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Tax professionals welcome the Henry Review as providing a platform for ongoing debate on the reform of Australia’s tax system

Publication date: 02 May 10 | Source: THE TAX INSTITUTE

The Taxation Institute welcomes the release of the final report of the Henry Tax Review, which contains a detailed suite of options to reform Australia's tax system over the next decade.

The Government's initial response to the review allows an ongoing, mature debate to occur on the future reforms to the tax system.

"We support the package in broad terms. The Tax Institute understands that these reforms have to be paid for," said Taxation Institute president David Williams.

"The Henry Review makes a compelling case for the introduction of a Resource Super Profits Tax,
however it's important that its implementation is efficient rather than increases complexity. We look forward to participating in the consultation process.

"The reduction of the company tax rate to 29 per cent in three years and then to 28 per cent in the following year is a welcome step in the right direction towards achieving the Henry Review's recommendation of a 25 per cent company tax rate.

"The accelerated reduction of the company tax rate for small businesses will act as a huge boost to hundreds of thousands of taxpayers.

"The instant write-off for assets worth up to $5,000 in conjunction with simplified depreciation pooling rules will also greatly assist small businesses by reducing complexity and improving cash flow.

"The Henry Review's recommendations for making tax time simpler for everyday Australians, including giving taxpayers a choice to claim a standard deduction for work related expenses and pre-filled income tax returns are great initiatives.

"We call on the Government to implement these recommendations for simplification of tax returns as a priority. As the Taxation Institute has long called for, such complexity in Australia's tax system is crying out for reform."
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Media Contacts:
Robert Jeremenko, Senior Tax Counsel - Taxation Institute of Australia on 0468 987 300
Craig Regan - Lighthouse Communications (0408) 448 527