Dynamic Business

Rob Oakeshott’s crusade for tax reform with Prime Minister Julia Gillard has been welcomed by the Taxation Institute of Australia as the Institute congratulated Prime Minister Julia Gillard on her election win.

The country’s leading professional association in tax says it awaits the details of a proposed revisiting of the Henry Report recommendations, revealed by independent MP Rob Oakeshott.

Taxation Institute President David Williams says his organisation is quietly optimistic that the promise of renewed consultation means the returned Government and aligned independents are serious about tax reform.

“We’ve been of the opinion that tax reform should be close to the top of any list of national priorities and we support a process that is more transparent,” Mr Williams said.

“It’s time to move beyond sound-bites and rhetoric to implement changes that make the tax system simpler, more equitable and fairer.

“Equally importantly, we need clarity about which elements of tax reform that were shelved during the election campaign are now back on the table.”

Mr Williams said the tax reform debate had to move beyond taxation levels for individuals, businesses and the resources sector and focus on structural reform.

“For example, the legislation governing taxation of trusts is more than 50-years-old.

“We need 21^st Century law that takes into account changes that have occurred in the interim such as the introduction of a capital gains tax regime.

“The taxation of trusts affects small business. It also affects constituents in every electorate in Australia.

“The Henry Review made recommendations on this which need to be implemented.”

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