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Footnotes

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[1] Now part of the Department of Parliamentary Services.

[2] Transcript of Evidence, Blandthorn, 28 July 2003, pp. 4-5

[3] Submission 59, Festival of Light, p.2.

[4] Transcript of Evidence, Beard, 28 July 2003, p. 54.

[5] Submission 48, Renton, p.1.

[6] Submission 86, Endeavour Forum, p.1

[7] Submission 32, Brad Finegan, p.1

[8] Transcript of Evidence, Blandthorn, 28 July 2003, pp.8-9

[9] Submission 53, Women's Action Alliance, p. 8

[10] Family Assistance Office, Family Assistance Guide, http://www.facs.gov.au/faguide

[11] 2004 Budget Paper No. 2, Part 1.

[12] 2004 Budget Paper No. 2, Part 1.

[13] Transcript of Evidence, Beard, 28 July 2003, p. 47.

[14] Transcript of Evidence, Blandthorn, 28 July 2003, p. 5.

[15] Transcript of Evidence, Blandthorn, 28 July 2003, p. 5.

[16] Transcript of Evidence, Davidson, 29 July 2003, p. 32.

[17] Submission 83, Catholic Welfare Australia, p. 11

[18] Commonwealth Ombudsman, Own Motion Investigation into Family assistance administration and impacts on Family Assistance Office Customers, p.6.

[19] Commonwealth Ombudsman, Own Motion Investigation into Family assistance administration and impacts on Family Assistance Office Customers, p.6.

[20] Commonwealth Ombudsman, Own Motion Investigation into Family assistance administration and impacts on Family Assistance Office Customers, pp. 11-12.

[21] The scheme was announced by Minister Vanstone on 19 September 2002, in a press release entitled FTB Fine Tuning More Choice and Flexibility for Families. A fact sheet on the package is available in a range of languages at the following internet address: http://www.familyassist.gov.au/Internet/FAO/FAO1.nsf/Publications/mhf.html.

[22] Commonwealth Ombudsman, Own Motion Investigation into Family assistance administration and impacts on Family Assistance Office Customers, p.10.

[23] Submission 44, Shop Distributive and Allied Employees Association, p. 38.

[24] Submission 83, Catholic Welfare Australia, p. 11

[25] Transcript of Evidence, Beard, 28 July 2003, p. 47.

[26] Transcript of Evidence, Davidson, 29 July 2003, p. 32.

[27] Transcript of Evidence, Wicks, 28 July 2003, p. 38.

[28] Transcript of Evidence, Hatfield Dodds, S, 28 July 2003, p. 29.

[29] Submission 44, Shop Distributive and Allied Employees Association, p. 51.

[30] Submission 44, Shop Distributive and Allied Employees Association, p. 51, citing the Department of Family and Community Affairs Annual Report 1999-2000.

[31] Transcript of Evidence, Toohey, 28 July 2003, p. 66.

[32] Transcript of Evidence, Blandthorn, 28 July 2003, p. 10.

[33] Transcript of Evidence, Beard, 28 July 2003, p. 49.

[34] Submission 44, Shop Distributive and Allied Employees Association, p.71

[35] Transcript of Evidence, Beard, 28 July 2003, p. 52.

[36] Transcript of Evidence, Beard, 28 July 2003, p. 52.

[37] Submission 39, Griffith University, p. 13.

[38] Transcript of Evidence, Hatfield Dodds, L, 28 July 2003, p. 20.

[39] Submission 62, Country Women's Association of NSW, p. 5.

[40] Submission 87, Tony and Veronica Addicoat, pp. 1-2.

[41] Submission 60, WA Farmers Federation, p. 4.

[42] Transcript of Evidence, Davidson, 29 July 2003, p. 38.

[43] Senate Community Affairs References Committee, Transcript of Evidence, Saunders, PR,
27 May 2003, p. 444.

