Tax Cuts or Investment in our future?

Treasurer Scott Morrison and his team are busy preparing the Australian Budget (or if thy already have, busy preparing how to sell it to the Australian people!

He has come up with 2 fundamental concepts – that if he lives by it – can be great for Australia. These concepts have been ingrained in the psyches of every successful SME!!!

1. More money most come in than go out … And there are a number of ways to do it – below are some of them 
– Increase revenue
– Decrease expenditure 
– Increase both – but ensure revenue increases more than expenditure 
– Borrow money – to build something that will generate future revenue that will come from future benefits 
– or Print it!! – a luxury that SME’s don’t really have the ability to do!!

2. Start off a conversation or a transaction with the mindset or thought….

“How can I help the person on the other side of that table win today?’”

“How can I add value to you?”

“What can I do to make your life better than it currently is? Or if you are pretty satisfied… How can I help you maintain your current status quo?”

“How can I back you?”

What I have learned in business over the years, is that people are prepared to pay for things that they believe will add value to them! 
Give people what they want and you will get what you want!!

The interesting thing is that the Australian Government – since I have been in Australia (over the past 30 years) have provided amazing value to Australian Citizens…. And as an Australian Citizen, I am so privileged to have the opportunities and lifestyle that Australia has afforded me:-

  • -1st world infrastructure – planes, trains, cars, ferries, buses, buildings, parks, Internet, communications, TV, Cable, shopping centres, beaches etc etc   – we have  it all – sure things can be improved – but we’re in a journey!!
  • The tyranny of distance is becoming a non issue – and in fact an advantage for us – what with Internet, Mobile, travel etc 
  • Education – school, universities, trades and VET – every person has an opportunity to learn and upskill.
  • Healthcare – I reckon it rates with the best the world has to offer 

  • Support for innovation and investing in Property  – Australia has never been as well supported as it is today – with 100s of incubators around the country and Superannuation now looking to invest in innovation, technology and private equity. I believe that people will invest in technology and innovation if they believe it is good for them to do so…  

here’s a thought….. why not give incentives for people to invest in Innovation, similar to negative gearing inentives!! Money will flow where people think they get the best return!! 

Should NEGATIVE GEARING BE CHANGED?  I THINK NO!! People who use this strategy will probably not be reliant on government in their later years.

  • – Wherever you go around the world – there are ambassadors (our youngsters and friends and supporters of Australia – who are travelling and living overseas )
  • – Travel an hour from anywhere and be part of the best nature reserves the world has to offer! 
And on and on….

From what I have seen around the world, Australia is the envy of the world – as a place to live and be a part of!!!!

Sure, there is an enormous amount of work still to do ….. And an enormous amount of money and infrastructure and continuous improvement for us to invest in…..

Here’s a thought….. If you focus on reducing expenditure – you can only reduce your expenditure to 0 – and when you do that – all is destroyed.If you focus on the upside – it’s not that relevant what you spend – if you earn more …. And there is no limit to the upside that you can create! 

In my view – continue to focus on investing on infrastructure, on education, on innovation. Spend more, continue to build and improve infrastructure, support the innovators , entrepreneurs and business builders – invest in building value – and the money will come – it always does.

If you give people what they want – price is not an issue – people want to pay for value – they just don’t want to feel that they are paying for something they are not getting……

Instead of focussing on tax cuts – focus of how you can serve your constituents better …. And if you are already are – make them feel that you are providing an amazing service!!!!

Don’t get me wrong – I am all for bigger tax cuts…. But what I will be doing with the money saved – is spending it elsewhere – Mr Morrison, show me how I can use that money saved to “back you” to keep Australia as the best place to live!!

Not sure how congruent the comment below is to this article!!!

What do you think?

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