SKIP TO MAIN CONTENT

Tax review to be released on May 2

The long-awaited Henry Tax Review will be released on May 2, the federal government says.

Aussie_dollars_2710_L_aap_199071386

3 min read

Published

Updated

Source: AAP


Skip to article content

Federal Treasurer Wayne Swan will also outline the government's initial response to the review on that date.

Treasury Secretary Ken Henry handed over his 18-month review of the Australian tax system to the government just before Christmas.

Some of the recommendations contained in the review are likely to feed into the federal budget, which will be delivered on May 11.

There has been much speculation about what might be in the review, largely the result of comments made by Dr Henry as he toured the country trying to get to grips with his massive task.

News that makes sense

Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

There are 125 different federal, state and local council taxes in Australia, yet bizarrely just 10 of these bring in 90 per cent of the nation's revenue.

The review had been described as a root-and-branch examination of Australia's tax system.

There have long been calls for the Australian tax system to be simplified.

One initiative that seems likely to be accepted by the government is simpler arrangements for personal tax returns.

The ATO is already about 80 per cent towards this idea through its e-tax system - tax returns that are completed via the internet - where sections of a tax return are already completed.

Another item on the reform agenda is taxation on savings in an effort to encourage Australians to put more money away.

Finance Minister Lindsay Tanner on Thursday said the tax review "will dish up a "smorgasbord of possibilities", and nothing can be ruled in or out."

He said the only outcome the government had ruled out was a change to the GST.

"We've ruled out changes to the GST, either increasing the GST or changing its scope, but other than that and the change in the superannuation arrangements ... we have got a smorgasbord of possibilities that we're going to have to consider here," he told ABC TV on Thursday.

"People shouldn't assume that we are just going to automatically implement whatever the Henry committee tells us."

While he did not rule out changes to negative gearing, Mr Tanner was reluctant about the prospect.

"Any dramatic change in the overall investment framework could lead to a stampede of people out of property which could lead, therefore, to dramatic drops in prices, which of course you are seeing in other economies around the world," he said.

A further tax on mining has been widely speculated as one outcome of the review.

Mr Tanner said he did not think there was any connection between a possible new mining tax and Western Australian Premier Colin Barnett's reluctance to sign the new national health agreement over fears of its impact on GST revenues.


Get SBS News straight to your inbox

Sign up now for daily news from Australia and around the world. You can also subscribe to Insight's weekly newsletter for in-depth features and first-person stories.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Follow SBS News

Download our apps

Listen to our podcasts

Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS

SBS World News

Take a global view with Australia's most comprehensive world news service

Stream now

Watch the latest news videos from Australia and across the world