Step 4 – Taxation Reform

Bank Transaction Tax

Too great a proportion of Australia’s tax is now bled from low and middle income earners, seniors and small businesses.

We will initiate a finance, bank and tax review, with a complete reform of the tax system. We advocate replacing the Personal Income Tax, Carbon Tax, GST and the other many “hidden” and “dual taxes” with a single, flat transaction tax across the board on all bank transactions, to be administered by the banks.

With a flat transaction tax, there will be no need for income tax, GST, business taxes, or any other taxes.

Our current Constitution states clearly that a tax shall not exist upon another tax. By implementing a single tax, collection will be simplified, eliminating confusion and iniquities within the system. And by eliminating Business Tax companies will no longer be required to waste countless man hours on filling in taxation forms.

We need to implement a Royal Commission investigation into the tax department to determine which properties they have sequestered to recover “defaulting” tax payments. People and families that have been unfairly hurt by current taxation policies should have the opportunity to present their case to recover their money and/or their property.

By implementing a flat bank transaction tax administered by the banks we will eliminate unfair taxation and penalties on citizens.

Our Ultimate Aim

Once our nation is financially stable we will calculate the Gross National Product each year and distribute any profit back to tax paying citizens on a pro-rata basis as a reward for contributing your time and effort to make Australia great.

The pro-rata rate will be calculated on a number of factors, including years in the job, income, position, etc. This will encourage people to gain a better education so that they can achieve a better life for themselves and their family.


Bringing in the following changes to the taxation system will be subject to a referendum of the people:

  • All taxes currently levied to be dismissed.
  • Only the National Parliament shall legislate to collect taxes.
  • Taxation legislation shall not be varied to provide incentives or rewards to individuals or corporations.
  • Taxation legislation and regulations shall be used only for the purpose of taxation.

Currently all sorts of variations to the tax system are used as incentives or rewards to individuals, businesses, etc. These variations create enormous complications and greatly increase the complexity of tax administration. It is more appropriate that, distinct from tax legislation, specific legislation be enacted to create incentives, etc.

Automatic Electronic Transaction Tax

Except for inter-bank transactions, a single Automatic Electronic Transaction Tax (AEDT) shall be levied on all bank transactions and other financial institutions.

As part of every transaction, banks and financial institutions shall electronically debit a percentage of the amount withdrawn and automatically transmit those funds to the Central Bank of the Australian Commonwealth as they occur.

This system of tax collection has been proven in Australia in the past and can be introduced and administered with minimal costs. Before being abolished as part of the GST agreements, a Transaction Tax was administered by banks on behalf of most State Governments. Furthermore, until recently it was the tax system used in Norfolk Island instead of income tax.

Until the People voting at referendum decide otherwise, an Automatic Electronic Transaction Tax of 0.1% shall be levied on all withdrawals from banks and other financial institutions with the exception of inter-bank transfers.

An AEDT of only 0.1% tax, (one dollar in a thousand dollars) could generate enough revenue under current financial transaction history to obviate the need for the Goods and Services Tax (GST). That means all items except most food would be immediately 10% cheaper; businesses would be relieved of the huge administrative burden of collecting GST and submitting Business Activity Statements; and the Tax Office would be relieved of the burden of administering GST.

The Automatic Electronic Transaction Tax (AEDT) system has been much maligned by economists trained in contemporary economics courses because Transaction Tax was not a subject included in those courses. Legislation separate from the tax system shall be used to achieve economic outcomes in certain sectors of the economy such as providing incentives, restraining economic activity or to penalise undesirable activities.

The arguments for and against the AEDT include the following:

  1. It is a “flat tax” and therefore “regressive” rather than the more desirable “progressive” tax. This argument fails to recognise that, under AEDT, ‘the more you spend, the more tax you pay’.
  2. The “cascade effect”. This is the effect on the cost of, say, manufactured goods when multiple transactions subject to AEDT occur during the manufacturing process. A National Parliamentary Library researcher has calculated that a full 0.1% AEDT (ie, a tax that would eliminate ALL taxes including income tax) would add as little as 25% to the end price of some manufactured goods. This is minimal when compared to the cascade effect of income tax on say, a manufacturing process involving multiple components and multiple workers subject to income tax.
  3. The AEDT is a “turnover tax” that contemporary economists consider “bad”. However, after WW2 the German “economic miracle” that occurred was largely due to the primary source of revenue being a turnover tax that, in 1957 was 4%!
  4. Some businesses will avoid the AEDT by using such ruses as barter. It is indisputable that, under any tax regime, some people will try and avoid paying their fair share. However, this will be minimal in a system extracting just $1 in $1000 and legislation would outlaw any corporate schemes that do emerge.

