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sataris

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I'm not sure how much more clearly I can spell this out. This is directly from the Greens website.

The Greens plan includes:
  • A 6% annual tax on the global net wealth of Australia’s 122 billionaires.
That is simply not possible, in any way, shape or form, if a person is not an Australian resident for tax purposes. If any of these people move themselves to another jurisdiction for tax purposes (which would be highly likely if such a plan became reality) there would be no mechanism for applying this tax.

I suggest you go and speak to the US, because their citizens are taxed on their global income.

It can be done, you just need a government whose able to negotiate tax treaties with other countries.

Many of the US ex-pats I know are double taxed and are quite resentful about it.
 

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Carn The Berries

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I suggest you go and speak to the US, because their citizens are taxed on their global income.

It can be done, you just need a government whose able to negotiate tax treaties with other countries.

Many of the US ex-pats I know are double taxed and are quite resentful about it.
You're confusing global income with global wealth. They are 2 entirely different concepts.

Australian tax residents are also taxed on their foreign income (to the point that they haven't been equally taxed in the source country).

I'm not aware of any jurisdiction in the world that taxes its residents (for tax purposes) on their global WEALTH.
 

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sataris

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You're confusing global income with global wealth. They are 2 entirely different concepts.

Australian tax residents are also taxed on their foreign income (to the point that they haven't been equally taxed in the source country).

I'm not aware of any jurisdiction in the world that taxes its residents (for tax purposes) on their global WEALTH.

I'm not a money talking guy but AFAIK. Most financial institutions report financial activity back to the relevant tax authority, it's part of FINRA requirements already. Finding the wealth isn't that problematic. They already know.

Re The bolded is not really an issue. 150 years ago you wouldn't have found any jurisdiction that allowed women to vote. So someone will always have to be the first.

But we know that the current Australian government doesn't want to lead the nation anywhere, except backwards.
 

Demonic Ascent

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Another excuse .... transparent.
What are you asking me to prove wrong? My position is companies and individuals who avoid tax by using offshore tax havens and dodgy front companies should be cracked down on and made to pay their rightful contributions. I don't know what you are asking me to prove wrong.
 

Maggie5

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Tax the current residents for tax purposes when they are no longer residents for tax purposes?

How exactly will that happen?
I worked in Vanuatu for 12 months in 2002. Vanuatu is tax free but I had to pay tax on it in Australia.

As an Australian resident, you are taxed on your worldwide income. This means you must declare all income you receive from foreign sources in your income tax return.
 

Gralin

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I worked in Vanuatu for 12 months in 2002. Vanuatu is tax free but I had to pay tax on it in Australia.

As an Australian resident, you are taxed on your worldwide income. This means you must declare all income you receive from foreign sources in your income tax return.
yeah and some places have reciprocal tax laws and some don't
 

sataris

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Gee I really hope either Labor or the Greens have some appetite for real tax reform if Labor win.

I hope so too.

I just hope they don't require filing tax returns from every single citizen, regardless of where they live.

I'm not currently a tax resident, nor am I a billionaire, nor am I costing the tax payer anything (unless you want to count embassies/passports etc).

It would just feel like stealing from the bottom to pay the people at the top.

Because all of this is much easier, than actually taxing billionaires :/
 

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Carn The Berries

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I worked in Vanuatu for 12 months in 2002. Vanuatu is tax free but I had to pay tax on it in Australia.

As an Australian resident, you are taxed on your worldwide income. This means you must declare all income you receive from foreign sources in your income tax return.
I'm not sure how many different ways I can say this, I am talking about the plan to tax GLOBAL WEALTH (not income). That is what the proposed policy is saying and my argument is if someone is no longer an Australian resident (for tax purposes) this is utterly impossible.

The current rules around taxing of foreign INCOME have been in place for quite some time.
 

Maggie5

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I'm not sure how many different ways I can say this, I am talking about the plan to tax GLOBAL WEALTH (not income). That is what the proposed policy is saying and my argument is if someone is no longer an Australian resident (for tax purposes) this is utterly impossible.

The current rules around taxing of foreign INCOME have been in place for quite some time.
Not impossible, just the appetite.
 

Gralin

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Wealth is just saved/residual income. ie at some point it is income. ie at some point it can be caught by income tax provisions.
we should definitely have wealth taxes though

most of the wealth is inter generational and never gets taxed when the assets are transferred

not to mention how easy it is for the billionarres to acquire assets as replacement for income
 

Number37

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I'm not sure how much more clearly I can spell this out. This is directly from the Greens website.

The Greens plan includes:
  • A 6% annual tax on the global net wealth of Australia’s 122 billionaires.
That is simply not possible, in any way, shape or form, if a person is not an Australian resident for tax purposes. If any of these people move themselves to another jurisdiction for tax purposes (which would be highly likely if such a plan became reality) there would be no mechanism for applying this tax.

Part IVA anti-avoidance measures.

If the purpose to change residence is to avoid tax you will get pinged under Part IVA.
 

Carn The Berries

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Part IVA anti-avoidance measures.

If the purpose to change residence is to avoid tax you will get pinged under Part IVA.
Good luck getting that to hold up when the tax is seeking to do something that has never been done before. Does that mean every person who is no longer a resident is avoiding tax if they move (given their global wealth could be taxed)?
 

Gralin

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Good luck getting that to hold up when the tax is seeking to do something that has never been done before. Does that mean every person who is no longer a resident is avoiding tax if they move (given their global wealth could be taxed)?
so just between you and me
Twiggy or Clive?
 

sataris

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we should definitely have wealth taxes though

most of the wealth is inter generational and never gets taxed when the assets are transferred

not to mention how easy it is for the billionarres to acquire assets as replacement for income

Problem I see with that is double taxation. Or are we setting a limit where there will be a tax-free threshold?

If I've already paid tax on $15,000. Why do I need to pay tax again on it to give it to someone else?
 

Number37

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So you're advocating people's savings (wealth) be taxed again, despite them already paying PAYG on it?

There are plenty of ways of not paying tax on income. Let's crack down on those loopholes/design features.
For example: CGT Rollovers are very popular with rich folk to avoid Capital Gains Tax, forever, despite potentially going from 10's of k's to millions in wealth.
 

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