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Richard Snowden
Partner
Richard Snowden
Partner
T +61 2 9296 2193
John Edstein
Partner
T +61 2 9296 2129
Sydney
John Edstein
Michelle Levy
Richard Snowden
Melbourne
Michael Clough
Phillip Davies
Perth
Australia’s Future Tax System Review Panel headed by Dr Ken Henry, which is undertaking a major review of the tax system, today released three further consultation papers for public input. The papers report on the submissions received to date, provide some discussion of what the Panel believes are the major issues and outline further questions which the Panel seeks input on in order to complete their final report in December 2009.
The further papers are:
- Australia's Future Tax System - Consultation Paper - Summary
- Australia's Future Tax System - Consultation Paper
- Australia's Future Tax System - Retirement Income Consultation Paper.
The Review Panel has identified seven broad issues which frame the consideration of reform:
- the type of society in which Australians might choose to live, including considerations about the role and size of government in Australia
- increasing globalisation and the changing pattern of world economic activity
- demographic change, including changing patterns of workforce participation
- climate change, the environment and sustainable economic growth
- intergovernmental relationships within the Australian federation
- the process of policy formation and administration, and
- the role of technological progress.
The papers note various principles that should be considered in design of a new system, including equity, operating costs, sustainability, consistency with Government policy, and avoidance of structural distortions between different types of income and capital.
Other areas considered include the personal tax and transfer systems, the three pillar retirement system (government provided age pension, compulsory savings through the superannuation guarantee levy and voluntary savings via superannuation).
The papers also confirm the need for Australia to be better equipped to compete in an international business environment and ways this may be improved, and also whether the complexity in the tax system can be reduced and transparency increased. Also touched on are not-for-profit organisations and whether a reform of the concessions is needed.
The Panel is seeking supplementary submissions which can be made up to 1 May 2009. They have also noted that there will be further consultations, a series of technical papers to provide a basis for ongoing debate, and a high level conference to consider the major issues.
The closing date for retirement income submissions is earlier than the above, being 27 February 2009.
A link to the papers can be found here.