“In terms of the levers over which Jim Chalmers has some control, the tax system can be readily adjusted to stimulate growth, increase efficiency and lower the compliance costs borne by taxpayers and the tax office,” Shaun writes. “An easy place to start is the long list of previously announced but unenacted tax measures.”
Offering advice from a tax lawyer’s perspective, Shaun suggests where the government might start:
- Reforms to corporate and individual residency tests, where cost and uncertainty has become a major issue for companies and individual taxpayers.
- The application of so-called non-arm’s length income and expense rules, which have the potential to trigger billion-dollar tax liabilities that would ultimately be borne by ordinary members of large superannuation funds.
- Enacting a patent box regime to encourage R&D investors back to Australia, particularly in the fields of medical and biotech technologies, as well as agricultural and low emissions technologies.
- Taxation of the digital economy and its intersection with traditional parts of the Australian economy, which remains largely unclear and untested.
“As long as industry is appropriately consulted, all of the above actions can be taken without the time and expense of yet another review into the tax system.”
To read Shaun’s full article, click here.