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To illustrate the potential fallout, the senator referenced the UK’s experience with taxing non-domiciled residents ("non-doms"). The policy was expected to generate significant revenue but resulted in the opposite effect: many non-doms withdrew their investments and moved their wealth out of the country. This example served as a cautionary tale, warning that similar policies in Australia could drive productive individuals and investments abroad.
The Fight for a Productive Economy
The overarching concern remains that aggressive tax policies on productive sectors could stifle economic growth. The senator warned that Labor's focus on raising taxes on assets and sectors crucial for economic output might have unintended adverse consequences.