eWombat Search

Latest Accounting News
Hot Issues
In case you missed it – The company tax Bill that did pass Parliament.
GST spotlight headed to smaller end of town
Superannuation Amnesty – Maybe! Maybe Not!
ATO drills in car-sharing focus this tax time
What is Bankruptcy?
Update of Australia's vital statistics
ATO speaks on risk factors, surveillance triggers for FY19
ATO’s corporate residency guidance cops backlash
ATO dispels top tax time myths to clients as clampdown rolls out
Tools for budgeting, cash flow, Super and more ….
Guidance for SMSFs on transfer balance reporting
ATO issues alert on super, tax scams
Salary sacrifice integrity
Understanding the evolution of blockchain and cryptocurrencies
Update to Australia's vital statistics
Tax Time Checklists- Individual, Company, Trust, Partnership and Super Funds
SMSFs - Our 'hardest' jobs
Tax Office reveals adventurous, dubious claims ahead of tax time
ATO reveals top tax time mistakes, set to contact 1 million taxpayers
Watch out for charges with incoming GST laws.
Super savings gap for women stuck at 30%
‘Wipe the slate clean’: Clients, accountants urged to use new amnesty period
Statistics for all Australians
Touch Payroll (STP)
‘Calm before the storm’: Government proposes 12-month SG amnesty
Government intensifies cash payments crackdown - Kelly O'Dwyer
Articles archive
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
 

Stapleton Group: 83a Boronia Road Boronia VIC 3155 | Phone: (03) 9760 7800 | Fax: (03) 9760 7860