[44] Submission 61, Institute of Chartered Accountants in Australia, p. 19

[45] Submission 70, CPA Australia, p. 13

[46] Submission 65, Southside Chamber of Commerce, p. 3.

[47] Submission 61, Institute of Chartered Accountants in Australia, p. 19

[48] Submission 44, Shop, Distributive and Allied Employees Association, p. 23.

[49] Transcript of Evidence, Blandthorn, 28 July 2003, p. 3.

[50] Buddelmeyer, Dawkins, Freebairn and Kelb (2004) Bracket Creep, Effective Marginal Tax Rates and Alternative Tax Packages, the Melbourne Institute, p.3.

[51] Submission 85, ACOSS, p. 9.

[52] Submission 61, Institute of Chartered Accountants in Australia, p. 20

[53] Submission 70, CPA Australia, p. 13

[54] Submission 53, Women's Action Alliance, p. 2.

[55] Submission 101, Department of the Treasury, p. 18.

[56] Buddelmeyer, Dawkins, Freebairn and Kelb (2004) Bracket Creep, Effective Marginal Tax Rates and Alternative Tax Packages, the Melbourne Institute, p.13.

[57] Submission 85, ACOSS, p. 22.

[58] Submission 97, Queensland Government, p. 2.

[59] Submission 74, UnitingCare, p. 1

[60] Submission 64, St Vincent de Paul Society, p. 11.

[61] Submission 50, Nilson, p. 4.

[62] Submission 44, SDA, p. 24.

[63] Submission 101, Treasury, p. 18, footnote omitted.

[64] Submission 98, Department of Family and Community Services, p. 17.

[65] Fairness and Flexibility: Reform of the Workforce Age Social Security Payments in Australia, June 2003, p. 90.

[66] Submission 97, Queensland Government, p. 3, footnote omitted.

[67] Following the 2004/05 budget the 'taper rate' for Family Tax Benefit A reduced to 20 cents in the dollar, consequently reducing the EMTRs for FTB(A) recipients.

[68] In addition, of course, they pay the medicare levy of 1% from this dollar, and if they have HECS, a HECS debt repayment of 4% would be payable in 2003/04, but not from 2004/05.

[69] After the 2004/05 budget, this would be somewhere in excess of 50% due to the reduction in the Family Tax Benefit A taper rate.

[70] Keating & Lambert (1998) From Welfare to Work: Improving the Interface of Tax and Social Security, NATSEM Discussion paper no. 35, October 1998.

[71] Keating & Lambert (1998) From Welfare to Work: Improving the Interface of Tax and Social Security, NATSEM Discussion paper no. 35, October 1998, p. 21.

[72] Keating & Lambert (1998) From Welfare to Work: Improving the Interface of Tax and Social Security, NATSEM Discussion paper no. 35, October 1998, p. 4. For clarity, it should be noted that Keating and Lambert did not endorse this radical version.

[73] Dawkins, Beer, Harding, Johnson and Scutella (1998) "Towards a Negative Income Tax system for Australia," The Australian Economic Review vol 31, no. 3, p. 254.

[74] Dawkins, Beer, Harding, Johnson and Scutella (1998) "Towards a Negative Income Tax system for Australia," The Australian Economic Review vol 31, no. 3, p. 254.

[75] Information from this section is from the UK Inland Revenue website (www.inlandrevenue.gov.uk) and in particular from the publication Child Tax Credit and Working Tax Credit An Introduction.

[76] Earned Income Credit, US Department of the Treasury, Internal Revenue Service Publication 596.

[77] US Department of the Treasury, Internal Revenue Service Publication (2003), Instructions for completing Income Tax Form 1040A, 2003 Earned Income Credit (EIC) Table, pp. 45 49.

[78] Table adapted from Centrelink (2003) Building and Using your Working Credits.

[79] Dawkins, Beer, Harding, Johnson and Scutella (1998) "Towards a Negative Income Tax system for Australia," The Australian Economic Review vol 31, no. 3, p. 246.

