Australia cannot continue to run deficit budgets and accrue inter-generational debt. We have a moral obligation to future generations to repay in excess of $1tn in debts generated since 2008. Conservatives will reduce the unnecessary and wasteful spending and inefficiency of government to ensure that we minimise debt growth and repay the existing debt.
We believe in the constitutional separation of powers between the legislature, the executive and the judiciary. We also recognise and support the division of responsibility between the Commonwealth and the States. All Governments should spend taxpayer dollars wisely to minimise the size, scope and waste associated with government. To this end all Governments and their departments will be open to full public scrutiny and accountability, with complete transparency of the finances and how they are managed and spent. All Government departments will be run efficiently to make them effective and productive and to improve the overall quality of service. A full review will be undertaken of the country’s bureaucratic levels of government, such as state governors, state upper houses and the senate, with a view to reforming or abolishing them altogether.
Individuals are far better placed to decide how best to spend their own money, than governments. Our economy will be far stronger and more responsive to changes in preferences and circumstances when taxation and regulation are as low and as efficient as possible. We will streamline the taxation system increase the tax-free threshold to $45,000 and reduce the number of personal tax brackets. We will cap upper-end taxation to reduce tax evasion.
We will introduce a corporate tax-free threshold of $50,000, this will alleviate profit tax issues for the majority of small business, which struggle with corporate tax on a low turnover base. To support this, we will maximise the number of tax offsets, rebates and deductions, as well as standardise them making accounting processes far easier.
We will restore confidence and certainty in the superannuation system to ensure those who have worked hard to achieve financial self-sufficiency will not be disadvantaged by government decisions. We will remove the tax cap on self-managed superannuation funds, making all additional voluntary superannuation contributions tax free. We will reduce the superannuation guarantee tax contribution from 15% down to 10%, with a long-term agenda of making all superannuation contributions tax free.
We will streamline regulation, remove the red and green tape strangling business, investment and job creation. No new regulation will be introduced until it has been verified that it doesn’t already exist in another form. A prime example is the ASIC Directors’ ID and the Banking Institutions Anti-Money Laundering account holder checks. The director has to provide this information twice, just to satisfy new regulation; when the simplest way would have been for just one Director ID verification, which can then be used for all other verifications.
All taxes, duties and levies will be reviewed for their practicability and effectiveness, with a view to ultimately, scrapping, reducing or amending taxes so, that they are fit for purpose and not an unnecessary burden placed upon the people and business, just so politicians can fund their costly vanity projects.
By reducing the number of special tax categories, concessions and deductions, the tax law can be simplified and dead-weight accounting and legal costs can fall. The extra revenue raised from such streamlining can be used to lower tax rates for all. By reducing distortions from taxes imposed, and freeing up resources for more productive uses, we can strengthen our economy.
Sovereign Money also known as Positive Money, now forms the basis of Modern Monetary Theory. Simply put it is variant of Quantitative Easing, but without any accruing interest, which by-passes the traditional way of creating money.
Quantitative easing involves the central bank either printing money and giving it to commercial banks with the intention that they lend it out to stimulate the economy, or the central bank buys bank bonds to free up money. This does not work, as the banks rarely lend the money out and the economy remains stagnant. Furthermore, the central bank has to pay interest on the bank bonds, which is ultimately paid by the tax payer. So, the banks win at the expense of the people.
With Sovereign money the central bank creates money; and then the Government can spend that money on what it likes. There are no interest repayments, so there is no accruing compound interest debt, but a sudden influx of money into the economy can create both inflation and price inflation. If they print $100B and spend it, it will not be possible for the economy to absorb all that money in one go. There may not be enough products available, which will drive up prices on any existing stocks, or it will require the need to import goods. Also, there may not be enough skilled workers to meet the demand for new building projects or other services for which there is now an increased demand. Thus, there will be pressure for workers’ wages to rise, as demand for workers out strips the available work force and existing workers can auction themselves to the highest paying employer.
The key to making Sovereign money a success, is for the Government to introduce the money into the economy at a rate that does not create unnecessary pressures, nor pushes up prices due to lack of supply. The government can create its own supply industries, to ensure that the demand is met, thus keeping prices stable. This is an opportunity for Business and Government to work together in co-operation to ensure that supply meets demand, which means that businesses will increase to produce the supply. This in turn creates more jobs, which creates more demand and as the whole process is repeated the economy grows, benefiting everyone.
