Australian Tax Forum Discussion Paper Released

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

03 August 2011

The Australian government has released a discussion paper to inform public debate on priorities and directions for continuing tax reform in the lead-up to the proposed Tax Forum being held in October.

It says that the Tax Forum will help identify further reforms to make the most of the opportunities and challenges ahead for Australia, such as the shift in global economic weight from West to East, the ageing of the population and the transition to a clean-energy future.

The discussion paper outlines a range of ideas that were raised in the Australia’s Future Tax System Review and are likely to be debated at the Tax Forum. It includes a section on each of the six sessions that will be held at the forum: personal tax; transfer payments; business tax; state taxes; environmental and social taxes; and tax system governance.

It also emphasizes the government’s commitment to fiscal discipline, and the need for proposals that cut tax to identify how they will be funded.

An initial invitation list for the forum has been released, which sets out participants and observers who have been selected, and also explains how others will be chosen. 48 participants and 21 observers have been selected for direct invitation. 56 participants and five observers will be chosen by the leaders of organizations named in the list. A further 52 participants and 20 observers will be selected through an expression of interest process.

Individuals can apply for selection as a participant or an observer through this expression of interest process through an online application process which closes on August 12.

Following the discussion paper’s release the Australian Tax Institute called for clarity around goals and more detail about the format of the Tax Forum.

Senior Tax Counsel Robert Jeremenko said the Institute was pleased to see the forum would be broken down into sessions around key areas of the taxation system. “Tax reform is too important to be rushed over a two-day discussion,” he said, adding:

“The Tax Institute has long called for a measured and structured approach to tax reform. It is important to ensure a timeline for reform and a process for taking the debate forward beyond the October forum."

“What’s missing in the government’s discussion paper is detail about the format of the forum and the ultimate objectives of the whole exercise.”

“How are 150 different people with at least 300 different points of view on varying aspects of the tax system going to produce a strategic tax reform roadmap for the future?”

“The discussion paper is a blueprint of some of the key issues already widely canvassed in the Henry Tax Review, which was billed as a ‘once in a generation opportunity for reform’.”

“The biggest fear for tax professionals is that once the two days of discussions are over, the only tangible output will be a warm glow and a communiqué calling for more discussion.”

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