Publication date: 03 May 18 |
Source: THE TAX INSTITUTE
SYDNEY, 3 May 2018: The focus on a company tax rate reduction is only a small part of reforming our tax system. More comprehensive reform is necessary.
“There are a number of possibilities which could be adopted to promote a more efficient and simpler tax system” says Professor Robert Deutsch, Senior Tax Counsel at The Tax Institute.
Three key measures that The Tax Institute is regularly advocating for reform of the tax system are:
- Standardising tax rates and brackets such that the rates might be:
0 – 20,000 nil
20,001 – 80,000 25%
80,001 – 180,000 35%
180,001 + 45%
- Abolishing the Fringe Benefits Tax, Medicare levy, and surcharge, and simply making them part of the overall income tax that is currently collected from taxpayers.
- Expanding the scope of GST by eliminating the GST free categories for basic food, health and education with up to half the tax saved being used to compensate lower paid income earners and pensioners for the additional cost of living.
“These measures will have major impacts, both negative and positive, but would reduce complexity in the tax system, without compromising equity between taxpayers”, says Professor Deutsch.
For more information:
Stephanie Conway, Media Relations Contact: 02 8223 0011
About The Tax Institute
The Tax Institute is Australia’s leading professional association and educator in tax. Its 12,000 members include tax agents, accountants and lawyers as well as tax practitioners in corporations, government and academia. The Tax Institute supports the tax profession through education and professional development and works to continually improve tax law and its administration.