With the government’s October tax forum fast approaching, industry body, the Australian Bankers Association (ABA) has called for increased tax cuts for parents and the simplification of complex taxes at both a State and Federal level.
Help and Tax Cuts for Parents
In the ABA’s eyes, the biggest concerns everyday Australians are currently faced with is the cost of childcare and whether they should return to the workforce after having a child. The banking industry supports changes to the tax system which will make it easier for people with children to work.
Also, according to the ABA “State tax arrangements are out of line with international norms.” The ABA believes, the States should consider simplifying those taxes which hinder productivity and slowly move away the current heavy reliance on stamp duty and insurance.
At a Federal level, the ABA explains there is also much that can be done to simplify national taxes. Currently of the approximately 125 taxes, 10 generate 90% of Australia’s total tax revenue – a startling figure which further raises questions about productivity in such uncertain economic times.
The Government tax forum in October will be attended by 230 participants. Federal, State and Local Councils will be represented along with business, unions, academia and tax experts. While there is much to be debated across the two day forum, it appears that tax reform and tax simplification will be hot topics.
As for more contentious issues such as increasing the GST, it seems unlikely that in the near future we will see any major reform to the current GST system. Treasurer Wayne Swann has already ruled out any such discussions at the upcoming tax forum.
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