Australia’s Future Tax System Review
The Australia’s Future Tax System Review was established by the Rudd Government in 2008 to examine Australia’s tax and transfer system, including state taxes, and make recommendations to position Australia to deal with the demographic, social, economic and environmental challenges of the 21st century.
The Review took a ‘root and branch’ approach and examined Australian and State government taxes, and interactions with the transfer system in order to make recommendations to position Australia to deal with the demographic, social, economic and environmental challenges that lie ahead.
Since being established in 2008, the Panel provided many opportunities for people to make a submission and engaged with the community through public meetings and focus groups, meetings with representative business and community groups, discussions with other government departments and agencies, and through its tax and transfer policy conference held in June 2009.
Around 1,500 formal submissions were received, canvassing a wide-range of issues of concern to the community – an extremely rich source of information which helped the Panel shape its recommendations.
In addition, a two-day conference in June 2009 provided an opportunity for leading international experts and a range of academics and stakeholders to debate leading edge tax and transfer policy issues.
The Government’s initial response to the report can be found at www.futuretax.gov.au.
The Federal Government today revealed in its much-anticipated response to the Henry tax review that it will lift compulsory superannuation contributions from 9 to 12 per cent by 2020. The Government’s move to increase compulsory superannuation goes against the Henry review recommendations, which instead preferred changing the rate of tax on compulsory contributions to make the system more equitable.
Key points of today’s announcement include:
- Lifting compulsory superannuation from 9 to 12 per cent by 2019-20
- More Government payments for low-income workers into their superannuation
- Compulsory super payments for those over 70 and concessions on contributions for those over 50
- A reduction in company tax from 30 to 28 per cent by 2015
- Small business to benefit from company tax cut from 2012
- Other write-off concessions for small business
- Miners to be hit with a 40 per cent tax on above normal profits
- An infrastructure fund to be paid to the states each year to start at $700 million in 2012
Professional Accounting bodies
Chartered Accountants http://www.charteredaccountants.com.au/henryreview
Miners vow fight against new tax http://www.cpaaustralia.com.au/cps/rde/xchg/cpa-site/hs.xsl/knowledge-policy-henry-tax-review.html
Henry tax review fills Rudd’s too-hard basket http://www.abc.net.au/news/stories/2010/05/02/2888148.htm?WT.mc_id=newsmail
Related: The Australia Government Budget 2010
The Australian Federal Government http://www.budget.gov.au/
The Australian http://www.theaustralian.com.au/in-depth/budget
National Australian Bank http://www.nab.com.au/wps/wcm/connect/nab/campaigns/37?WT.mc_id=UJU&WT.mc_ev=click&WT.srch=1
Commonwealth Bank of Australia http://www.commbank.com.au/business/campaigns/federal-budget/?cid=dsm
ACT Government http://www.treasury.act.gov.au/budget/index.shtml
Australian Policy Online http://www.apo.org.au/economics