The ALP has supported The Australia Institute's proposed "Buffett Tax", known elsewhere as an AMT (Alternative Minimum Tax). This is well worth consideration during the tax reform process. But commentators have overlooked the fact that the existing non-commercial loss rules already impact taxpayers earning more than $250,000 in a similar way as proposed - which will reduce the potential savings
Under the proposal, anybody earning over $300,000 would be subject to a minimum tax rate of 35c in the dollar. Frontbencher Anthony Albanese outlined the proposal at the ALP’s National Conference in Melbourne on Friday, with Fairfax reporting he told the conference it was a “disgrace” that 75 Australians who earned more than a million a year in 2011-2012 paid no tax at all. The proposal was adopted unopposed at the conference. The 'Buffett rule' is named after US billionaire Warren Buffett, who famously said he shouldn’t be paying a lower tax rate than his secretary.