One Nation believes the only way to resolve the inequities, complexities, disincentives and punishing nature of our taxation system is to start again. One Nation has a totally new approach to taxation based on a 2% Easytax conceived in 1985 and researched over the last 13 years - a product of Tax Reform Limited.
2% Easytax will ensure all Australians are taxed fairly, multinationals pay their fair share of tax, provide incentive for growth in our economy and improve employment prospects, while also being visible and easy to understand.
All overseas companies operating in Australia will be required to publish their balance sheets in full detail. The giant multinational companies can show low profits by disguising a lot of their profit as fees, royalties and charges which are tax free at present. This new tax system will provide incentive for Australian companies using offshore tax shelters to cease these activities and start working within our domestic environment.
2%Easytax will reduce prices of all goods, services and employment costs by removing existing personal income tax, company tax, sales tax, fringe benefits, capital gains tax, provisional tax and withholding tax; the 2% tax is applied to the sale price at each change of ownership of property, goods and services and is the only tax on wages. There are no exemptions or thresholds.
In the case of wages, the employer pays the 2% tax on the take home pay. The current take-home net pay of employees will be preserved at present levels and any pay rises or additional income earned eg overtime, will be taxed at only 2%.
In the case of business, the 2% tax on gross sales turnover is collected at the point of sale and in addition, the wages drawn (their nett profit) by businesses operated by sole traders or partners are taxed at 2% as will profits distributed to company directors or shareholders - all tax on profits businesses paid under the old system will be used to reduce the cost of goods and services and to employ more staff.
In the case of financial investments, including bank interest, annuities and pensions of self-funded retirees, the 2% tax is collected by the investment manager at the time pensions, annuities and interest are paid to the investor.
Changes to the Medicare levy will be detailed in the One Nation Health policy.
The 2% tax does not apply to money deposited in or withdrawn from a bank account.
Annual tax returns will be limited to a simple single page that will be able to be completed without the assistance of taxation specialists.
Implementation of the new tax system will be over a three year transition period with the benefits flowing in the first year. Lowering the cost of property, goods, services and labour will reduce the cost of living for Australians by an average of 17 %.
To ensure fairness, equality, acceptance and understanding of the 2% Easytax, One Nation will consult with all stakeholders including State and local governments, unions, employer bodies, welfare groups and other interested parties before the new tax system is introduced and during the transition period.