With housing loans, although Australia will require approx. $3T to buy out all the existing mortgages, this process can be achieved in an orderly fashion, starting with the smallest mortgages first. When the homeowner transfers their mortgage to a Sovereign Bank Mortgage, the sovereign money can be created at that time. The money is then paid to the former bank to pay out the original mortgage. In theory, the accepted opinion is, that this will create a huge surplus of money for the banks, which they could then use to swamp the economy by making cheap personal loans readily available, which could push up prices due to the over demand and lack of supply. However, there is one fact that most do not realise, and that fact is, that by repaying a bank loan, the bank will have zero money left over as the repayment wipes out the debt, that it originally created.
The conventional view is, that when a person opens a savings account and deposits $1m into it, they will receive 1% savings interest from the bank. The bank then lends the $1m to another person as a mortgage and charges them a 7% loan interest. The bank’s profit is then the difference between the two interest rates, being 6%. But this is not the legal case. For when a person deposits their money with the bank, they are in fact lending the bank their money, for which the bank gives them an IOU and pays them interest. The bank can spend this money as they see fit, but in order to lend that money to another person, they must first seek the depositor’s permission to do so. The reality of doing this on multiple loans is impracticable. So, to get around this problem, the bank simply creates a debt to itself for $1m and lends that to a borrower. When the borrower repays the loan, the bank repays the debt it created and the bank’s balance is zero. The only money the bank will have, is the interest and fees that they made on the mortgage loan. They will still have the original deposit of $1m in their account.
So, when the Sovereign Bank repays the mortgage loan on behalf of the homeowner to their bank, the bank will use that repayment to simply pay of the debt they created and the bank’s account balance will be zero. Therefore, they will not have a huge supply of sovereign money to lend out, so, they cannot create a cheap loan lending frenzy. The only way they could offer multiple cheap loans is to create more debts, which they could do, but the Government will watch and regulate such a move and put a stop to it, if necessary.
With new home build sovereign loans, we will not flood the market with money as this will create an over demand for labour and building materials, which if the supply cannot be met, with create price inflation. By working to a careful building programme, one that can be matched by the available labour and materials, this should prevent price inflation. Furthermore, as we intend to build, at least the council houses, in a factory production line type system, we should be able to increase production, without any inflationary effect.
Due to Sovereign mortgages, it is hoped that the duration of mortgage repayments will reduce to ten or fifteen years, instead of the normal twenty-five or thirty years. So, in ten to fifteen years, the first sovereign mortgages will be repaid and as each year passes, more loans will be repaid. This means that homeowners will be debt free and have more available money to spend on other things.
If they continue to save the equivalent monthly loan amount into their savings accounts, that will create healthy positive bank balances. Alternatively, they could pay the monthly loan amount into their superannuation, tax free, which if they do, over the next fifteen years, will see their superannuation accounts increase by at least $400K, which is the equivalent amount to the mortgage that they repaid in the previous 15 years. This increase in superannuation contributions, will be a great stimulus to the economy.
But the real magic happens, when the people start to improve their quality of life, such as buying a new car, TV, going on holiday or dining out at restaurants. This positive spare money will stimulate the economy; and because we will have been planning for this, the products will be available to meet the new demand. Holden will hopefully be building Australian cars, that people will want to buy, other Australian made electronic and white goods will be available for purchase. All of which helps maintain and create Australian jobs, which in turn grows the Australian economy, without creating inflation or increasing debt. People will be able to buy shares in those nationalised industries, such as Holden, when the Government sells them to the public to recoup their sovereign money investment. The profits made on top of the Sovereign money investment, can be used to repay the State and National debts, with the ultimate aim of making Australia a debt-free economy.
As for Commercial Banks, they will still be able to provide loans to people who wish to purchase a holiday home or a commercial property investment. So, in the long term the banks will benefit from the healthy Australian economy, something that they currently do not; and are in fact chiefly responsible for ruining.
Sovereign Money is interest free loans to the Government, by which the Government can pay for projects, with a total Return on Investment Guarantee built in. This ROIG prevents Governments just printing money for all and everything they like without checking the negative consequences. Introduction of additional liquidity into the economy can have an effect upon inflation, so it must be strictly controlled and monitored and booked as a national debt, that must be repaid.
