The Australian government has missed a
once-in-a-generation opportunity for a comprehensive reform of the
tax system, according to CPA Australia.
The Henry Review into Australia’s tax system,
headed by Treasury Secretary Ken Henry, made a series of
recommendations early this year 2010.
The government released its review and
response to the recommendations on 2 May.
But CPA Australia said the response was too
narrow in its focus.
“CPA Australia would have liked to see a
broader, more comprehensive approach, with a clearer and more
immediate plan of execution to give business much needed
certainty,” CPA Australia chief executive Alex Malley said.
“What also appears to be lacking is a plan to
eliminate the inefficiencies and duplication which currently plague
the Commonwealth/state tax regime.
“Eliminating this inefficiency would be the
key to achieving maximum economic productivity and through this the
benefits would then flow on to everyone.”
A recent CPA Australia poll found that members
thought removal of duplication and inefficiencies in the
Commonwealth/state tax regime should be a priority.
Overall, 64 per cent of respondents listed
this as a key issue. It was the highest single issue in each sector
CPA Australia believes the key elements of the
government response to the Henry Review include:
- A phased increase in the
minimum contribution to superannuation; and
- Measures designed to boost
the small business sector.