Tonight’s Federal Budget is yet another wasted opportunity to embark on a long-term tax reform plan that is vital to ensure that the country is well positioned for the challenges of the decades ahead.
Short-term revenue considerations have resulted in the Government yet again choosing the easy path of tax grabs from business to fund excessive spending commitments
While Government efforts to protect the integrity of our tax system by closing loopholes are worthwhile, the Budget measures virtually ignore the long-term vision laid out in the Henry Tax Review.
Tonight’s measures lack any holistic tax reform plan to correct fundamental flaws and restore sustainability of tax revenues.
The measures will add significantly to the stock of announced but un-enacted measures. An outstanding agenda of more than 100 tax measures in an election year will heighten uncertainty for business in an already volatile environment.
After years of cloistered, on-the-run policy making, businesses are again left to make significant investment decisions in the dark.
Tackling base erosion and profit shifting requires more than a few integrity measures designed to bolster the current broken system.
To date, the Government’s efforts on a broader rethink of the fundamental underpinnings of our international tax system have been underwhelming.
Government delays have added to base erosion problems. Isolated measures to tackle debt dumping would have been unnecessary if the promised broader rewrite of foreign income taxation laws had been progressed as planned.
Robert Jeremenko CTA
Where to find the Budget papers and Press Releases on the net
The Budget papers are available for viewing and downloading from the internet at the following sites:
Treasury - go here
Australian Government - go here
Parliament of Australia - go here
The Press Releases from the Treasurer and Assistant Treasurer can be found here and the Prime Minister's releases can be found here.
The Tax Institute media release - here.