The problem with printing money is how it will be viewed by other countries. Their concern is, that you will devalue your currency by oversupply, making it worthless. Just like the $100 Trillion Zimbabwe Note, it has no monetary value and cannot be traded. One way to get around this problem is to conduct your international trade in US dollars. You buy our commodities in US Dollars and we use those to buy your products. What we chose to do internally is up to us, providing we do not abuse the system and print money willy-nilly.
The biggest issue with having a significant national debt, is the accruing interest, which eats up a considerable amount of our annual budget and places restraints on other spending. So, it is important to remove the interest-bearing accrual from our debt. This will then prevent the debt from organically growing over time; and will enable us to repay and decrease the debt every year. How do we transfer our national interest-bearing debt to a non-interest-bearing debt. We could just print the amount that we owe and repay every creditor. Provided that they accept our repayment in good faith, then it’s not an issue, but if they have doubts about the worth of the money that we have repaid, then we might as well have used monopoly money, for all the good it would do. The alternative method, is to borrow money from a country that has a good international reputation financial speaking and one that has either no interest or very low interest-bearing loans.
The Japanese, were offering negative interest rate loans, although recently they have introduced interest bearing loans. So, subject to Japan’s approval, we could borrow from them the exact amount to cover our National and State debts, approx. $2 Trillion and repay all our debts owed, thus ending the need to pay accruing interest. We then print $2 Trillion Sovereign Money and repay back the loan to Japan; this is subject to Japan trusting us. We then book this new debt to ourselves in an open and transparent account ledger. Japan will need to be convinced that we are treating the debt as a debt and not just as a clever way of getting rid of a debt. This way it will not affect the Japanese economy. As we repay this national debt, it will reinforce the true value of the money that we repaid Japan.
To sweeten the deal, we will enter into business deals, where Japanese car manufacturers and other industries can set up in Australia and benefit from tax breaks on profits. We will also sell coal, iron ore and other commodities at a discounted rate to Japan, which will help their balance of trade and economy. They will benefit from a ten percent discount off the standard market rate. This arrangement will continue until we have cleared our national debt. We will also enter into a military co-operation agreement, where we will look at a joint venture submarine building programme. There will be Tax free concessions for Japanese companies that open here in Australia. They will also be able to access cheap power costs, once our new power stations come on line. We will benefit from the employment opportunities for all Australians. This will be a partnership of mutual benefit between Australia and Japan, which will be beneficial to both countries.
As of late 2025, combined interest payments on all Australian federal, state, and territory government debt are projected to reach approximately $48.1 billion annually. This figure is expected to continue rising, potentially reaching $64.5 billion by 2027–28. The AUSJAPAN loan arrangement would see the end of the annual $60B interest charged, that we pay on $1Tn at 4.8%. The $60B interest saved can be used to pay down the Sovereign $1T debt. At this rate the national debt will be repaid within 17 years, without effecting the annual budget.
Rather than increase GST to 15% or 20% perhaps we should apply the current rate of 10% across all sectors including food, education and health. GST can be a valuable instrument to help fight inflation and to level up the playing field for business, by not applying different rates to certain products or services.
Inflation and our attempts to combat it, is a major issue facing the country. Inflation is the inflating of the economy, which can be done by the government simply borrowing money. This additional money if spent into the economy, then inflates the economy, which then has negative effects on prices and interest rates. The more money we pump into the economy, the more likely that prices will rise, simply because there is more money available. So, the demand for goods increases, but if there is a lack of supply, then prices are driven up. If the supply can keep up with the demand, then in theory prices need not rise. Prices may rise irrespective of any increase in inflation, simply because companies wish to put up their prices for their goods and services. This can also apply to government organisations and public utilities.
The general view of inflation is, that as it grows it devalues money, making things more expensive. If inflation is left unchecked and allowed to grow, then it could grow to such an extent that it becomes hyper, which ultimately results in the total collapse of the economy. This scenario has been played out in Germany, Argentina and Zimbabwe all with terrible consequences.
To stop inflation getting out of control, the general approach is to control the money supply, by adjusting interest rates. The theory is, that as interest rates rise, the cost of borrowing increases, so people or companies don’t borrow, because of the higher cost and those with loans, have their loans increased thus removing money from the economy, preventing people or companies from buying goods. As the demand for goods decreases, the supply increases, thus putting pressure on companies to lower their prices, which in turn lowers price inflation.
