In an address to the Business Council of Australia, Prime Minister Malcolm Turnbull said he is “actively working” with federal Treasurer Scott Morrison to address economic burdens on middle-income Australians.
“Our marginal tax rates are high, bracket creep is a constant challenge that needs to be addressed,” he said. “Higher taxes penalise people who are trying to get ahead.”
The accounting profession has long been calling for holistic tax reform, and for appropriate consultation with professional advisers before setting up new tax policy agenda.
BDO tax partner Mark Molesworth fears this represents another step away from consultative, constructive reform of the tax system as a whole.
“While we welcome the renewed attention on the tax system, we hope this doesn’t turn into a bidding war for votes using the promise of reduced tax rates as an electoral sweetener,” Mr Molesworth said.
“The government should gut the building, rather than just put up new wallpaper.
“What Australia has lacked in the past is the political agreement to tackle holistic reform. All recent governments have cherry-picked particular measures that are less successful on their own because they lack the scaffolding of a system-wide reform that their architects propose.
“We understand that a full tax reform process will take a number of years and much political and administrative energy. But the benefits of undertaking holistic reform, such as ease of compliance, ease of collection and increased business confidence and transactions, are likely to outweigh the short-term costs.”
The not-to-be-missed Accountants Daily Strategy Day will travel through Melbourne and Sydney in August to equip accounting professionals with the latest industry updates and tips for modern practice management as well as the latest cutting-edge technology, processes, strategies and trends shaping the future of accounting. Visit the website for more information: www.accountantsdaily.com.au/strategy-day
TRENDING
