IMF Praises Australia’s Tax Management
August 8, 2011 Taxation in Australia
Australia should build upon and continue its recent years’ work in improving the national tax system, in order to facilitate further economic growth and prosperity.
In a new report released on August 7th the International Monetary Fund (IMF) applauded Australia’s recent steps to overhaul the country’s tax regulations, and the government was praised for reducing the national corporate tax rate, introducing the minerals resource rent tax, and its continued efforts to cut top marginal personal tax rates. However in the report, the IMF concluded that further tax changes applied to the resource extraction sector could maximize the benefits garnered from the country’s vast amount of mineral resources.
To encourage raised employment levels in Australia, it was recommended by the IMF that the Australian government should continue its efforts to reduce income tax rates, and raise the tax-free threshold for low paid workers. The government should also investigate means of further simplifying tax filing obligations for businesses, in order to increase compliance and cut administration costs.
To cut latent inefficiencies in the tax system, it was recommended that Australia remove state stamp duties and insurance taxes, as both measures provide little revenues, but are a strong discouragement for inter-state business.
The IMF welcomed Australia’s current efforts to reform the country’s worker education system, business regulations, and infrastructure projects, saying that efficient structural reforms on a national scale can provide long-term benefits to the country’s workforce and economic output.
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