Rudd Looks For Lower Australian Taxes

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

30 April 2010

During a recent speech to the New South Wales Business Chamber in Sydney, Australia’s Prime Minister, Kevin Rudd, confirmed that, while the government has committed to saving the future revenue improvement associated with a stronger economy, it also wants to ensure that the level of taxation remains lower on average than the level it inherited in 2007-08.

He stated that the purpose behind the government’s response to the Henry tax review would be “to build a stronger, simpler and fairer tax system.” He pointed out that “incremental reforms of the past half century have left a legacy of complexity; a system that can be unfair; and a system that unnecessarily impedes economic growth.”

He said that, over the last two years, the government has already made significant reforms to the tax system, including lower taxes for individuals, support to working families through the 50% education tax rebate, low-tax First Home Saver Accounts, and reducing the withholding tax rate on distributions of income by Australian managed funds.

The government’s objective in reforming Australia’s tax system after the tax review, Rudd informed, would be to create a strong tax system which would raise revenue in the most efficient and simplest way possible. His thought was that many of the country’s existing taxes reduce productivity and detract from the overall efficiency of the system.

He said that he wants Australia “to remain an attractive place to invest and do business. For that reason the government’s aspiration is to reduce the level of tax faced by the vast majority of Australian businesses.”

“The government,” he added, ”will continue to ensure that Australia’s tax system remains fair – particularly for small business and working families and seniors.” It will also simplify the system to ensure that individuals and businesses have to spend less time complying with their tax obligations.

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