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(Cairns... Far North Queensland)


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Selwyn Johnston



One person, with the support of the community, can make a difference



Financial Transaction Tax (FTT)


"For 44 years, Multi-Nationals have paid little or no tax!"

(Jim Kilally, Asst. Commissioner, Australian Taxation Office
Sydney Morning Herald 28/1/97)



Financial Transaction Tax Concept

Advantages of the Financial Transaction Tax Concept

Extract from the GST Legislation, Section 165-55  

TAX REFORM and the Financial Transaction Tax (FTT)


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What is the Financial Transaction Tax (FTT)

(A National Debit Tax System)

The FTT Formula...

The FTT Formula is simply an added percentage, one third of one percent (0.33%) is suggested, to the amount withdrawn from all accounts by Banking and Financial institutions.

This tax, when cleared, is instantly deposited through the Electronic Funds Transfer (EFT) system into the National Treasury.

How the Financial Transaction Tax (FTT) Concept Works

Every hour of the day money is withdrawn from savings accounts, cheque accounts, insurance companies, business and investment organisations, and financial institutions of all kinds. Indeed, ALL monetary transactions are withdrawn from some type of bank or financial institution that holds money in trust.

The Australian Payments System Council Report 1991 - 1992, issued by the Reserve Bank of Australia, states that $120 BILLION is withdrawn from banks EVERY WORKING DAY in ordinary business and trading.

Just one simple and moderate Transaction Tax of ONE THIRD OF ONE PERCENT - 0.33% - added on all monies withdrawn provides the National Treasury with annual revenue of $99 BILLION.

A Debit Tax of only 0.33% on DAILY withdrawals of $120 BILLION





(These figures are based on the 1991 - 1992 Reserve Bank Reports of
NON- CASH withdrawals)

The amount of CASH withdrawals made from ATM's and EFTPOS, and withdrawals made on weekends and public holidays are NOT taken into account here. It is estimated that a more realistic figure for 1995 is around $200 BILLION in withdrawals per WORKING DAY.

A Debit Tax of only 0.33% on DAILY withdrawals of $200 BILLION





The Government requires $96 Billion in revenue per year. The National Debit Tax Concept provides the Government with an ANNUAL SURPLUS OF $69 BILLION.

Note 1 : Annual calculations are based on 250 working days ( 52 x 5 day weeks less 10 days in public holidays)

Note 2 : These figures are bases on Reserve Bank of Australia Reports for 1991/1992 and 1995. Current  figures are not available.


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Advantages of the 

Financial Transaction Tax Concept


Some of the advantages of using just one Transaction Tax of only 0.33%

Income Tax and all other Federal Taxes become unnecessary 

No tax on profits, savings, investments, assets or pay cheques

No taxes on income, payroll, provisional, property, inheritance, or goods and services

No income tax means an instant tangible wage rise for everyone

Goods and services will be cheaper without sales tax and import tax

No sales or hidden taxes mean more in the pocket for those in the Welfare System

The method of collecting revenue will be effected by Electronic Transfer Systems (EFT) - the ultimate in efficiency

No more time, money and paper wasted on daunting tax laws and complex tax returns

Tax collectors will be appointed to more productive and useful positions

Accountants employed by businesses, large and small, would be able to use their training and experience in the manner in which it was meant to be used, ie. making business more productive and cost efficient

Small businesses will not be hindered by our present time consuming system, and will consequently be encouraged to grow and employ more people

ALL Multi-National Companies will be required to pay their fair share

NO tax cheating or tax avoidance necessary or possible

It would create a real user pays system

Continuous flow of revenue to the National Treasury

Our large and expanding national debt will be settled very quickly

Australia will become the TAX HAVEN OF THE WORLD

Australia will indeed be the "Lucky Country"

It would allow people to save money for retirement, with no penalties

Our National Fund Reserves would be rebuilt by the increase in savings deposits, deposits encouraged by the Financial Transaction Tax Concept. At present our reserves are at there lowest since the Great Depression.



Our current outmoded Tax System has proven to be complicated and impracticable to businesses and individuals. It has many disadvantages:

It pushes production out of Australia, creating an imbalance in trade and our increasing overseas debt

It is inequitable and unjust

It is costly in time and money

It is complicated

It destroys incentive

It penalizes individuals who wish to succeed

It is taxing on small business

It creates tax avoidance and cheating

Multi-National companies pay little or NO tax

The Financial Transaction Tax Concept Scale - 'A' and 'B' indicates current Tax scale.

Wage/Salary $30,000p/a
($575 p/w)
($675 p/w)
($770 p/w)
($865 p/w)
($960 p/w)
With Tax Free
$131 $166 $204 $246 $289
No Tax Free
$201 $246 $292 $338 $384
$2 $2 $3 $3 $3


'A' - $129

'B' - $199
'A' - $164

'B' - $244
'A' - $201

'B' - $289
'A' - $243

'B' - $335
'A' - $286

'B' - $381

The Australian Taxpayer's personal income tax, accounts for $59 billion of Taxation revenue raised.

The revenue raised on behalf of Company Tax was $12 billion.

The Question: WHY the vast discrepancy?

The Answer: Australian Small businesses and companies pay their taxation commitments by contributing the greater part of the Company Tax raised but...


The government has manipulated the Australian Taxpayer into paying not only their own taxes, but also those of the multi-national companies.

Australians are demanding Taxation Reforms that include the multi-national companies paying the equivalent rate of taxation as that of ALL Australian Small businesses and companies. The THOUSANDS of millions of untaxed Australian dollars being remitted annually to international banks, at the expense of the Australian Taxpayer, MUST STOP NOW.


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 Extract from the GST Legislation, Section 165-55

165-55: The Commissioner may disregard a scheme in making declarations for the purposes of making a declaration under this Subdivision, the Commissioner may: 

a)    Treat a particular event that actually happened as not having happened; and


b)    Treat a particular event that did not actually happen as having happened and, if appropriate, treat the event as:

i)    Having happened at a particular time; and

ii)   Having involved a particular action by a particular entity; and

c)     Treat a particular event that actually happened as:

i)     Having happened at a time different from the time it actually happened; or

ii)    Having involved a particular action by a particular entity (whether or not the event actually involved any action by that entity).

The above piece of Australian Taxation Legislation confirms the words of Mark Twain when he said:

'The World is run by very intelligent people who are having us on, or
by imbeciles who mean what they say.'


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Written and Authorised by Selwyn Johnston, Cairns FNQ 4870