[80] Submission 98, Department of Family and Community Services, p. 10.

[81] Submission 70, CPA Australia, p. 16.

[82] Economics A-Z, www.economist.com

[83] Transcript of Evidence, Blandthorn, 28 July 2003, p. 3.

[84] Submission 64, St Vincent de Paul Society, p. 9.

[85] Transcript of Evidence, Wicks, 28 July 2003, p. 33.

[86] Submission 76, Rider & Stewart, p. 2, fn.3.

[87] Submission 65, Southside Chamber of Commerce, p. 9.

[88] Transcript of Evidence, Wicks, 28 July 2003, p. 33.

[89] Submission 53, Womens Action Alliance, p. 1.

[90] Submission 64, St Vincent de Paul Society, p. 12.

[91] Submission 89, Kenny, p. 1, fn. 2.

[92] Submission 64, St Vincent de Paul Society, p. 9.

[93] Submission 78, Catholic Health Australia, p. 13.

[94] Submission 78, Catholic Health Australia, p. 13.

[95] Submission 74, UnitingCare, p. 1

[96] Senate Community Affairs References Committee, A hand up not a hand out: Renewing the fight against poverty, p. 55.

[97] Submission 98, Department of Family and Community Services, p. 6.

[98] Submission 104, ACCI, p. 3.

[99] Submission 62, Country Women's Association of NSW, p. 5.

[100] Treasury, Australia's Demographic Challenges, p.1.

[101] Submission 101, Department of the Treasury, p. 18.

[102] Submission 98, Department of Family and Community Services, p. 26.

[103] Transcript of Evidence, Davidson, 2 December 2003, p. 11.

[104] Transcript of Evidence, Davidson, 2 December 2003, pp. 23-24.

[105] Transcript of Evidence, Covick, 2 December 2003, p. 24.

[106] Submission 61, Institute of Chartered Accountants in Australia, p. 29.

[107] Submission 108, Association of Superannuation Funds of Australia, p. 2.

[108] Submission 44, Shop, Distributive and Allied Employees Association, p. 28.

[109] Submission 93, Hemlof, p. 2.

[110] Submission 74, UnitingCare Australia, p. 2.

[111] Australian Tax Office, Entering the Australian Tax System What You Need to Know, p.4.

[112] Sir Nicholas Montagu, Tax Morality: Paying Tax as a 'Badge of Citizenship', Speech to the National Institute of Economics and Business, Canberra, October 2003.

[113] Senate Economics References Committee, Inquiry into Mass Marketed Tax Effective Schemes and Investor Protection (February 2002), p. 18.

[114] Submission 45, Lang, p. 1.

[115] Submission 7, McIlwain, p.1.

[116] Submission 9, Booth, p. 1.

[117] 'Pay As You Earn', a previous descriptor for income tax.

[118] Submission 34, Smith, p. 1.

[119] Breusch & Wilson (2004) "After the Tax Revolt", Australian Journal of Social Issues, Vol 39 No. 2 May 2004.

[120] Adapted from Breusch & Wilson (2004) "After the Tax Revolt", Australian Journal of Social Issues, Vol 39 No. 2 May 2004, Table 4.

[121] A Tax System Redesigned, July 1999 p. 243.

[122] Submission 65, Southside Chamber of Commerce, p. 18.

[123] Transcript of Evidence, Wicks, 28 July 2003, p. 44.

[124] Submission 89, Kenny, p. 14, quoting Pederick, W (1984) Fair and square taxation in Australia.

[125] Sir Nicholas Montagu, Tax Morality: Paying Tax as a 'Badge of Citizenship', Speech to the National Institute of Economics and Business, Canberra, October 2003.

[126] Board of Taxation Taxation of Discretionary Trusts, November 2002, p. 6.

[127] Transcript of Evidence, Wicks, 28 July 2003, p. 33.

[128] Submission 50, Nilsson, p. 6.

[129] CCH Master Tax Guide 2004, 6-060, p. 179.