This is the current practice which we are all familiar with, but is it right, does it really work and who really benefits. As of October 2024, we have been advised by the RBA Governor that inflation is still too high and it needs to be brought under control. To do this the Governor has recommended that the official interest remain at 4.35%, which in turn means the average mortgage loan rate will remain around 6% give or take. The consequence of this is, that a mortgage holder with a $500K mortgage is paying another $12,000 in extra interest per year. For whom the majority are now having to deal with mortgage stress on top of the everyday cost-of-living crisis that exists.
If we accept that these measures will result in the mortgage holder having less money and not spending it on goods, then the supply and demand factor comes into play and inflation reduces. But this is not the case, for although those with mortgages will reduce their spending, other persons who do not have a mortgage, will not be affected. In fact, if someone has $500k savings in the bank at 2.4% interest, they will receive $12,000 in interest per annum. With this extra money they can afford to pay the higher prices for goods, so the demand meets the supply and there is no need to lower the price. In effect, the non-mortgage holders spending balances out the mortgage holders reduced spending. So, the pressure of high interest rates to drive down inflation is neutralised by those that have money to spend. Unless you stop all spending, then the demand for goods will not stop. Therefore, it is fair to say that raising interest rates, has both a negative and positive effect which balances each out, and has very little effect on price inflation.
What makes the situation worse, as confirmed by the RBA Governor is, that Government spending is still too high and this is the real cause of the rise in inflation and its failure to reduce. In view of this, as government spending is outside the control of the mortgage holder, it is unfair that they must bear the brunt of the anti-inflation measures. Where if the Government undertook a strategy of decreasing spending and stopped borrowing, then this would have a far greater effect on lowering inflation, which would enable the RBA to reduce interest rates.
It must now be accepted, that using interest rates to control inflation is ineffective, unless all the pieces fall into place, which they never do.
There is an easier way to control people’s spending habits and it would be applied to every person, irrespective of whether they have loans or not. To combat price inflation, we should be using GST. The benefit of GST is, that it is applied to most goods and services, therefore if it is increased, everyone is affected. It will mean that the total price of an item will increase, but the base price will not. But, the whole purpose of controlling inflation is, that they do not want you to buy the goods in the first place, to force the price down.
By using GST, you can either increase it across the board or target selected goods or certain sectors of commerce, where the increasing price is an issue. So, say you want to slow down the sale of TVs, you could increase the GST on TVs to 20% or 30%. This will increase the total price and deter people from buying the TV. If retailers want to sell TVs, but cannot because of the higher GST, then they could decide to lower the base price of the TV to offset the hike in GST. Working on the assumption that the Bureau of Statistics will use the base price of goods, nett of GST, to measure prices, then the price of TVs will be lower, thus having a positive effect on reducing inflation.
Using GST instead of interest rates means, that mortgage holders do not get hit with the double whammy. With a typical household having an annual budget of $50,000 to spend on their living costs, excluding mortgage and rental payments; if inflation is 10%, then the annual cost of living increases by $5000 to $55,000. If interest rates rise, which they have; and increase your interest repayments by another $12,000 a year, then in real terms the total effect upon the household budget is an increase of $17,000. So, the question begs, which is having the worst effect on peoples’ cost of living, inflation or higher interest rates. If polled, it might be said, that the people are prepared to put up with the $5000 increase cost of living and forgo the larger expense of the $12,000 interest increase. It does seem odd that the logic of RBA Governor is, that they don’t want you having to spend an extra $5000 on your cost of living, but they are prepared to slug you with an extra $12,000 mortgage increase, in the vain hope that it will reduce the $5000 increase in cost of living.
Under a Conservative government we will introduce sovereign money, which in simple terms is the Government borrowing money off the people, from their future tax contributions; and printing money, without any interest component. We can then lend you that money to purchase your house, which you will then repay back to the government over 15 years. Once repaid the debt no longer exists and we can cancel the sovereign money for that mortgage, as if we had never created the money in the first place.
So, if sovereign loan mortgages replace traditional bank home loans, then there will be no interest accrued on the loan. If there is no interest applicable, then how will increasing interest rates combat inflation, it won’t. That is why the best way to combat inflation is through the manipulation of GST rates, or ensure that supply keeps pace with demand.
