted for the purpose of calculating income tax and benefit thresholds.
 * Implement key Henry Review proposals on reducing administrative burdens for businesses.
 * Allow businesses to offset losses against a previous year's taxable income.
 * Increase the low-value asset threshold for small businesses to $10,000 and allow depreciating assets to be grouped.

Make tax administration more transparent and citizen-focused.

 * Trial a process for the community to directly petition the government on tax-related issues, with a view to extending the process to other areas of governance.
 * Implement Henry Review proposals to make tax more “citizen-centric”.
 * Provide taxpayers with an easy mechanism to review the totality of their financial relationship with government.
 * Allow all taxation transactions to be conducted online.
 * Ensure data and reviews on the function of taxes and transfer systems are made public.
 * Ensure interconnection of systems such that changed information (such as a move in address or a change in personal circumstances) only requires a single input.
 * Institute common processes for easy transition between different tax payments.
 * Remove ATO powers to impose or enforce confidentiality clauses on taxpayers.

Push for an international transactions tax.

 * Support the global campaign for an international transaction tax on high-frequency stock market trading.