Australian Government Announces International Tax Review

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

03 May 2002

In a statement released on Thursday, Australian Treasurer, Peter Costello announced measures to improve consultation and accountability with regards to tax legislation, and revealed that a long-awaited review of the country's international tax laws will be commencing soon.

Following recommendations in a report from the Board of Taxation - a government appointed body - Mr Costello announced that there would be improvements in the consultation process prior to the enactment of any new tax laws, a step which will doubtless be welcomed by Australia's reform-fatigued business community.

The Treasurer also revealed that the Treasury itself will assume responsibility for the design and construction of tax laws from July 1, 2002. Previously, this was the remit of the Australian Taxation Office.

'The transfer will bring accountability for tax policy and legislative design more directly under ministerial control,' Mr Costello explained.

It was also announced on Thursday that, in addition to the consultation and accountability changes, a review will shortly take place in order to ascertain whether the country's international tax legislation holds back the growth of Australian companies, and discourages foreign multinationals from locating headquarters there.

However, some might argue that a quick straw poll of businesses, and a look back over the list of Australian and international companies which have fled Australian shores for more sympathetic tax regimes over the last year or so would serve to tell the government all it needs to know...

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