Another two-part way to combat inflation is, first to have a government that is extremely careful with how they manage the finances of the economy, focusing on efficiency to reduce costs and spending. The second is to work with businesses to ensure, that there is always an adequate supply of goods to meet the demand and to keep prices consistent and not increase them to make a quick profit. This request of business not to increase prices, will run contrary to their core capitalist dogma. However, profiteering by corporations is one of the main reasons why prices have been increasing. This is understandable in view of the fact, that the government is hell bent on taxing every bit of profit out of companies; and this is their way of clawing some money back. A government that works with business for the greater good, is more likely to be supported by business; for what they lose on price increases, is offset by lower taxes, a growing economy and more goods being sold.
Inflation can be controlled and kept under control far easier than the government and the RBA would have you believe. High inflation always results in high interest rates, which if the incorrect way to combat inflation, then why persevere with this course of action, who benefits. The only entities that benefit are the banks, for they can charge more for a loan, which increases their profits. Raising rates to a bank is the same as increasing prices; and yet, bank price increases are not regarded as inflationary, even though they are. Some would say that the whole system of interest rates is a con and that the banks are aided and abetted by the RBA to enable them to facilitate huge profits at the expense of the struggling battler, who is then told by the RBA Governor, that it their fault for going to the dentist or having a haircut; and if they can’t afford their mortgage then they should sell their home. If Government spending is the main cause of inflation, then why doesn’t the RBA Governor, practice what she preaches and take a substantial pay cut and reduce her $1m annual salary. Or better still just abolish the RBA Governor and board.
The Reserve Bank has responsibility for ensuring the stability, efficiency and competitiveness of the payments system. It also has a regulatory and operational role in ensuring that the payments infrastructure promotes financial stability. The Reserve Bank is responsible for producing and issuing Australia’s banknotes.
The RBA will fall under the control the Treasurer. The RBA will continue to function as it is, but it will cease to be an autonomous authority in its own right. The RBA Governor will still set the base rate interest rates, subject to Government approval. A branch of the RBA will be set up purely for the purpose of sovereign money, basically a State-owned Bank that will hold and issue sovereign money on behalf of the Government.
Stamp duty rates vary from state to state and where and how they are applied. Stamp Duties should be more uniformed throughout the country so, that Australians are treated more fairly. Why is it the ACT has zero Stamp Duty and yet South Australia has 11%. As Stamp Duty is a tax raised by the individual States, it will be difficult to get agreement to adjust it up or down to bring them into line. But just like GST, Stamp Duty could be used as a way of controlling inflation, by applying and adjusting Stamp Duty rates on certain goods or services. As GST is nationwide and Stamp Duty is state based, a state that is experiencing price inflation in one sector, could apply or increase stamp duty to rein it in. The mechanism for changing the state Stamp Duty rate is far easier than changing the GST rate.
As these are taxes by another name, it is only logical that they fall under the auspices of the treasury. The treasury can monitor the application of such revenues to ensure fairness and to apply an element of protectionism. This can be done by applying duties, where the price of an imported item undercuts the locally made product. It will also be able to reduce or eliminate duties that harm or impede our exports. When it comes to holiday travel, there will be no limit on the number of duty-free products that you can bring into the country. The amount you can bring in will be based upon the rule of “If you can carry it, you can keep it” It will be interesting to see the ingenious ways, that people will think up to be able to carry large amounts without dropping them.
As land is important and generally attracts a fee or tax, it is important that we have a nation register of all land, so that we can monitor the values and taxes that are applied to all land. It will also allow us to determine what land is available for development and large-scale house building.
In order to reduce the national debt, we should strive to eliminate wastage and leakage of money in all sectors of Government. The following examples are only approximate percentages of wastage and leakage, that may occur, at all levels of society, but are not unrealistic. A test that anyone can undertake is, to look at their last wage package and try and account for every cent of it, what you spent it on, what you saved and the amount that you can’t account for.
5% – 10% Personal
10% – 15% Company
15% – 20% Local Government
20% – 30% State Government
30% – 40% Federal Government
The current National debt as at March 2026 is approximately $1 trillion, this is the money spent by the Government, above what they obtain via taxation, which is $660 billion. If we use the figure of $500 billion as the excess spending, then the following figures show how much the spending debt would reduce, if the equivalent percentage of wastage or leakage was reduced.
