❓ WA Minister Kobelke addresses concerns regarding the ATO potentially taxing victims of a finance broking scandal on recouped funds, despite significant losses. He expresses dissatisfaction with the Federal Treasurer's lack of engagement and pledges to continue advocating for the victims.
AnsweredQoN 252Legislative Assembly
QuestionView source ↗
FINANCE BROKING INDUSTRY, VICTIMS
I am concerned about the way in which the Australian Taxation Office is treating victims of the finance broking scandal. Would the minister please advise the House of the problems the victims are facing and what can be done to assist them? Mr KOBELKE
I am concerned about the way in which the Australian Taxation Office is treating victims of the finance broking scandal. Would the minister please advise the House of the problems the victims are facing and what can be done to assist them? Mr KOBELKE
AnswerView source ↗
I thank the member for some notice of this question, and I acknowledge his continuing representations on behalf of people in Albany who have been caught by the finance broking scandal. The member has alluded to another problem that has emerged. Potential rulings of the Australian Taxation Office could affect the victims of finance brokers. There is a ridiculous situation in which people may have taken two or three years to reclaim some of the funds they invested. For example, out of a $100 000 investment, they may have recouped only $40 000. The current understanding is that the tax office will deem the interest earned over the two or three years as part of the money recouped. Even though a person may have lost over half his investment, some of the money recouped is likely to be treated as interest income and tax will have to be paid on it even though he has lost large amounts of money. We have sought clarification through the Australian Taxation Office but we are not satisfied that the people who are already victims will not be victimised further. Over two weeks ago, I wrote to the federal Treasurer and sought to meet him to drive home how serious this issue is and how the federal Government cannot victimise further people who have already suffered enough. My letter has been followed up with many phone calls, but the Treasurer seems to be busy with other things. Maybe he thinks that the damage by his colleagues in the previous State Government has been done to such an extent that he does not want to get involved. I will continue to push him, because the State Government will not allow the Australian Taxation Office to get its hands in the pockets of the victims of the finance broking scandal and take money from them when those people are already losers.
Mr KOBELKE replied: I thank the member for some notice of this question, and I acknowledge his continuing representations on behalf of people in Albany who have been caught by the finance broking scandal. The member has alluded to another problem that has emerged. Potential rulings of the Australian Taxation Office could affect the victims of finance brokers. There is a ridiculous situation in which people may have taken two or three years to reclaim some of the funds they invested. For example, out of a $100 000 investment, they may have recouped only $40 000. The current understanding is that the tax office will deem the interest earned over the two or three years as part of the money recouped. Even though a person may have lost over half his investment, some of the money recouped is likely to be treated as interest income and tax will have to be paid on it even though he has lost large amounts of money. We have sought clarification through the Australian Taxation Office but we are not satisfied that the people who are already victims will not be victimised further. Over two weeks ago, I wrote to the federal Treasurer and sought to meet him to drive home how serious this issue is and how the federal Government cannot victimise further people who have already suffered enough. My letter has been followed up with many phone calls, but the Treasurer seems to be busy with other things. Maybe he thinks that the damage by his colleagues in the previous State Government has been done to such an extent that he does not want to get involved. I will continue to push him, because the State Government will not allow the Australian Taxation Office to get its hands in the pockets of the victims of the finance broking scandal and take money from them when those people are already losers.
I thank the member for some notice of this question, and I acknowledge his continuing representations on behalf of people in Albany who have been caught by the finance broking scandal. The member has alluded to another problem that has emerged. Potential rulings of the Australian Taxation Office could affect the victims of finance brokers. There is a ridiculous situation in which people may have taken two or three years to reclaim some of the funds they invested. For example, out of a $100 000 investment, they may have recouped only $40 000. The current understanding is that the tax office will deem the interest earned over the two or three years as part of the money recouped. Even though a person may have lost over half his investment, some of the money recouped is likely to be treated as interest income and tax will have to be paid on it even though he has lost large amounts of money. We have sought clarification through the Australian Taxation Office but we are not satisfied that the people who are already victims will not be victimised further. Over two weeks ago, I wrote to the federal Treasurer and sought to meet him to drive home how serious this issue is and how the federal Government cannot victimise further people who have already suffered enough. My letter has been followed up with many phone calls, but the Treasurer seems to be busy with other things. Maybe he thinks that the damage by his colleagues in the previous State Government has been done to such an extent that he does not want to get involved. I will continue to push him, because the State Government will not allow the Australian Taxation Office to get its hands in the pockets of the victims of the finance broking scandal and take money from them when those people are already losers.
Mr KOBELKE replied: I thank the member for some notice of this question, and I acknowledge his continuing representations on behalf of people in Albany who have been caught by the finance broking scandal. The member has alluded to another problem that has emerged. Potential rulings of the Australian Taxation Office could affect the victims of finance brokers. There is a ridiculous situation in which people may have taken two or three years to reclaim some of the funds they invested. For example, out of a $100 000 investment, they may have recouped only $40 000. The current understanding is that the tax office will deem the interest earned over the two or three years as part of the money recouped. Even though a person may have lost over half his investment, some of the money recouped is likely to be treated as interest income and tax will have to be paid on it even though he has lost large amounts of money. We have sought clarification through the Australian Taxation Office but we are not satisfied that the people who are already victims will not be victimised further. Over two weeks ago, I wrote to the federal Treasurer and sought to meet him to drive home how serious this issue is and how the federal Government cannot victimise further people who have already suffered enough. My letter has been followed up with many phone calls, but the Treasurer seems to be busy with other things. Maybe he thinks that the damage by his colleagues in the previous State Government has been done to such an extent that he does not want to get involved. I will continue to push him, because the State Government will not allow the Australian Taxation Office to get its hands in the pockets of the victims of the finance broking scandal and take money from them when those people are already losers.
I thank the member for some notice of this question, and I acknowledge his continuing representations on behalf of people in Albany who have been caught by the finance broking scandal. The member has alluded to another problem that has emerged. Potential rulings of the Australian Taxation Office could affect the victims of finance brokers. There is a ridiculous situation in which people may have taken two or three years to reclaim some of the funds they invested. For example, out of a $100 000 investment, they may have recouped only $40 000. The current understanding is that the tax office will deem the interest earned over the two or three years as part of the money recouped. Even though a person may have lost over half his investment, some of the money recouped is likely to be treated as interest income and tax will have to be paid on it even though he has lost large amounts of money. We have sought clarification through the Australian Taxation Office but we are not satisfied that the people who are already victims will not be victimised further. Over two weeks ago, I wrote to the federal Treasurer and sought to meet him to drive home how serious this issue is and how the federal Government cannot victimise further people who have already suffered enough. My letter has been followed up with many phone calls, but the Treasurer seems to be busy with other things. Maybe he thinks that the damage by his colleagues in the previous State Government has been done to such an extent that he does not want to get involved. I will continue to push him, because the State Government will not allow the Australian Taxation Office to get its hands in the pockets of the victims of the finance broking scandal and take money from them when those people are already losers.
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