It’s time to start a conversation about tax reform
30 March 2015: The Federal Government today published its long-awaited tax reform discussion paper which first impressions suggest is a wide-ranging document posing broad-based questions.
But a closer look reveals a lot more, according to David Watkins, Deloitte Partner, Tax Insights and Policy.
“The paper is intentionally simple in its language and approach, with very broad overarching consultation questions, which opens up its scope enormously,” he said. “However, looking more closely at the content, it is possible to see some indicative directions which Treasury would like the community to focus on.
“For example, there is significant discussion around the short and long-term economic benefits of reducing the company tax rate, a debate about the continuing relevance of the imputation system and a fresh look at the exemptions which may indicate a broadening of the GST base.
“Certain key taxation no-go zones, such as death duties or making the family home subject to Capital Gains Tax, appear to be preserved, given their ‘light touch’ in the paper.”
Chris Richardson, Partner, Deloitte Access Economics, added: “We welcome the release of the tax discussion paper as the first step in building consensus for the key reforms Australia needs to consider if we are to build a better and fairer tax system.
“This is a conversation our nation needs to have, in order to work towards a future that is both prosperous and fairer for all Australians.”
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000 professionals, all committed to becoming the standard of excellence.
About Deloitte Australia
In Australia, the member firm is the Australian partnership of Deloitte Touche Tohmatsu. As one of Australia’s leading professional services firms, and winner of both the Australian Financial Review/CFO Audit Firm of the Year and Accounting Firm of the Year awards 2013, Deloitte Touche Tohmatsu and its affiliates provide audit, tax, consulting, and financial advisory services through approximately 6,000 people across the country. Focused on the creation of value and growth, and known as an employer of choice for innovative human resources programs, we are dedicated to helping our clients and our people excel. Formore information, please visit Deloitte’s web site at www.deloitte.com.au.
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Touche Tohmatsu Limited
© 2015 Deloitte Touche Tohmatsu