In a recent statement, the Tax Institute said the federal government “should be applauded” for instigating a national conversation about the need for nationwide tax reform.
"We strongly support the prime minister’s call for a mature debate on the future of Australia’s tax system,” said Tax Institute president, Michael Flynn.
“On a daily basis, tax professionals interact with a complex and unwieldy tax system that is under increasing pressure to raise sufficient revenue to meet spending commitments.
“True reform can only be achieved by a national conversation on the role of all taxes in our system, including the GST.
“Australia deserves a mature tax reform debate focussing on the country’s tax mix at both the state and federal levels that is ideally free of cheap, political scaremongering.”
In a statement on its website, PwC said despite 22 years of economic growth, Australia is facing the risk of falling incomes and increasing government debt, meaning the government may not be able to service community needs.
“PwC believe there is a clear need for comprehensive tax reform – done the right way. The ‘right way' means increasing those taxes that have the least effect on investment and employment, and at the same time reducing reliance on taxes that distort incentives to work, invest and transact business. It also means addressing those factors which increase the complexity of the tax system and the cost of compliance.”
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