Fed: Oppn says it should get a guernsey at tax review

AAP General News (Australia)
12-21-2009
Fed: Oppn says it should get a guernsey at tax review

By Colin Brinsden, Economics Correspondent

CANBERRA, Dec 21 AAP - The federal opposition says it should be offered a copy of the
Henry Tax Review if there is to be a proper political debate on an overhaul of the nation's
tax system - the first in 50 years.

Treasury secretary and chairman of the review Ken Henry is due to hand over the review
to the government any day now, but the government has said it won't be taking up any recommendations
until early next year.

The `root and branch' review has been 18 months in the making and has been scrutinising
all three levels of government taxes - federal, state and local government.

Media speculation has been rife about what the review contains.

But whatever is in the report, opposition treasury spokesman Joe Hockey said the coalition
should be given the opportunity to see it.

"We have been asking the government to provide us with a copy of the Henry Tax Review,
otherwise the government ends up running a political agenda and not a real reform agenda,"

Mr Hockey told ABC Radio on Monday.

"They have senior public servants that have designed the report, and it's going to
be the same senior public servants that are going to write the government's response which
comes out in March or April."

This, he said, would be far too close to the election to be able to have a properly
informed debate about tax prior to the Australian ballot.

Depending which media outlet you read or listen to, the report is 500 or 1,000 pages
in size - more than enough reading material for Treasurer Wayne Swan to consider during
the parliamentary winter recess.

Among its recommendations it will scrap the need for annual tax returns, cut company
tax for non-resources firms, make the wealthier pay more, tax motorists on how far they
drive and provide incentives for people to come off welfare and work longer.

Or will it?

"As I've said on so many occasions, there will be speculation about what may or may
not be in the Henry Review," Mr Swan told reporters in Canberra on Sunday.

"We will deal with it early next year. I guess there will be an enormous amount of
speculation - much of it inaccurate - between now and then."

Mr Swan has already indicated that the review will provide a 10-year plan for tax reform,
although there will be some issues the government can deal with immediately.

The only tax not included in the review is GST.

In the past year Dr Henry has been touring the country getting feedback from the community.

In an initial Treasury report on the tax system released to the review panel late last
year, it showed there are no fewer than 125 taxes.

"It turns out that there are more taxes in Australia than there are northern hairy-nosed
wombats," Dr Henry, who is also a native wildlife carer, quipped at the time.

"Clearly taxes are not an endangered species."

Dr Henry has said he is aiming for an ambitious overhaul of what has become a complex,
"ad hoc" system, making it more equitable and simpler.

AAP cb/sb/ldj

KEYWORD: TAX

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