28 January 2015
Business ready for tax reform
It's a political hot potato but Australian businesses are open to changes to the GST.
That's the findings of a new survey, although any increase or broadening of the consumption tax must be tied to the abolition of state taxes, such as stamp duty and payroll tax.
There is also a clear message in the 2015 Tax Reform Survey by accountancy firm BDO: just get on with it.
"Over 90 per cent of respondents agreed or strongly agreed that there has been too much talk and not enough action on genuine tax reform," BDO national tax director Lance Cunningham said.
The Abbott government's timetable for its tax reform white paper suggests there is unlikely to be any material reform until 2017 at the earliest, assuming it wins the 2016 election.
Two-thirds of respondents agreed that all GST exemptions - such as on fresh food, education and health - should be abolished to help simplify the tax system.
Almost as many disagreed that the GST should never exceed 10 per cent.
Half of respondents, largely from the business community, supported the 1.5 per cent cut in the corporate tax rate that is pencilled in for July 1, 2015.
However, more than 70 per cent disagreed with the 1.5 per cent levy that will be imposed for the government's controversial paid parental leave scheme.
Mr Cunningham said any changes needed to make the tax system simpler.
"If reforms bring with them a complex compliance regime, the negatives may end up cancelling out the positives," he said.