Tax System Improvement

Tax System Improvement

A new small business entity

The 2015 Re:think paper discussed the virtues of a US ‘S-Corp’ type entity for SMEs in Australia. CPA Australia is of the view that it would be appropriate for a new type of entity be introduced into our tax regime that would have some of the features similar to that of a S-Corp, such as limited liability and streaming/ flow through of income to beneficiaries, but importantly it would also need the additional feature ...more »

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Tax System Improvement

Tax Reform, and tax mix

The Tax White Paper process may be ended, but the structural tax problems remain.

We encourage governments to pursue structural tax reform - particularly focusing on our outdated tax mix and the problems articulated in the Re:think paper re aging population, our over-reliance on income taxes and under-reliance on taxes on consumption.

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Tax System Improvement

Encouraging savings and investment

Australia's current tax system penalises taxpayers on income derived from savings outside the superannuation system. Given the tax-preferred status of superannuation, it has become the preferred savings vehicle for most Australians. This is beneficial for retirement savings, but does little to recognise the necessity for individuals to save income outside of super to afford major capital purchases during their working ...more »

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Tax System Improvement

Superannuation and income tax - moving to an EET model

Superannuation is the primary retirement savings vehicle for the majority of Australians, so it is appropriate that tax concessions are used as a policy lever to provide an incentive, encourage desired behaviour and compensate individuals for locking their savings away in the superannuation system. However, there has been considerable public debate in recent times about the quantum, distribution and equity of the tax ...more »

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Tax System Improvement

An internationally competitive company tax rate

As part of the now defunct Re:think/ Tax White Paper process there was at least one paper showing that reducing the tax burden on businesses lifts productivity, and increases both business' competitiveness and their capacity to grow. Importantly it also creates jobs. Further, the tax incidence of higher company taxes falls on workers as lower wages, less jobs - or even both. For these reasons we support a lower corporate ...more »

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