With Malcolm Turnbull ascending to the Prime Ministership last week, he becomes the 5th Australian Prime Minister in 5 years. His appointment of Scott Morrison as Treasurer means that he becomes the 4th Australian Treasurer in 5 years.
Every Government identifies Tax Reform as a key part of their legislative agenda. So with the high rate of change amongst those most responsible for tax reform, where does this leave Australia’s tax system? Where does this leave the most recent review of the tax system; The Tax White Paper as instigated by the former Treasurer Joe Hockey last year?
Due for release next month was the Tax Reform “Green Paper”, a document that would outline the proposals for tax reform. It’s green because it’s not fully formed and is merely a statement of options. With reports that superannuation was off limits, negative gearing was off limits, capital gains tax was off limits and both mining and carbon taxes were off limits it is difficult to see how Treasury would be able to produce a document that would provide any meaningful impact or set the basis for underpinning the White Paper.
The White Paper is a statement of the goals to be pursued by the Government so it is reasonable to think that with the recent change in leadership, the Prime Minister would like the opportunity to rethink the Government’s tax position from the ground up. According to those involved in the process, they have been instructed to stop work, delaying the release of the green paper and subsequent white paper until next year.
With suggestions that his Government was abandoning tax reform, Mr Turnball said this was untrue and posted this on his Facebook page: “We have not stopped work on the tax white paper – quite the contrary, as I said earlier in the week tax reform is at the centre of our efforts to make Australia a more innovative, productive and prosperous economy,”
Take a look at the progress on Tax Reform and join in the discussion at www. http://bettertax.gov.au/
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By Peter McCarthy