David Linke on Re:think Tax Discussion paper
David Linke on Re:think Tax Discussion paper
Historically, significant tax reform in Australia occurs every 10-12 years. On 30 March 2015, the Federal Government released a tax discussion paper Re:think, Better tax, better Australia which formally starts the process for developing the White Paper for Reform of Australia’s Tax System.
In this video, David Linke, KPMG Australia’s National Managing Partner of Tax, discusses why tax reform is more difficult now than in previous eras.
Key areas of tax reform
- Corporate tax – Australia has a high company tax rate compared to the OECD average
- Imputation – lowers the cost of domestic capital, but it does not have that effect on foreign capital
- Individual taxation – bracket creep is expected to move the average individual rate higher in the next from 23 percent to 28 percent in 10 years’ time, increasing the burden on individual tax payers
- Goods and Services Tax (GST) – the government requires agreement from all the states and territories to make any changes to the rate and base of GST.