5% $25 billion saving
10% $50 billion saving
20% $100 billion saving
30% $150 billion saving
40% $200 billion saving
Even if only 5% of the national debt is wasted or lost via leakage then this is $25 billion, so, without having to close a school or hospital or cut any service or increase any tax, in theory you could reduce the debt by $25 billion, just by accounting for every dollar spent.
The National Debt interest for 2016/17 was approx. $18 billion. The compound interest was the problem, for any budget surplus had to be at least $18 billion per year, just to keep the debt static. In order to reduce the capital debt, the surplus had to be in excess of $18 billion. Even if the budget surplus was $28 billion and there is no more Government spending, in excess of that which was collected by taxes, then it would still take 50 to 60 years to clear the national debt.
As the National Debt Interest rate appeared to be 3.6%, it should have been a priority, if and where possible, to refinance the national debt with a lower interest rate. At 1.5% on $500 billion the annual interest would have been $7.5 billion. With the proposed budget surplus in 20/21 being forecasted at $7 billion, we had a greater chance of getting the national debt under control, if we had focused on eliminating wastage and leakage and refinancing the debt to a lower interest rate.
$89 billion had been allocated to build ships in South Australia, of which $40 billion worth of new patrol boats were to be given away. This was ludicrous, either don’t commission them in the first place; or sell them or keep them. Should we had considered scrapping the 12 diesel submarines at $50 billion and the new fighter aircraft for the RAAF at $80 billion. Without a nuclear strike capability, it is pointless having submarines, especially ones with diesel engines.
If the Government was wasting 20% of expenditure and you scrapped the naval and air force contracts, this would have reduced the debt by $269 billion. Additionally, they could scrap the foreign aid budget of $3.8 billion and deport all illegal refugees, saving a further $2 billion per annum.
These suggested cuts are not about whether you agree or disagree with them or arguing the merits of keeping them. This demonstrates, what drastic action could be taken to try and reduce the debt. Even if all these measures were implemented, you would still have a debt of $250 billion with accruing interest at 1.5%. You might be able to reduce the debt further by cancelling projects like the Badgers Creek Airport $6 billion, the north south rail link $6 billion and the Adani mine rail link $1 billion.
This demonstrates the difficultly in trying to balance the budget, for even with these cuts you would still be spending more than you collect by way of taxation, which means that you will need to rein in even more spending; or you may even have to increase taxation to help balance the books.
As of late 2025, combined interest payments on all Australian federal, state, and territory government debt are projected to reach approximately $48.1 billion annually and are expected to continue rising, potentially reaching $64.5 billion by 2027–28. The $50B submarine project has now morphed into the $368B AUKUS deal and the Victorian State Government wants to start building the Suburban Rail Loop with a starting cost of $200B, even after the discovery of $15B being allegedly embezzled from other state projects. Are these projects really worth it and could the money be better spent elsewhere, or perhaps not spent in the first place. Ironically, these projects support the Conservative policy for full open and transparent financial accountability and the economic case for sovereign money and modern monetary theory.
Taxation and business go hand in hand. It is true that others contribute to the tax pool, such as employees, payers of GST and other taxes etc, but these would not exist if there are no businesses. It is businesses, that employ the staff, from whose salaries tax is taken and the same businesses are rewarded for creating these jobs by having a payroll tax levied upon them. It is businesses that make and sell the products or services to which GST is applied and it is businesses, that pay their corporation tax on the profits they make.
Governments that rely upon these taxes, are quite happy to maximise the tax take from businesses, but do very little to assist them. In fact, most Governments actively work against the interests of business and are more of a hinderance than a help. The time has come for Governments to start respecting the value and importance of businesses and the crucial role they play in our society. To this end the following tax changes need to happen.
Abolish State Payroll Tax. Current State Payroll Tax Rates as at 2025
Companies with an annual turnover of $10m or above, which engage overseas contractors to undertake Australian work, will have one year to terminate those contracts and relocate the jobs back to Australia. Whereafter, a 5% tax levy penalty will be levied on the annual turnover of the company, if overseas contractors doing the Australian work are still engaged. We want all Australian work to be undertaken by Australian employees here in Australia. To this end all overseas contracting and outsourcing will be eventually phased out.
This will encourage Australian companies to keep jobs in Australia or bring jobs back to Australia. Jobs such as call centres or administration are jobs that could and should be done in Australia. All companies will need to declare the number and details of all overseas contractors engaged in their business.
