Dear Hon Julia Gillard MP,
I am writing this open letter to you in hope that this time you sit up and pay some attention to the public, remember us? The people that you are supposedly representing?
Over the past few months, we have seen some major policy changes that can only be viewed as revenue grabbing. As a self-employed accountant I see the outrage each and every day from my clients and the general public, who are sick of having their hard earned money attacked again, and again.
My recommendation is that after 5 years in government, it is time that you look at your job like any business owner should, you are after all in the business of running a country! If you haven’t noticed you are racking up a heap of debt and need to have a look at your spending and define where all the money is going.
As people we have been subjected to taxation changes over the last month or so, and yet we haven’t even got to the budget or been told where our hard earned money will be spent yet.
Firstly, you attack the superannuation industry. You want people just like my clients to save more for their retirement via superannuation. Then, at the same time, if my clients do the right thing and save (supposedly too much), you will penalize them with extra taxes – please explain that mixed message as I, and the general public, are very confused. How would you like me to advise my clients when you won’t guarantee them a secure and comfortable retirement but penalize them for establishing their own retirement fund?
Secondly, you decide to increase the Medicare Levy from 1.5% to 2.0% for every Australian (and that’s if someone has private health insurance – if they don’t, they will be paying 3.0%). For many Australians, all this is on top of paying a fortune for Private Health Insurance, which on average goes up about 5% each and every year. When is enough, enough?
As an accountant, let me give you some free advice (or maybe I should charge you – please provide an address where I can send an invoice too)? If you can’t see the bleeding obvious, maybe you should have a look at your spending rather than just saying that tax revenue has dropped. Since the Labor party has been in office, we have been subjected to the insulation bats saga, the school buildings bonanza, as well as the Stimulus Package in 2009 where individuals received a cheque payment of $900 (this alone cost tax payers $42 million). By the way, I had clients residing overseas that received it along with relatives of clients that had passed away (not really great spending if I do say so myself).
It is quite simple, no business can spend more than they earn and survive in the long run. Along with this, every business should always have a buffer in their bank account to cover unexpected occurrences that may arise. Why is the Federal government that you are supposedly in control of consistently spending more than what is coming in? Would any other business owner get away with such ludicrous discrepancies?
Finally, as with any business, if the team or people you surround yourself with can’t make this happen, then coach them, and if it still doesn’t resolve your issues, maybe get a better team around you to help!
The last few years would show that it is time to get a team around you that can control spending and balance the books in the positive rather than the negative. Surely this would be a better strategy than continually attacking the Australian public via different tax or levy hikes because you can’t manage your books and get this country into a surplus.
On behalf of my clients and the Australian public, I plead that leading into the budget announcements on the 14th of May you revisit the budget, cut the wasteful spending of our money, and work towards creating a surplus.
Feel free to visit my business website at www.zjl.com.au and download some of the free brochures and resources on how to run a business and manage your money successfully. Also I will be running a free 2013/14 Budget Update seminar on the 21st of May, Hon Julia Gillard MP you are more than welcome to join us as we discuss your budget update and the affects it will have on my clients.
Peter Locandro CPA