Liberals want a punting tax

[426]

The NSW government wants to copy the Victorian government and impose a 25% tax on services in brothels. So a basic $100 R&T becomes $125; and those cheapo $150/hr full service jobs become $220/hr. Persumably, the more expensive joints become exorbitantly expensive.

The hypocrisy of the liberal party has no bounds. O'Farrell is doing this as he is flogging off the electricity for a quarter of its value and allowing shooters in our parks. Tony Abbott will undoubtedly blame the pricing of carbon and more unlicensed brothels will open.

[altgourami]

Imposing something like this is just going to drive WLs and operators underground... it's the thin edge of the wedge to criminalisation of the sex industry. Thanks religious right!

[Sergaent Brody]

So hooker only for those who can most afford ... Sounds pretty right wing to me

[CommanderM]

For your information here is the full article on this:

http://www.crikey.com.au/2011/11/22/police-not-councils-should-regulate-brothels/

[Travelmate]

What the fuck...
Are they going to give out more license?

[berger123]

I don't think this tax will raise much revenue. I don't know of any hookers who pay taxes in the first place, so how is the government going to collect their 25% cut?

[426]

The idea of taxing sex is as old as human society. If no government has worked out how to do in 10,000 years how will the liberals? Obviously they can't. It will just force more Asian workers into unlicensed brothels. It's a stupid policy direction.

However, this policy is not about revenue. It is a much more fundamental issue of social control that the liberals find themselves increasingly being drawn into because if their alliance with moral crusaders. This is the reason behind have a sectarian crusader as their federal leader and state leaders totally compromised with the lunar right.

[aussiegaigin]

The NSW government wants to copy the Victorian government and impose a 25% tax on services in brothels. So a basic $100 R&T becomes $125; and those cheapo $150/hr full service jobs become $220/hr. Persumably, the more expensive joints become exorbitantly expensive.

There is always the possibility of a market backlash reducing the cost of a $100 session down towards $80 (+20 tax) therefore not changing the current status quo.

[426]

There is always the possibility of a market backlash reducing the cost of a $100 session down towards $80 (+20 tax) therefore not changing the current status quo.

Yes, I suppose so but then it will just reduce the income of the working girl. Her profit margin will go to the government. Given the financially desperate situation most working girls are in; a far more likely scenario is that these women will seek employment with less scrupulous operators outside the licensing, and taxation, system.

[aussiegaigin]

Yes, it could come back on the girl, but at $100/hr shop price, the girl would make $40-50 which is not bad for unskilled labour. Admittedly some girls would not work continuously for a 10 hr shift, bur that would in some ways reflect their own skill at attracting/retaining customers.

In a massage shop, the girls would get aound $20-30/hr from the shop on a $50-60/hr booking, plus the opportunity for the $50 nude HJ upsell. I wish I could earn $70/hr

[426]

The one certainty is that the brothel owners and pimps won't wear the tax. So it will come down to either the punter paying more or the girl earning less.

Take the example of one of the most popular brothels on this forum. They do a 33:67 split, so for a one hour job at $150 the girl takes home $100 and the mamasan $50. Factor a 25% O'Farrell tax into this and the mamasan is certainly not going to her reduce her take.

The woman, meanwhile, will not be prepared to prostitute herself for less than $100 an hour. You losers, pushing pens for $30/hr, might this is a good wage. But it ain't when you factor in the risks, long term health and psychological costs of prostituting oneself. $100/hr is the bare minimum for this work.

[426]

I should point out that I am one of these said "losers" so I hope nobody takes the above comment personally.

[Travelmate]

This is not going to affect majority of the general market.

It hurts only the legal cauc shop more, even they do not report everything to tax office

[426]

This is not going to affect majority of the general market.

It hurts only the legal cauc shop more, even they do not report everything to tax office

No, I think you are wrong. Lots of the cheapo Chinese knocking shops, like 533 and 64, are licensed and operate on a big turn over, small profit margin. These are the shops that will be most affected by this tax and will have no alternative but to pass the cost onto punters.

[Sergaent Brody]

Yes, it could come back on the girl, but at $100/hr shop price, the girl would make $40-50 which is not bad for unskilled labour. Admittedly some girls would not work continuously for a 10 hr shift, bur that would in some ways reflect their own skill at attracting/retaining customers.

In a massage shop, the girls would get aound $20-30/hr from the shop on a $50-60/hr booking, plus the opportunity for the $50 nude HJ upsell. I wish I could earn $70/hr

You forget the fact that they take off their clothes and their dignity for your money ...

Such a naive and disrespectful statement to make

[DeepImpact]

I can't believe this guy Barry. It's just unbelievable. When he got elected I thought that all of our problems were over. There he was - handsome, fit, super intelligent and ready to fix all of our problems. I really did suspect that at night time he would wear a superman outfit he was that good.

But now look what's happened in the last week......

First I go caught in a traffic jam last week, I mean friggen hell I thought they were going to be a thing of the past when he got elected and all lights were going to be green for me from now on. Then it rained for most of the week which shocked me as I was expecting nothing but sunshine once he became premier. Now just to top it all off he is going to try and stop us taxpayers enjoying some time with another consenting adult by trying to increase the price. Barry, Barry, Barry what do you think happened when taxes on cigerettes went up - the black market increased and they don't pay any tax. He should get back to the real issues. Does he really think the cops want to be bothered with this type of thing when there are people out there J walking the streets

[Travelmate]

No, I think you are wrong. Lots of the cheapo Chinese knocking shops, like 533 and 64, are licensed and operate on a big turn over, small profit margin. These are the shops that will be most affected by this tax and will have no alternative but to pass the cost onto punters.

But most customers pay CASH!
and those transaction is not registered on the book.

[426]

But most customers pay CASH!
and those transaction is not registered on the book.

Even though the transactions are in cash, the brothel is a registered business and must submit tax returns. It might not declare the full extent of its earnings, but it still under an obligation to reveal its financial status and is still, just as any business, liable to ATO audits.

I said earlier that a common split in the high turnover, low profit margin, brothels is 67:33. Hypothetically, under this arrangement both parties can agree to pay a proportion of their income into a tax fund. So the $150/hr job is $100 to the worker, $50 to the brothel. Both then could set aside 10 percent for tax and only declare one in every three jobs. The ATO gets a tax return, the brothel gets it margin and the worker gets her wage. The liberal party's idea of imposing a 25% tax on all brothel transaction would skewer this cosy little arrangement because neither the brothel nor the worker would be prepared to take such a hit to their bottom line. If you don't believe then look what is happening in Melbourne where their liberal government is now implementing this tax.

[Travelmate]

well said.
The middle layer of business always got hit the most!
of course!