I have woken up this morning feeling battered and empty. I want to call a relationship counsellor, find a halfway house, a domestic violence hotline, but none of these will provide any help to me because my abuser is my government.
Australia relies more heavily on personal income tax than almost any other developed country. Our current Canberra establishment like to trot out the fact that we have one of the lowest tax to GDP ratios in the OECD (siting between 29% and 30%), but that doesn’t paint a realistic picture of life here.
As farmers and small business owners, my husband and I have reconciled ourselves to the fact there isn’t much to show at the end of the day. Farming is a vocation more than a profession- it’s your whole life- and it is a choice that we have made for ourselves.
On paper, we have two successful businesses (in addition to farming) that should put us very firmly into the “living well” category. We don’t take trips (the whole farmers thing), my car is 15 years old while my husband drives the “new” (it’s 6-years old) farm Ute, and we live in a century-old house that could really use a renovation, but the money always goes into the businesses. We home school our youngest and the others attend a regional grammar school that they travel to daily (4 hours per roundtrip) as boarding is too expensive. We purchased a second home in the regional town where our older children attend school a couple of years ago as a retirement plan. With farming and our businesses, there has never been enough of a cushion to set up superannuation, so that investment seemed like a wise option even if it stretched us to capacity. We want to make sure that we have something to fall back on so that we can keep the farm to pass along to the kids. Everything we do, like most parents, is to safeguard our children’s future. To give them the best shot at realising their dreams and building successful lives.
In recent years, we have been struggling under a tax burden that seems heavier with each passing month. Whether it is struggling to pay the last year’s tax or come up with the funds to cover our PayG (for those not in small business, businesses must pay a quarterly “advance” income tax based on the previous year’s tax amount, regardless of the financial realities of the business in the current financial year), it never stops. There are times where we have been on a payment plan for the last year’s tax, a payment plan for the next year’s tax, a payment plan for the GST that we had to use to pay the last tax bill… It’s not a lack of fiscal discipline on our part- our personal expenses are minimal. It is trying to carry the cost of living with the current personal tax burden for small business owners. Almost everyone we know in our small, regional community is in the same boat.
Last year, I became so concerned about making ends meet, I took a second (fourth?) job. I was working over 80-hours a week juggling farm, my husband’s business admin, my fully booked wedding business and a senior event coordination role for our second biggest city in WA. The additional income that was meant to help us get ahead instead bounced us up a tax bracket and as a result, much of the extra salary I earned ended up going to the ATO. I ended up in the hospital with bleeding ulcers. The doctors couldn’t pinpoint any other cause than stress. It was a catastrophe. “You would have been financially and physically better off never having taken that job,” my accountant said. It was a brutal reminder that we have reached a moment in this country where working harder no longer translates to increased success. If you earn it, they take it. And then they have the audacity to say we have a national mental health crisis.
The budget announcement last night was one step too far. And do you know what got me the most? It wasn’t the debacle with Capital Gains that will now impact so much more than real estate, it wasn’t the fact that this new trajectory will cripple young Australians from accruing any kind of personal wealth or being able to set up protected assets for their families, it wasn’t that they again are screwing small business to the wall and are clearly setting their sights on implementing an inheritance tax next- all of that was bad, don’t get me wrong, but what really broke me was when that absolute tragedy of a treasurer stood there with his smug smile and proudly announced that they were putting $250 back into Aussies’ pockets with a special tax offset- a “cost of living relief.” It was the most tone-deaf, insulting, patronising political theatre I have ever witnessed. When was the last time this man visited a grocery store? A petrol station? Literally anywhere outside of Parliament House? Does he understand just what $250 buys in Australia at the moment? To announce it in that way, as this tremendous generosity on the part of the ruling party, is actually disgusting. It’s gross. It's Marie Antoinette letting them eat cake. It’s the Sheriff of Nottingham scattering a few pennies on the ground while his henchmen take all the winter food stores. It’s criminal thievery and this government is culpable.
But we can’t talk about the solutions because to bring up the issues driving the imbalance is politically incorrect.
Want to highlight unregulated immigration as a straining factor? You’re a xenophobic racist.
Want to investigate NDIS fraud guzzling millions of dollars each year? You’re an ableist conspiracy theorist.
Want to examine ill-conceived Net Zero targets crippling economic growth and development? You’re obviously an environmental terrorist.
It’s exhausting. These people are exhausting. They are destroying this beautiful country and we all know it and nothing changes. Because we are all too busy trying to keep our heads above water to kick down their door and throw them out. And so they rob us blind, they destroy our home and we just say thank you for the $250 that they hand us on the way out.
How does this stop?