[130] CCH Master Tax Guide 2004, 6-110, p. 185.

[131] Income Tax Assessment Act 1936, s. 99A. Note that the Commissioner has the discretion to allow the trust's income to be assessed under the normal progressive income tax rates (s.99) if it would be unreasonable to tax the earnings at the full marginal rate.

[132] Board of Taxation Taxation of Discretionary Trusts, November 2002, p. 13.

[133] Board of Taxation Taxation of Discretionary Trusts, November 2002, p. 14.

[134] Submission 83, Catholic Welfare Australia, p. 7.

[135] Transcript of Evidence, Davidson, 29 July 2003, p. 28.

[136] Submission 85, ACOSS, p. 18.

[137] Submission 103, Construction, Forestry, Mining and Energy Union, p. 1.

[138] Submission 103, Construction, Forestry, Mining and Energy Union, pp. 2-3.

[139] Submission 103, Construction, Forestry, Mining and Energy Union, pp. 1-2.

[140] A Tax System Redesigned, July 1999 pp. 287-8.

[141] Transcript of Evidence, Covick, 2 December 2003, p. 9.

[142] Submission 2, Barber, p. 1.

[143] Submission 34, Smith, p. 1.

[144] Submission 101, Treasury, pp. 9-10.

[145] Australian Taxation Office, Making it Easier to Comply, July 2003, p. 32.

[146] Submission 38, Taxpayers' Research Foundation, Attachment A, McKerchar, M Complexity, Compliance and Fairness: A study of personal income taxpayers in Australia, pp. 10-12.

[147] Cash Economy Task Force, The Cash Economy under the New Tax System, September
2003, p. 1.

[148] Transcript of evidence, Granger, 12 September 2003, p. 28.

[149] Transcript of evidence, Lewis, 12 September 2003, p. 4.

[150] Transcript of evidence, Ryan, 12 September 2003, pp. 17-18.

[151] Australian National Audit Office, ATO Progress in Addressing the Cash Economy, Report No. 35 of 2001-02, March 2002, p. 24.

[152] Schneider, Braithwaite and Reinhart (2001) Individual behaviour in Australia's shadow economy: Facts, empirical findings and some mysteries, Centre for Tax System Integrity, p. 1.

[153] Schneider, Braithwaite and Reinhart (2001) Individual behaviour in Australia's shadow economy: Facts, empirical findings and some mysteries, Centre for Tax System Integrity, p. 3.

[154] Schneider, Braithwaite and Reinhart (2001) Individual behaviour in Australia's shadow economy: Facts, empirical findings and some mysteries, Centre for Tax System Integrity, p. 30.

[155] Transcript of proceedings, Richardson, 12 September 2003, p. 2.

[156] Transcript of proceedings, Lewis, 12 September 2003, p. 3.

[157] Australian Taxation Office, Cash Economy Task Force, Terms of Reference.

[158] House of Representatives, Hansard, The Hon. J. Chifley MP, 15 May 1942, pp. 1285-86.

[159] South Australia v Commonwealth (First Uniform Tax Case) (1942) 65 CLR 373.

[160] Victoria v Commonwealth (Second Uniform Tax Case) (1957) 99 CLR 575 at 601 per
Dixon CJ.

[161] The Committee wishes to acknowledge the assistance provided by the Commonwealth Grants Commission Librarian in preparing this historical section.

[162] Sydney Morning Herald, 6 March 1959, p. 3.

[163] Sydney Morning Herald, 6 March 1959, p. 5.

[164] Mathews and Jay (1972) Federal Finance: Intergovernmental Financial Relations in Australia since Federation Thomas Nelson, Sydney, p. 241.

[165] Mathews and Grewal (1997) The Public Sector in Jeopardy: Australian Fiscal Federalism from Whitlam to Keating, Centre for Strategic Economic Studies, Melbourne, p. 305.

[166] Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations (April 1999) cl. 8.

