11th September 1998
John Howard's Tax Reform Package contains two hidden taxes, an Assets Tax and a Death Duty.
These new taxes will apply to the tens of thousands of struggling farmers and small businesses who own assets in trusts or private companies. The Federal Opposition has adopted these parts of the government's tax package. In their attempt to stop the wealthy from avoiding tax both Liberal and Labor have disadvantaged the battler.
The Hidden Assets Tax and Hidden Death Tax have both been falsely described as "reforming the Fringe Benefits Tax to make the system fairer for all taxpayers"! Unfortunately for the battling small business person and the small farmer who is struggling to make ends meet, the new Tax will destroy them and their children.
To describe these new hidden taxes as an extension of Fringe benefits Tax is a lie.
HIDDEN ASSETS TAX:
This will apply every time a beneficiary of a trust or a shareholder in a company receives a benefit (in excess of $1,000.00 in value) from the trust or company (Source: Third dot point in the Government Tax Reform Package under the heading "Reforming the Fringe Benefits Tax Provisions").
To describe these taxes as other than an assets tax (tax on the use of capital assets) is a lie.
HIDDEN DEATH DUTIES
Most Wills set up trusts, some for short periods and some for long periods. When the estate is passed from the trust to the beneficiaries, the amount paid will attract 47% tax (Source: Third dot point under the heading "Reforming the Fringe Benefits Tax Provisions").
To describe these taxes as anything other than death duties is a lie.
ONE NATION'S RESPONSE
One Nation completely opposes these hidden taxes. John Howard has deceived the Australian people by hiding his intention to pursue these Hidden Assets Taxes and Death Taxes as so-called Fringe Benefits Taxes. They will apply to tens of thousands of people who hold their small family farms or businesses in trust for asset protection purposes. The tax will apply to almost all deceased estates.
Clearly, these hidden taxes are not in the interest of all Australians.
Statement issued by Pauline Hanson MP, member for Oxley