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!