[167] Review of Commonwealth-State Funding, Final Report (August 2002) p. 231.

[168] Submission 55, NSW Government, p. 7.

[169] Submission 88, Premier of Victoria, p. 3.

[170] Submission 46, Treasurer of Tasmania, p. 2.

[171] Submission 109, Premier of South Australia, p. 3.

[172] Submission 97, Queensland Government, p. 16.

[173] A referendum in 1988, which sought to recognise local government in the Commonwealth Constitution, was unsuccessful. The proposal obtained less than 40 per cent support in each State and Territory. The ACT, as a city-state, is in the unusual position of having no local government, in the sense that the Territory government carries out the functions normally carried out by local government.

[174] 2004 Budget Paper no. 3.

[175] Submission 90, Australian Local Government Association, p. 7.

[176] Submission 63, Municipal Association of Australia, p. 14.

[177] Submission 67, Alcohol and other Drugs Council of Australia, pp. 5-6. These bullet points are an excerpt from a longer list. References have been omitted.

[178] Submission 80, Winemakers Federation of Australia, passim.

[179] Submission 80, Winemakers Federation of Australia, p. 6.

[180] Submission 67, Alcohol and other Drugs Council of Australia, pp. 10-11. References omitted.

[181] 2004 Budget Paper no. 2.

[182] Submission 77, Australian Associated Brewers, p. 5.

[183] Submission 67, Alcohol and other Drugs Council of Australia, pp. 12 and 15. References omitted.

[184] Senate Economics Legislation Committee, Report on the provisions of the Excise Tariff Amendment Bill (No. 1) 2002 and the provisions of the Customs Tariff Amendment Bill (No. 2) 2002, October 2002, p. 12.

[185] Debit Tax Council of Australia. Attachment to submission 19, Carey.

[186] See, for instance, submissions 4 (Turner), 12 (Ciesiolka), 13 (Canden), 19 (Carey) 25 (Bradford), 30 (Bishop), 35 (Jackson), 36 (Knowles), 37 (Fedczyna), 42 (Sugden), 43 (Glover), 68 (Wilson).

[187] Attachment to submission 25, Bradford.

[188] Submission 35, Jackson, p. 2.

[189] Submission 37, Fedczyna, p. 1.

[190] www.debittax.com.au

[191] Submission 36, Knowles, p. 1.

[192] Submission 13, Canden, p. 1.

[193] Submission 4, Turner, p. 1.

[194] Payments System Board Annual Report 2003 p. 6.

[195] Rounded to the nearest $100 million.

[196] Budget Paper no. 1.

[197] Attachment to submission 19, Carey.

[198] Attachment to submission 25, Bradford.

[199] DeGroot (1998) Australian Tax Policy Reform is needed, but is a Single Debit Tax the answer? Australian National Internships Program, p. 19.

[200] The Committee is grateful to the Parliamentary Library for providing this example.

[201] DeGroot (1998) Australian Tax Policy Reform is needed, but is a Single Debit Tax the answer? Australian National Internships Program, pp. 21-22.

[202] Payments System Board Annual Report 2003 p. 7.

[203] DeGroot (1998) Australian Tax Policy Reform is needed, but is a Single Debit Tax the answer? Australian National Internships Program, pp. 19-20.

[204] Transcript of evidence, Warren, 2 December 2003, p. 22.

[205] Transcript of evidence, Warren, 2 December 2003, pp. 22-23.

[206] Transcript of evidence, Davidson, 2 December 2003, p. 12.

[207] Transcript of Evidence, Gregory, 2 December 2003, p. 6.

[208] Transcript of evidence, Davidson, 2 December 2003, p. 11.

[209] Transcript of evidence, Gregory, 2 December 2003, p. 24.

[210] Transcript of evidence, Davidson, 2 December 2003, p. 14.

[211] Transcript of evidence, Covick, 2 December 2003, p. 15.

[212] Submission 108, ASFA, p. 6.