Proposed Income Tax Cuts
21 November 2017
Mark Molesworth, BDO Tax Partner said:
“Whilst we welcome the renewed attention on the tax system, we hope this doesn’t turn into a bidding war for votes using the promise of reduced tax rates as an electoral sweetener.
“Serious consideration needs to be given to reforming the tax system as a whole so that it is made more sustainable and competitive.
“The government should gut the building, rather than just put up new wallpaper.
“What Australia has lacked in the past is the political agreement to tackle holistic reform. All recent governments have cherry picked particular measures that are less successful on their own because they lack the scaffolding of a system-wide reform that their architects’ propose.
“We understand that a full tax reform process will take a number of years and much political and administrative energy. But the benefits of undertaking holistic reform (such as ease of compliance, ease of collection and increased business confidence and transactions) are likely to outweigh the short term costs.”