On 7 December 2014, the Government released the final report of the Financial System Inquiry.
The report makes 44 recommendations to serve as a blueprint for the financial system over the next decade. The recommendations focus on two general themes: funding Australia’s economy and boosting competition; and five specific areas: resilience; superannuation and retirement incomes; innovation; consumer outcomes and the regulatory system.
The Inquiry has made a number of observations on tax issues (see Appendix 2). They relate to the following:
- Differentiated tax treatment of savings from bank deposits and fixed-income securities
- Negative gearing and CGT concessions on assets held longer than a year
- Dividend imputation - should it be retained?
- Interest withholding tax (IWT)
- The Research and Development (R&D) Tax Incentive
- Tax treatment of Venture Capital Limited Partnerships (VCLPs)
- Tax treatment of funds management vehicles
- Tax treatment of superannuation: Tax concessions
- Tax treatment of superannuation: Differentiated tax rates on earnings
- Tax treatment of legacy products
- Duties on insurance
- Tax treatment of non-operating holding companies (NOHCs)
- Goods and services tax (GST) on financial services
Treasury says that these issues will be considered under the Tax White Paper process, and submissions on them should be directed to that process, with further details to be announced shortly.
The closing date for submissions on other matters is Tuesday 31 March 2015.