The fact is, the AEDT is the most efficient and cost effective taxation system ever devised and it could be adjusted in incremental stages to eliminate all other taxes. The abolition of all other taxes would remove a huge administrative burden from business and the Tax Office and mean the humble taxpayer would not be required to keep records and would not be required to submit annual tax returns. Furthermore it would free up enormous resources in the accounting profession currently tied up in unproductive record keeping, tax compliance and monitoring activities. These resources could then be redirected to the purposes for which they were designed – assisting business and government to better manage their core activities.

The AEDT system shall not be varied to achieve economic aims other than taxation.

Property Title Levy

The National Parliament shall be responsible for policy on property title levies in accord conditions imposed in the Constitution after a referendum of the people. The Regions shall be responsible for implementing this policy and collecting levies. These funds shall be remitted to the Central Bank of the Australian Commonwealth.

Private Banks and Other Private Financial Institutions

Private banks and financial institutions shall not issue credit.

Private banks and financial institutions may accept deposits from individuals and corporations. Such deposits shall attract interest of no more than 3% and may be loaned out by financial institutions at interest rates of no more than 5% reducing1.

A statutory authority, the Banking, Share Trading and Insurance Regulatory Authority shall regulate the lending of depositors funds.

Private banks and financial institutions may borrow money from the Central Bank of the Australian Commonwealth. Such borrowings shall be at a fixed interest rate of 3% per annum reducing. Private financial institutions may lend that money to individuals or corporations. Interest payable on such loans shall be fixed and the rate shall be a maximum of 5% per annum reducing (a 2% markup).

Citizens or corporations other than Banks and Financial Institutions may borrow money from the Central Bank of the Australian Commonwealth at the fixed interest rate of 5% per annum reducing. The fact that the rates are fixed means that borrowers can be confident repayments will not escalate during the term of the loan as is now the case.

The Banking, Share Trading and Insurance Regulatory Authority shall impose a code of lending practice on private banks and financial institutions. The Regulatory Authority shall monitor and enforce compliance to ensure that, except in the case of venture capital and for research and development, loans are adequately secured and the repayment of principal and interest is assured.

Private banks and financial institutions may charge a fee for service. The Regulatory Authority shall regulate and monitor bank and financial institution “fees for service”.

Private banks and other financial institutions shall not be authorized to borrow money overseas.

All loans by banks and financial institutions to individuals and corporations shall be at a maximum interest rate of 5% per annum reducing.

Interest rates prescribed in the Constitution shall not be changed except by the People voting at referendum.

Repayment and security for all loans shall be negotiated in each case.These interest rates mean that there is a moderate cost for loan funds that is within the means of all Australians whether the loans are for business or private use.

1. ‘Reducing’ means that interest is calculated only on the amount of the loan outstanding at any one time.

Debit Cards

Private financial institutions may issue debit cards for use in Australia and overseas. Payments overseas shall incur the 10% surcharge applicable to money going out of Australia.

Credit Cards

Credit cards shall be illegal.


Our objective is to reduce red tape to the barest minimum. Many states have introduced legislation to assist or control small business. Generally, this has also increased the amount of red tape and we have seen a bloating of the public service and bureaucracy as a result. We have also seen the introduction of Globalisation and its affects on manufacturing and small business as most Australian owned companies are taken over by the multinationals, with help from foreign owned banks and the weak Australian dollar. Federal and State governments seem hell-bent on selling off all our assets, which is already causing increased charges for just about all the necessities of life.

The Coalition Liberal/Labor Governments call this good management.

We do not.

We say their high-cost policies have failed.

Our tax reforms are designed to produce the opposite result. We plan to reduce taxation, finance and fuel costs, and introduce tariffs on imports, putting this country back on a truly level playing field so that Australian industry and business is sustainable and competitive.

Controlling taxation and the banking system by the government will ensure that we can financially compete internationally on our terms.


Tariffs or quotas on imports will be re-introduced to enable Australian industry and business to compete with foreign products without having to reduce our wages or standard of living to those countries that employ people on virtual slave labour rates.

Click on the pointing finger for the next part of the Plan…


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