Speaking at the PwC tax reform forum in Melbourne, Mr Hockey said the need to change Australia’s tax system is now understood and outlined the government’s principles of reform.
“First, it must promote a stronger economy, building jobs, growth and opportunity,” Mr Hockey said.
“Second, any reform must be fit for purpose in the modern economy. Third, tax changes must encourage workforce participation and ensure families control their own money.
“Fourth, generally, you should not be taxed until you have earned the income. Fifth, reform must encourage innovation and opportunity, and reward for effort. Sixth, as best as possible, the revenue raising capacity of each tier of government should be aligned to responsibilities of funding and service delivery.”
While tax reform is always a hard sell politically, Mr Hockey said Australians are now willing to embrace tax reform that is good for the economy and fair for all the community.
“There's an understanding of the need for change,” he said. “In the coming months, I'll be working with my colleagues to chart the best course — guided by the government's principles — to create a better tax system based on the best needs of Australia's rapidly changing economy.
“Our goal for taxation reform is unchanged. We want lower, simpler and fairer taxes,” Mr Hockey said.