Australia Needs Tax Reform Commission

June 18, 2014 Uncategorized

tax reform in AustraliaSYDNEY – Australia needs to thoroughly reexamine how changes to the national tax system are picked, refined, and implemented, as the current tax system is in a inadequate state to help the country proper.

Earlier this week the Australian wing of the accounting firm Ernst & Young issued a new report claiming that the tax system in Australia is “not good enough”, and that a Tax Reform Commission should be established to help transform the tax system from its current state of “disarray” into something that is more competitive in the current financial environment.

According to the experts of Ernst & Young, the current tax system does not encourage or promote growth among local businesses, nor does it draw in foreign investment, and, in addition, any changes which have been made to taxation recently were too heavily influenced by political interest and promises, rather than actual needed change.

In the newly published report it was acknowledged that calls for tax system reform are common, but it was pointed out that many of these calls are focused on an improving a particular issue, and not at all on improving the actual process of how changes to the tax system are discussed, refined and implemented.

In order to improve the current situation, the government was recommended to establish a Tax Reform Commission, to be tasked with regularly conducting a strategic review of the state of the current tax system, consulting on specific tax issues and providing advice to the government, carrying out “maintenance reviews”, and performing “post implementation” reviews of new tax rules.

In the report it was pointed out that in the past the Australian economy was able to thrive even with an inefficient tax system, as the economy was buoyed by a high demand for the country’s mineral exports, however, with cooling demand and prices for such products, there is very little room for inefficiency in the tax system.

Photo by: Martin Howard