12 Nov 10 Preamble - Friday 12 November 2010This week we saw the High Court hand down its decision on Anstis regarding the deductibility of self-education expenses for youth allowance recipients. As the Treasury ‘Red Book' advice to the Government warns, this decision has significant Budget implications for the Government, as several hundred thousand Youth Allowance recipients and perhaps other income support recipients, will be entitled to claim tax deductions for expenses incurred in qualifying for their allowance payment. We now await the Tax Commissioner's Decision Impact Statement, which we hope will be finalised within weeks rather than months. Also waiting on this is the Assistant Treasurer, the Hon Bill Shorten MP, who will then decide whether legislative action is required to deal with the implications of the decision.
The tax law is riddled with inconsistencies that are a direct result of its complexity. The Government must allow the upcoming Tax Summit to embrace the opportunity for true tax reform; a message we will continue to pursue with the Government over the coming months.
Please see below for details of other activities this week.
Robert Jeremenko FTIA