The simple way to stop tax avoidance

December 1, 2025

Michael Keating is right, our government needs more revenue to fund important programs, and the fairest way to get it is to tax all those who are currently paying less than their fair share. This is done via the legal loophole called ‘tax deductibility’ to reduce their ’taxable income’. Every company operating in Australia takes advantage of this, but none do it better than the transnationals. By organising over-priced, inter-company loans, they can shift the profits they earn here to any tax haven in the world. They must think we are stupid… and we are.

The solution is as obvious as it is efficient. Instead of taxing ’taxable income’ at 25 per cent or 30 per cent, tax locally-earned revenue at 1 per cent. One cent in the dollar, is not too much to pay for the use of our markets, our social capital and our infrastructure. In fact it’s a bargain! Apart from saving the ATO billions in admin fees, and the business sector billions in accountancy fees, a revenue tax would stimulate microeconomic reform by eliminating wasteful spending. For example, it would make many practices that are currently considered economic, uneconomic; luxury vehicles, ostentatious offices, designer furniture, glamorous conferences, executive lunches, and so on.