Positioning Australia's
tax system for ...
Australia needs a fairer, simpler and more efficient tax system that supports the global competitiveness of our economy, provides incentives, minimises distortions and supports fiscal responsibility.
The future of tax
The 2020 Summit proposed that the Australian Government undertake a comprehensive review of State and Federal taxes, which will consider measures to harmonise and simplify taxes, reduce inefficient taxes, ensure a progressive system and address negative interaction with the welfare system.
The Government's review of Australia's tax system will be broad ranging and cover taxes levied by the Australian Government and the States.
A complete Australian tax review, including State taxes, has not been undertaken for over 50 years.
In the spirit of the 2020 Summit, community engagement will be an integral part of the review process.
The review will consider:
- The balance of taxes on work, investment and consumption and the role for environmental taxes
- Further improvements to the tax and transfer system facing individuals, working families and retirees
- The taxation of savings, assets and investments, including the role and structure of company taxation
- The taxation of consumption (except GST) and property and other state taxes
- Simplifying the tax system, including across the Australian Federation
- Interrelationships between these systems as well as the proposed emissions trading system.
The review will release an initial discussion paper by the end of July 2008 and will provide a final report to the Treasurer by the end of 2009.
Composition of Australian Government and State tax revenue 2006‑07