Australia’s tax system ‘third most complex in the world’
A report released today by the Federal Public Accounts and Audit Committee has confirmed what most Australians already know: Australia’s tax system is too complex.
“The level of service that the Tax Office gives to tax payers is constrained by the complexity of the tax laws,” Public Accounts and Audit Committee chair Sharon Grierson said when the report was tabled in Parliament.
While the committee found that the Australian Taxation Office is a world leader in tax administration, the Federal Government and Parliament need to spend more time developing simple, coherent tax policies and legislation, Grierson said.
The report noted that complex tax laws increase the chance of taxpayer error in self-reported tax assessments such as those done by Australian taxpayers.
It found that, in 2004, Australia’s tax system was the third most complex of the 20 largest economies in the world.
The committee also argued that the Federal Government’s current tax review, Australia’s Future Tax System, would be an obvious vehicle to begin simplifying the tax system.
AUTHOR
Amy Corderoy
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.
