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New Tax Plan to Abolish Returns

published  First Published: 18/12/2009
Article written by: David Wheaton

Dr Henry's proposal, if accepted, would result in taxpayers receiving a one-page summary from the Australian Tax Office which would include a standard "deduction" for necessary work expenses as well as salary details.

If taxpayers were happy with the ATO's calculation, they would tick the form and lodge it via the internet - and wait for their refund.

Benefits include taxpayers not having to make the annual trek to their accountant, who as an industry is right behind the proposal.

"The average taxpayer would no longer have to wade through 200 pages of the Tax Pack every year. They would tick a box and then sit back and wait for a refund," Institute of Chartered Accountants spokesman Yasser El-Ansary said.

Dr Henry, delivered his tax plan to the Rudd Government, flagged the plan to simplify the tax system to members of high-level business.

The Treasury boss made it clear that Australia should replace a system that relies on more than 70 per cent of taxpayers using a tax agent.

The Government's hand-picked review team is close to finalising its reform blueprint after nearly two years of public consultations.

It promises to usher in the biggest changes to the tax system in decades.

Among a raft of changes, the review is expected to recommend a shake-up of superannuation and road-user charges.

Despite their significant contribution to Australia's economy, the mining giants are aware they face higher taxes. The corporate giants such as BHP Billiton and Rio Tinto are starting to circle the wagons in Canberra, and with good reason.

The review team has made it clear that it would recommend an increase in the royalties and taxes paid by the resources sector.

The 30 percent company tax rate is expected to be cut however to possibly about 25 percent.

 

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