The Henry Review into Australia’s Future Tax System
The Australian Guild of Screen Composers invites comments from AGSC members, composers and colleagues on the Federal Government Review into Australia’s Future Tax System.
What It Is
On 13 May 2008 the Australian Government announced the review of Australia’s tax system. Known as the Henry Review, as it is chaired by the Secretary to the Treasury, Dr Ken Henry. The review will look at the current tax system and make recommendations to position Australia to deal with the demographic, social, economic and environmental challenges of the 21st century. It will encompass Australian Government and State taxes, except the GST, and interactions with the transfer system. (Please see the Objectives and Scope of the Review below.). Further information and submissions received to date can be found at www.taxreview.treasury.gov.au
Why This Matters to Composers
This will be the biggest review and potential overhaul of the tax system in the past 25 years, and this is the opportunity to put your views forward based on your experiences and knowledge. For example, many composers operate as small businesses and have irregular income, and so you may have views on income averaging (where your income is averaged out over a number of years so reducing your tax).
How You Can Take Part
The AGSC will be putting in a submission, and you can take part in two ways:
¬ Emailing the AGSC with your views and experiences. It can be 2 lines, 2 paragraphs or 2 pages.
¬ Becoming a member of the AGSC Henry Review panel, which will allow you to have greater input and receive regular updates on the AGSC submission, as well as be advised of comments and suggestions by composers.
Important Dates
Comments to the AGSC due 1 April, 2009
The AGSC submission to Treasury due 1 May, 2009.
Please email comments to agsc@cia.com.au
Public Meetings
The Govt is also hosting public meetings around Australia next month and these include:
Sydney - Wednesday. 18 March 2009 Mercure Sydney - 818-820 George Street, Sydney
Melbourne - Monday, 23 March 2009 Jasper Hotel - 489 Elizabeth Street, Melbourne
For a full list of dates and venues, and if you wish to attend any of these meetings go to:
http://taxreview.treasury.gov.au/content/Content.aspx?doc=html/public_consultation.htm
The Henry Review into Australia’s Future Tax System
Terms of reference
Objectives and scope:
1. The tax system serves an important role in funding the quality public services that benefit individual members of the community as well as the economy more broadly. Through its design it can have an important impact on the growth rate and allocation of resources in the economy.
2. Raising revenue should be done so as to do least harm to economic efficiency, provide equity (horizontal, vertical and inter-generational), and minimise complexity for taxpayers and the community.
3. The comprehensive review of Australia’s tax system will examine and make recommendations to create a tax structure that will position Australia to deal with the demographic, social, economic and environmental challenges of the 21st century and enhance Australia’s economic and social outcomes. The review will consider:
3.1. The appropriate balance between taxation of the returns from work, investment and savings, consumption (excluding the GST) and the role to be played by environmental taxes;
3.2. Improvements to the tax and transfer payment system for individuals and working families, including those for retirees;
3.3. Enhancing the taxation of savings, assets and investments, including the role and structure of company taxation;
3.4. Enhancing the taxation arrangements on consumption (including excise taxes), property (including housing), and other forms of taxation collected primarily by the States;
3.5. Simplifying the tax system, including consideration of appropriate administrative arrangements across the Australian Federation; and
3.6. The interrelationships between these systems as well as the proposed emissions trading system (ETS).
4. The review should make coherent recommendations to enhance overall economic, social and environmental wellbeing, with a particular focus on ensuring there are appropriate incentives for:
4.1. workforce participation and skill formation;
4.2. individuals to save and provide for their future, including access to affordable housing;
4.3. investment and the promotion of efficient resource allocation to enhance productivity and international competitiveness; and
4.4. reducing tax system complexity and compliance costs.
5. The review will reflect the government’s policy not to increase the rate or broaden the base of the goods and services tax (GST); preserve tax-free superannuation payments for the over 60s; and the announced aspirational personal income tax goals;
6. The review’s recommendations should not presume a smaller general government sector and should be consistent with the Government’s tax to GDP commitments;
7. The review should take into account the relationships of the tax system with the transfer payments system and other social support payments, rules and concessions, with a view to improving incentives to work, reducing complexity and maintaining cohesion;
8. The review should take into account recent international trends to lower headline rates of tax and apply them across a broader base, as well as domestic and global economic and social developments and their impact on the Australian economy.
9. The review will also incorporate consideration of all relevant tax expenditures.