This tax levy will not apply to specialised expertise, that can only be sourced overseas, such as a specialist technician; or where there is no equivalent technician in Australia. The general rule is, if the job can be done by an Australian, in Australia, then it should be. This imposed Corporate Tax Levy is, in part to offset the loss of the personal income tax, that is not being paid by the overseas workers, which would otherwise be paid by Australian employees.
Companies that have a workforce of more than 10,000 employees, will be eligible for a further tax cut of 1% Tax reduction for every additional or part thereof, of 10,000 employees employed in Australia for a full year in a single company. This is designed to encourage companies to employ more Australians in Australia and bring overseas jobs back to this country. There will be no further reduction in the company tax rate, until the national debt is under control. Then the aim will be to reduce the company tax rate to a flat 10%.
Corporate Tax Rates Employment Incentive
Number of Employees | Tax Rate |
| Number of Employees | Tax Rate |
0 to 10,000 | 20% |
| 110,001 to 120,000 | 9% |
10,001 to 20,000 | 19% |
| 120,001 to 130,000 | 8% |
20,001 to 30,000 | 18% |
| 130,001 to 140,000 | 7% |
30,001 to 40,000 | 17% |
| 140,001 to 150,000 | 6% |
40,001 to 50,000 | 16% |
| 150,001 to 160,000 | 5% |
50,001 to 60,000 | 15% |
| 160,001 to 170,000 | 4% |
60,001 to 70,000 | 14% |
| 170,001 to 180,000 | 3% |
70,001 to 80,000 | 13% |
| 180,001 to 190,000 | 2% |
80,001 to 90,000 | 12% |
| 190,001 to 200,000 | 1% |
90,001 to 100,000 | 11% |
| 200,001 + | 0% |
100,001 to 110,000 | 10% |
|
|
|
A maximum $20,000 tax-free threshold will apply to the income of a hobby business, which will be in addition to any personal income received via a full time PAYG employment. This is designed for persons operating a hobby business at weekends or evenings. They can earn up to $20,000 per annum without having to declare or pay any tax. A Hobby Business which has an annual turnover greater than $20,000 must register as a business, either as a sole trader or Pty Ltd and apply for an ABN. GST registration is optional. To clarify, a person who has full-time employment and benefits from the standard tax-free threshold (currently $18,200, which we will increase to $45,000), will in addition be able to earn another $20,000 from their hobby business and not pay any additional tax. So, they could have a total tax-free income of $38,200 under the current tax system; or $65,000 tax free under the Conservative tax system. This will reduce the black market cash-in-hand economy and enable people to explore lucrative hobbies, without having to worry about the ATO.
A sole-trader is a person who operates under a recognised business model. Sole-traders will need an ABN, but do not need to be GST registered, unless they reach the GST income threshold. They can operate as a sole-trader with an annual turnover of up to $45,000. A Sole-trader will be eligible for the new tax-free threshold of $45,000 per annum, currently $18,200. Sole-trader businesses operating with a turnover exceeding $45,001, must incorporate as a Pty Ltd and register for GST. We want more companies, because of the protections and benefits that they afford the business owner.
All Companies must have an ABN and be GST registered. All companies will be eligible for the corporate $50,000 Tax-Free threshold.
Sole-traders, that sub-contract their services to another entity, irrespective of the amount they are paid and the amount it represents to the percentage of their total income; will no longer be deemed an employee under either of the Workers Compensation and Superannuation deeming provisions. The sub-contractor deeming provisions will be abolished. All sub-contractors will be required to pay their own tax and superannuation contributions; and hold their own insurance covers, including workers compensation.
All sole-traders and company directors will be eligible for worker compensation insurance. We will conduct a review into how premiums are calculated, to make for a fairer system. We will also normalise workers compensation from a state-based system to a new national system, so that all Australian businesses will operate under the same rules and laws, gazetted codes and ratings.
