Effects of taxation for option writers: an Australian perspective

Writing an option is a taxable event for Australian investors. This method of taxation penalizes investors who hold open short option positions over the tax year end by accelerating their tax liability relative to the timing of the economic gain from writing options. This paper examines the levels of open interest in the Australian Stock Exchange over the change in financial year to determine whether investors time their transactions to avoid this tax acceleration. The results show that level of open interest is lower in the last month of the financial year after controlling for non-tax determinants of option demand. Copyright (c) The Authors Journal compilation (c) 2007 AFAANZ.

Recent public policy and Australian older workers

This article considers the characteristics and utility of pro-work policies targeting Australian older workers that have emerged in the context of population ageing, amid concerns that this will lead to labour shortages and an increasing social welfare burden. There has been a recent surge in public policy regarding the ageing workforce, the efficacy of which has not been tested by evaluation studies. After considering the conceptual foundations and objectives of various government initiatives, it is argued that the present public policy approach may have serious flaws that are not only detrimental to the stated overall objective of prolonging working lives, but may, in fact, be harmful to older workers and fail to address the needs of business. This stems from programs reaching only a small proportion of those older people who would potentially benefit from assistance, and from misdirected effort aimed at encouraging behavioural change on the part of employers or industries. It is argued that there is a need for greater targeting of policy efforts on the actual needs of industry and for public policy itself to become more age-aware. S (Australian Bureau of Statistics), 2010, Older People and the Labour Market, Australia, 2010 S (Australian Bureau of Statistics), 2010, General Social Survey: Summary Results, Australia, 201

Removing the Australian tax exemption on healthy food adds food stress to families vulnerable to poor nutrition.

OBJECTIVE: To assess the impact of changing the Australian Goods and Services Tax (GST) on household food stress, which occurs when >25% of disposable income needs to be spent on food. METHODS: Weekly healthy meal plan costs for average-income (AI), low-income (LI) and welfare-dependent (WDI) families were calculated using the 2013 Western Australian (WA) Food Access and Costs Survey. Four GST scenarios were compared: 1) status quo; 2) increasing GST to 15%; 3) expanding base to include exempt foods at 10% GST; and 4) expanding base to include exempt foods and increasing the tax to 15%. RESULTS: Single-parent families risk food stress regardless of their income or the GST scenario (requiring 24-42% of disposable income). The probability of food stress in Scenario 1 is 100% for WDI two-parent families and 36% for LI earners. In Scenarios 3 and 4, food stress probability is 60-72% for two-parent LI families and AI single-parent families, increasing to 88-94% if residing in very remote areas. CONCLUSION: There is food stress risk among single-parent, LI and WDI families, particularly those residing in very remote areas. Implications for public health: Expanding GST places an additional burden on people who are already vulnerable to poor nutrition and chronic disease due to their socioeconomic circumstances