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Taxation Institute of Australia's Tax Reform Report Card

Publication date: 08 Nov 01 | Source: THE TAX INSTITUTE

This Saturday, 10 November 2001, Australians will elect a government to lead our nation through some of the most difficult challenges of our time.

Throughout campaigning, there have been numerous discussions in relation to tax reform. The Taxation Institute of Australia has formulated a brief summary including a number of the key platforms put forward by major political parties leading up to the election.



First Child Tax Refund for children born after 1 July 2001 to be available from 1 July 2002

Will not increase the rate of GST

Possible tax cuts if budget surpluses permits

Ability to split superannuation contributions between spouses

Roll back GST on electricity, gas educational books, women's sanitary products, disposable nappies

Will not increase the rate of GST

Will not expand GST to areas not affected now

Push to widen GST exemptions on books, health products, rental accomm., funerals, education services and charities

Review lower marginal tax rates and thresholds to reduce the burden on low and middle income earners

Introduce greater range of marginal tax rates on a sliding scale

Child care costs tax deductible for people in paid employment and tax rebate for home carers

Repeal GST

Apportion the burden of tax in a fair manner

Introduce CGT on the sale of luxury family homes

Inheritance tax on estates with a total value above $1 million



Reduce 15% superannuation surcharge to 10.5% over three years

Compulsory employer superannuation contributions will not be raised under a Coalition government

Quarterly contributions required (i.e. quarterly BAS returns)

Other changes to superannuation for self employed persons, low income earners and non residence departing Australia

Open an inquiry into the 15% contributions tax within the first 100 days of office

Compulsory employer superannuation contributions will not be raised

Review 15% contributions taxand 15% supersurcharge

Simplify superannuation laws and policies

Supports reviews of 15% contributions tax and 15% super surcharge

Business Measures

Expand tax breaks for venture capital sector

Enhance tax exemption for certain foreign source income of expatriates resident

Review Capital Gains Tax for departing residents (including expatriates)

Introduce a new method of calculating business activity statements for small business reducing the complexity of GST reconciliation

Ease cash flow the GST has caused for pharmacies, meat processors and small Wineries

Review entity tax if there is bipartisan support

Simplified compliance regime for charities

Tax businesses using different legal structures

Attack negative gearing

Scrap 50% discount of CGT

Prohibit creation certain family trusts

Introduce 0.1% tax on foreign exchange

Ensure personal tax rates do not exceed company tax rates

Reduce the level of claimable deductions

Ensure income share dividends are taxed at the marginal personal rate for individuals and the company tax rate for companies

Eco tax packages for carbo levies and tax incentives


Tax Administration

Introduce Inspector General of Taxation Create a GST review committee

Increase resources for policing tax avoidance focusing on large corporations and high wealth individuals - 380 full time positions

Advocate a full review of the new tax system next year

Close tax minimisation loopholes in superannuation & business

Review international 'best practice' income tax laws

Review of the taxation system