The $3,000 cap on tax deduction for Income tax adviceJanuary 10, 2019
INCREDIBLE LACK OF BUSINESS ACUMEN BY LABOUR PARTY IN RELATION TO THE $3,000 CAP ON TAX DEDUCTION FOR INCOME TAX ADVICE.
Irrespective of whether you are a Labour voter or not, the proposal by Bill Shorten if Labour wins the next election to cap annual tax deductions for the management of an individual’s income tax affairs is a ridiculous proposal and will have significant negative impact on certain businesses in the small to medium category.
As stated by the Institute of Public Accountants, “it is genuinely and obviously a revenue grab.” The direct effect on taxpayers is that they will be limited in the advice and support they are able to obtain when dealing with complex issues with the Australian Tax Office.
There would not have much effect on the top end of town but certainly on small business.
Apparently this cap will include time and costs involved in dealing with the Administrative Appeals Tribunal, Objections to incorrect Income Tax Assessments, and specialist tax advice as well as certain other associated costs.
The end result of this rubbish is that people who are deserving of certain tax deductions and amendments to incorrect ATO decisions will not be able to access the appropriate resources and will therefore miss out on their rightful result.
Such proposals reflect a total lack of understanding of how business works in Australia.