Earn
Will Australia ever see major tax reform?
Despite being much needed, Australia will never have a major tax reform to the scale of reforms in 2000, says the man who established the goods and services tax.
Will Australia ever see major tax reform?
Despite being much needed, Australia will never have a major tax reform to the scale of reforms in 2000, says the man who established the goods and services tax.
In a presentation at the Tax Summit, Peter Costello outlined how his government reformed the tax system, the need to modernise the current system and lessons for the tax system today.
“If you told me 20 years ago I would be standing here today with a GST with an unchanged rate and almost unchanged in base, I would have said you have two heads on you,” Mr Costello said.
He said despite the need for tax reform, getting bipartisan agreement is unlikely, with politicians having to work out alternatives to passing through changes in regulation.
Mr Costello highlighted that the GST that passed parliament was not the idea of the Liberal Party, instead it was “what we could survive the Senate with”.
“Sure, tax reform is much easier if it’s bipartisan, but a lot of tax reform in this country is not bipartisan,” Mr Costello said.
The former treasurer also explained the needs and wants of business people are not actionable without a well-thought solution to tax law.
“You have to fight for it. From time to time, I hear business people saying you have to reform the tax system. But it’s not enough to just say we should reform the taxation system and go home. If you want to reform the taxation system, you need to have a plan,” Mr Costello said.
“I often get asked will we ever see a tax reform as big as this, and here is my answer: No one will ever have to introduce the GST again, and there is nothing as big, because it affects every person on every consumer transaction everyday.”
Mr Costello also believes Australia will never have a tax reform as large as it was in 2000 because the largest reform in history has already been achieved, with future reform simply adding onto existing frameworks.
“If you were to increase the rate or change the base, it’s much simpler as you have the ABNs in place, you’ve got the registrations in place, you’ve got the training in place, you’re just fiddling with the details now,” he said.
“So nobody will ever have to do it again.”
About the author
About the author
Tax refund
Trio charged $9.4m over emissions trading tax scheme
A trio has been ordered to pay over $9.4 million for their roles in an emissions trading tax scheme. ...Read more
Tax refund
Property investors miss out on key tax benefits
With the end of the financial year fast approaching, property investors are being urged to look into depreciation or risk losing thousands. ...Read more
Tax refund
ATO reminds contractors to declare $172bn in income
The Australian Taxation Office is using new data amid concerns that over $172 billion in contractor tax income is not being declared properly. ...Read more
Tax refund
Here’s how to maximise your 2021 tax returns
Not all careers are equal in the eyes of the tax system, with workers in certain industries able to tap into a jackpot of tax perks if they stay on top of their expenses. ...Read more
Tax refund
Why it’s time for NSW to abolish stamp duty
A property interest group has argued for the end of stamp duty, urging the government to replace it with a more efficient and equitable tax system. ...Read more
Tax refund
Does Australia need an aged care tax?
The aged care royal commission has given the country a once in a generation opportunity to fix the aged care sector by increasing the tax rate, an industry expert has revealed. ...Read more
Tax refund
Expats cautioned over COVID-19 tax traps
With thousands of Australian expats either returning or planning on heading home following the COVID-19 pandemic, an accountant has urged them to look into their tax affairs to avoid a hefty tax bil...Read more
Tax refund
80¢ per hour work-from-home deduction method extended
Taxpayers continuing to work from home in the new year will be allowed to continue using the simplified working-from-home deduction method following a third extension by the ATO. ...Read more
Home values up 30% (or are they); NFTs taking the world by storm, and why Keating thinks Aussies will be ‘poor’ in retirement
Listen now
Raging floods, the tech stock bubble and the ongoing SG debate
Listen now
Meet the Manager with Trilogy’s Philip Ryan: RBA rates and property price growth
Listen now
The continued property boom, ethical investing and engaging with your super fund
Listen now
Tax refund
Trio charged $9.4m over emissions trading tax scheme
A trio has been ordered to pay over $9.4 million for their roles in an emissions trading tax scheme. ...Read more
Tax refund
Property investors miss out on key tax benefits
With the end of the financial year fast approaching, property investors are being urged to look into depreciation or risk losing thousands. ...Read more
Tax refund
ATO reminds contractors to declare $172bn in income
The Australian Taxation Office is using new data amid concerns that over $172 billion in contractor tax income is not being declared properly. ...Read more
Tax refund
Here’s how to maximise your 2021 tax returns
Not all careers are equal in the eyes of the tax system, with workers in certain industries able to tap into a jackpot of tax perks if they stay on top of their expenses. ...Read more
Tax refund
Why it’s time for NSW to abolish stamp duty
A property interest group has argued for the end of stamp duty, urging the government to replace it with a more efficient and equitable tax system. ...Read more
Tax refund
Does Australia need an aged care tax?
The aged care royal commission has given the country a once in a generation opportunity to fix the aged care sector by increasing the tax rate, an industry expert has revealed. ...Read more
Tax refund
Expats cautioned over COVID-19 tax traps
With thousands of Australian expats either returning or planning on heading home following the COVID-19 pandemic, an accountant has urged them to look into their tax affairs to avoid a hefty tax bil...Read more
Tax refund
80¢ per hour work-from-home deduction method extended
Taxpayers continuing to work from home in the new year will be allowed to continue using the simplified working-from-home deduction method following a third extension by the ATO. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
