Kostkas Tax philosophy

Kostkas has provided tax agent services since 1957.  Over 60 years we have learnt a few things about Tax.

Tax is a necessary Evil.

Dachshund, Poodle, Great Dane, Blue Heeler, Pekingese are all breeds of  Dogs:

Income Tax, CGT, FBT, Rates, Stamp Duty, Budget Repair Levy, Medicare Levy are breeds of taxes.

Not surprisingly the majority of people would like to pay less tax. That said most of us or someone close to us have received the benefit of Australia’s Tax System through health care, education, national parks  etc etc. It’s difficult to deny that Australians generally enjoy a better quality of life due to our tax system.

The problem seems to be around how much tax we pay and how that tax is spent.

Kostkas will help you minimize your tax by advising on suitable tax structures;  educating you on tax deductions relevant to your circumstances.

Kostkas will not assist you avoid or evade your tax responsibilities.

So you really feel strongly about how your tax is spent? Our best advice would be to join a political party and get tax and spending on the agenda.

The Tax Agent is your Tax Guide; The ATO is the Tax Police.

One of Jerry Kostkas favourite sayings was  “ You’re too poor not to pay tax”.  What he meant was that for many individuals and small business the risk of taking on the ATO is simply not economic. The ATO is large and cumbersome but they have extensive powers and the ability to look back a long way.

Kostkas would warn you about “tax effective” investments. If  the words “tax effective” are removed will it be a good investment? Not much point reducing your tax if you lose your capital or worse still end up owing a financier.

Who can remember  the “Bottom of the Harbour” tax schemes? The lesson here is even if it is legal at the time, if it’s immoral; unethical or just smells bad, the Australian Government can and does use retrospective legislation to make it illegal and backdate the law.

Tax the Future Challenge: Over the next 20 to 30 years we see an increasing problem for the Australian Tax System due to globalisation. Modern technologies make it increasingly easy for Individuals and Corporations to choose where they will allocate capital and pay tax.  In Australia we are already seeing a growing trend where high consumers of public services contribute very little or nothing to the tax system and those who contribute vast amounts to the tax system consume very little by way of public services. This growing imbalance needs to be understood. The challenge for Australia will be to retain those high wealth individuals and corporations that contribute not only taxes but employment opportunities; goods & services and innovation. Rupert Murdoch and Frank Lowy are just two clear examples of the migration of taxation; capital; opportunity and innovation from Australia.