If you joined me in thinking the Federal Government had shied away from any commitment to serious tax reform a week ago, you probably shared my enthusiasm on Tuesday night when it did an about-face in its Budget announcement.
The 2010-2011 Federal Budget, which the government labelled a ‘no-frills’ affair, was indeed no fiscal revolution. It did, however, mark the first ‘real’ step towards the kind of tax reform the country – or at least us tax professionals – were waiting for following the release of the Henry tax review.
I’m talking about the announcement of a standard $500 tax deduction and a simplified personal tax return process that will benefit around five million Australians.
Simplified individual tax returns are a good thing. Why? Not only will a simpler system relieve many Australians of the chore of wading through more than 200 pages of the annual tax pack, but it will also provide an opportunity for accountants and tax agents to focus more of their efforts on helping clients with truly complex tax affairs.
At the end of the day, accountants provide strategic tax and business advice, and the more the tax system allows time for them to do that, the better.
There were, of course, other measures announced in the Budget too. Have a look at the Institute’s response and the report we put together with Thomson Reuters on the Chartered Accountants website.
Friday, May 14, 2010
Wednesday, May 5, 2010
Is this tax reform?
Well there has been no shortage of commentary on the Henry tax review, which was released on Sunday, 2 May.
Over the last couple of days, we have heard from economists, academics, advisers, policy experts and pundits from all sectors of industry as to whether the government’s initial response to the review constitutes the beginning of ‘real’ tax reform.
Most of the reaction has centred on the government’s response to the review, rather than the review itself. For those of you who followed the Institute’s initial reaction, you will know that I think the government on Sunday fell short of an important commitment to change Australia’s tax system for the better.
As I discussed in my last post, there was always a chance the government would shy away from making too many decisions too quickly. Particularly the difficult ones. But while I understand the political climate does not favour wholesale reform on the scale of which was expected under the terms of reference for the review, there is an important opportunity here that Australia cannot afford to squander if it is to remain a competitive, thriving economic hub.
When you look at Dr Henry’s package of recommendations there are so many feasible options that the reasons for change quickly outweigh the reasons for inaction. This is a comprehensive, well thought-out review that provides a clear roadmap for the future. What we need now is commitment from the decision-makers.
I am interested in your thoughts.
Henry tax review member survey
There is a lot happening at the Institute now that the review has been announced. First, I have already started to prepare for the Institute’s comprehensive response to the Henry tax review, which we will publish over the coming weeks.
I am hoping to get as much member participation as possible. To help the process along, we have created an online survey which sets out all of the recommendations made in the Henry report, and asks whether you agree, disagree or are undecided on each issue. We will also be conducting state-based member feedback sessions in the coming weeks to explore the key themes further.
Please note the survey is only open to Chartered Accountants – as we will use this information to feed into the Institute's ‘official’ response – but if you are not a member and have comments, I invite you to share them.
Post-Henry conference 21-23 June
The fun doesn’t stop there. In June, we will be hosting a conference at our Sydney offices that will bring together leading international tax and economic policy experts to dissect the plan for Australia’s Future Tax System. Dr Ken Henry himself will be there to listen to the academic community’s ‘verdict’ on his report.
The conference is being organised by UNSW and Monash University, and will run from 21-23 June, 2010. Registrations are now open.
It is an event not to be missed!
Over the last couple of days, we have heard from economists, academics, advisers, policy experts and pundits from all sectors of industry as to whether the government’s initial response to the review constitutes the beginning of ‘real’ tax reform.
Most of the reaction has centred on the government’s response to the review, rather than the review itself. For those of you who followed the Institute’s initial reaction, you will know that I think the government on Sunday fell short of an important commitment to change Australia’s tax system for the better.
As I discussed in my last post, there was always a chance the government would shy away from making too many decisions too quickly. Particularly the difficult ones. But while I understand the political climate does not favour wholesale reform on the scale of which was expected under the terms of reference for the review, there is an important opportunity here that Australia cannot afford to squander if it is to remain a competitive, thriving economic hub.
When you look at Dr Henry’s package of recommendations there are so many feasible options that the reasons for change quickly outweigh the reasons for inaction. This is a comprehensive, well thought-out review that provides a clear roadmap for the future. What we need now is commitment from the decision-makers.
I am interested in your thoughts.
Henry tax review member survey
There is a lot happening at the Institute now that the review has been announced. First, I have already started to prepare for the Institute’s comprehensive response to the Henry tax review, which we will publish over the coming weeks.
I am hoping to get as much member participation as possible. To help the process along, we have created an online survey which sets out all of the recommendations made in the Henry report, and asks whether you agree, disagree or are undecided on each issue. We will also be conducting state-based member feedback sessions in the coming weeks to explore the key themes further.
Please note the survey is only open to Chartered Accountants – as we will use this information to feed into the Institute's ‘official’ response – but if you are not a member and have comments, I invite you to share them.
Post-Henry conference 21-23 June
The fun doesn’t stop there. In June, we will be hosting a conference at our Sydney offices that will bring together leading international tax and economic policy experts to dissect the plan for Australia’s Future Tax System. Dr Ken Henry himself will be there to listen to the academic community’s ‘verdict’ on his report.
The conference is being organised by UNSW and Monash University, and will run from 21-23 June, 2010. Registrations are now open.
It is an event not to be missed!
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