New Treasurer Scott Morrison has once again confirmed that the Coalition will undertake a broad-ranging review of the tax system, including superannuation and housing tax breaks, which were previously ruled-out by Tony Abbott’s ‘captains calls’. From The AFR:
“Anything that is going to help Australian’s work, save and invest, I am open to,” the Treasurer said on Monday morning…
Mr Morrison told The Australian Financial Review on Thursday that super taxes, as well as other taxes Labor is looking at, including capital gains breaks for investors and negative gearing, should all be looked at.
On Monday, he confirmed a tax system that drove growth and productivity was the ultimate goal.
He listed bracket creep and further measures to increase the incentive to move from welfare to work.
This is great to hear. With the Abbottalypse gone, the Coalition appears to have thrown off the shackles and looks to be taking a clean slate to tax reform.
As a matter of principle, the review of the tax system must be broad-ranging and not rule anything in or out. It should also place efficiency and equity considerations front-and-centre.
The ultimate goal should be to achieve a tax system that raises an appropriate amount of revenue at the lowest economic and social cost. And a good starting point would be to revisit the Henry Tax Review’s findings, which have already done the heavy lifting.
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