logo
spacer
spacer

 eWombat Search 
>
spacer spacer spacer
Latest Accounting News
Hot Issues
Global outlook summary: Down but not out
Bookkeepers remind on incoming TPRS obligations
Golden Rules for Deductions
How's Australia going - vital statistics?
Tax, SMEs set to be ‘political football’ in 2019 as election nears
Cap lifted on popular financing option for clients
Expiry of 900,000 interest-only loans set for January
Australian Taxation Office (ATO) Scam Alert: Fake Demands for Tax Payments
Tax Office sounds alarm on popular property strategy
Our Advent calendar for 2018
‘Please do not panic’: ATO boss addresses STP concerns
Stop!! Don't do a paper Budget, use our online budgeting tools instead.
Employee Christmas Parties and Gifts – Any FBT?
Behavioural Coaching and your financial plans
FBT – Christmas Parties and Taxi Fares
Information needed to be the BBQ expert.
Tax consequences of trust vesting
Fringe Benefits Tax (FBT): employees’ private use of vehicles
ATO to contact clients over bank details
ATO claws back $850m in unpaid SG in FY 17-18
Appetite for property in SMSFs shows signs of life despite tough market
Superannuation gender gap narrowing, research shows
Identification numbers for directors
How financial advice helps create wealth.
Australia's vital statistics
Unlocking equity crowdfunding in Australia
$20m boost for SME clients looking to exporting
Work-Related Expenses
Articles archive
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Meaningful tax reform in high demand

Comprehensive tax reform continues to dominate wish lists for the upcoming federal budget, with support for change to state-based taxes particularly high, according to a new survey.



       


 


Mid-tier firm BDO’s annual tax reform survey of over 250 clients found that 94 per cent agreed that the government should recommence a broad reform process, with more than three-quarters supporting the establishment of a tax reform commission.


The top tax measures respondents believes were in most need of tax reform included states taxes (59 per cent), GST (37 per cent), and personal tax (29 per cent). 


“The message for the government is that taxpayers are still waiting for meaningful tax reform,” said BDO national tax director, Lance Cunningham.


“This can only begin with a renewed commitment to a holistic review of the tax system that examines the whole system and not the introduction of a number of piecemeal changes.”


The survey also revealed that 90 per cent of respondents believed that state payroll taxes should be abolished or reduced as they discouraged employment and were a disincentive to growing business, a position challenged by Treasury’s research earlier this month.


Likewise, 70 per cent support an increase in the GST rate and broadening of the GST base to allow for reform to state taxes, although Mr Cunningham concedes that it is typically thrown in the “too hard basket” of tax reform.


Fringe benefits tax continue to make the case for reform, with 75 per cent of those surveyed calling for it to be abolished or replaced with a simplified system of taxing the employees but only on truly remuneration benefits and not on benefits that are incidental or ancillary to their employment duties.


BDO has been actively throwing its support behind reform, with Mr Cunningham noting how the process has “floundered” in recent years.


“BDO fully supports Ken Henry’s call for a return to the Tax Reform process that has floundered in recent years,” Mr Cunningham told Accountants Daily last month.


“The so called ‘root and branch’ tax reform process, that was ignited by Ken Henry’s 2010 Australia’s future tax system report, gave a detailed framework for such a holistic tax reform. However, the tax reform process has turned into a smouldering heap with all sides of politics just picking on single issues instead of looking the bigger picture.


“While the current concentration on company tax rate reductions is justifiable to ensure Australia’s competitiveness in international capital markets, it should not be seen as tax reform.”


 



By: Jotham Lian and Lance Cunningham, BDO Australia
​27 APRIL 2018
www.accountantsdaily.com.au




9th-May-2018