All sole-traders and company directors will be eligible for worker compensation insurance. Conduct a review into how premiums are calculated, to make for a fairer system. We will also normalise workers compensation from a state-based system to a new national system, so that all Australian businesses will operate to the same rules and laws, gazetted codes and ratings.
| Australian Tax Rates | 2016-17 | 2025-26 | 2027-28 | ||||
| Brackets | Rate | Tax Payable | Brackets | Rate | Tax Payable | Rate | Tax Payable |
| 0 – 18,200 | 0% | 0 | 0 – 18,200 | 0% | 0 | 0% | 0 |
| 18,201 – 37,000 | 19% | 3572 | 18,201 – 45,000 | 16% | 4288 | 14% | 3752 |
| 37,001 – 87,000 | 32.5% | 19822 | 45,001 – 135,000 | 30% | 31288 | 30% | 30752 |
| 87,001 – 180,000 | 37% | 54232 | 135,001 – 190,000 | 37% | 51638 | 37% | 51102 |
| 180,000+ | 45% | 190,000+ | 45% | 45% | |||
| Person on $100,000 Income | 2016-17 | 2025-26 | 2027-28 | ||||
| Brackets | Rate | Tax Payable | Brackets | Rate | Tax Payable | Rate | Tax Payable |
| 0 – 18,200 | 0% | 0 | 0 – 18,200 | 0% | 0 | 0% | 0 |
| 18,201 – 37,000 | 19% | 3572 | 18,201 – 45,000 | 16% | 4288 | 14% | 3752 |
| 37,001 – 87,000 | 32.5% | 19822 | 45,001 – 135,000 | 30% | 20788 | 30% | 20252 |
| 87,001 – 180,000 | 37% | 24632 | 135,001 – 190,000 | 37% | 0 | 37% | 0 |
| 180,001+ | 45% | 190,001+ | 45% | 45% | |||
| Total Tax | 24632 | 20788 | 20252 | ||||
| Person on $10,000,000 Income | 2016-17 | 2025-26 | 2027-28 | ||||
| Brackets | Rate | Tax Payable | Brackets | Rate | Tax Payable | Rate | Tax Payable |
| 0 – 18,200 | 0% | 0 | 0 – 18,200 | 0% | 0 | 0% | 0 |
| 18,201 – 37,000 | 19% | 3572 | 18,201 – 45,000 | 16% | 4288 | 14% | 3752 |
| 37,001 – 87,000 | 32.5% | 19822 | 45,001 – 135,000 | 30% | 31288 | 30% | 30752 |
| 87,001 – 180,000 | 37% | 54232 | 135,001 – 190,000 | 37% | 51638 | 37% | 51102 |
| 180,001+ | 45% | 4473232 | 190,001+ | 45% | 4466138 | 45% | 4465602 |
| Total Tax | 4473232 | 4466138 | 4465602 |
A typical man will pay approximately $2m tax in his life time. A rich man who earns $5m will pay $2,216,138 in tax per year. This means that the rich man will pay over twenty years $44,322,760 or the equivalent tax of twenty men’s lifetimes, just for being rich. Furthermore, they will probably not use anywhere near the services, that the state provides for the typical man. The question is, is this fair.
The maximum any one person should pay annually in the high personal tax rate is $2m. Once this figure has been reached, which is equivalent to a $5m annual salary, any amount earned above this will revert to a 5% tax rate.
For every $1m earned above the $5m threshold, they will only pay $50,000 tax, as opposed to the $450,000 they pay now. The truth of the matter is, that the rich man does not pay this tax, because the man will try everything to evade or avoid his tax liabilities. By applying a maximum tax cap, which reduces to a rate of 5% will encourage the rich to pay their tax; it will also encourage other rich people to come and live in Australia, because the tax system will be fairer.
| New Conservative Tax Rates | 2027-28 | |
| Brackets | Rate | Tax Payable |
| 0 – 18,200 | 0% | 0 |
| 18,201 – 45,000 | 0% | 0 |
| 45,001 – 200,000 | 30% | 46500 |
| 200,001 – 5,000,000 | 40% | 1966500 |
| 5,000,001+ | 5% | |
| Person on $100,000 Income | 2027-28 | |
| Brackets | Rate | Tax Payable |
| 0 – 45,000 | 0% | 0 |
| 45,001 – 200,000 | 30% | 16500 |
| Total Tax | 16500 | |
| Person on $10,000,000 Income | 2027-28 | |
| Brackets | Rate | Tax Payable |
| 0 – 18,200 | 0% | 0 |
| 18,201 – 45,000 | 0% | 0 |
| 45,001 – 200,000 | 30% | 46500 |
| 200,001 – 5,000,000 | 40% | 1966500 |
| 5,000,001+ | 5% | 2216500 |
| Total Tax | 2216500 |
