Australia To Measure Its International Tax Competitiveness

by Mary Swire, Tax-News.com, Hong Kong

28 February 2006

Australian Treasurer Peter Costello has launched a new study, the outcome of which is designed to gauge the competitiveness of Australia's tax systems relative to other developed economies.

The aim of the study is to identify areas where Australia both leads and lags its international trading competitors, and it will cover taxes collected at national, state and local government levels. Personal, business, indirect, property, transaction and superannuation taxes will be included in its remit.

The study will be led by Richard Warburton, who since September 2000 has been Chairman of the Board of Taxation, a non-statutory advisory body charged with contributing a business and broader community perspective to improving the design of taxation laws, and Peter Hendy, Chief Executive of the Australian Chamber of Commerce and Industry.

Mr Warburton also holds several directorships in the private sector, and is currently chairman of oil company Caltex Australia Ltd.

Mr Hendy, ACCI chief since June 2002, has extensive public policy development experience, and holds several directorships, including at Standards Australia, the International Chamber of Commerce (Australia), the Australian Institute of International Affairs (President ACT Branch), the Australian Made Campaign Limited and the National Business Action Fund. He is also a governor of the National Institute of Labour Studies and is Chairman of the Joint Policy Committee of the Confederation of Asia-Pacific Chambers of Commerce and Industry.

The review has been welcomed by the private sector, including the Australian Industry Group.

"The tax review announced today by the Treasurer presents a new opportunity to focus our attention on areas of tax reform that can improve our international competitiveness," commented Heather Ridout, Chief Executive of the AIG.

However, Mrs Ridout went on to note that the study will not achieve anything unless the government is prepared to act upon its findings.

"We expect the review to not just identify where our tax system is leading or lagging behind. The review should bring into focus the areas of reform which will have the most impact on our international competitiveness and therefore should be given the highest priority," she stated.

Mr Warburton and Mr Hendy are due to report their findings to the Treasurer by April 3.

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