In his Budget reply speech last year, Opposition Leader Bill Shorten announced plans to impose a cap on the amount that can be claimed for getting tax returns done by a tax agent. Shorten said Labor would apply a cap of $3,000, claiming that 48 wealthy individuals had paid an average of $1 million to get their tax done in 2014-15, as a result of which they managed to get away with paying no tax. Labor’s policy is estimated to raise $1.8 billion over a decade.
Prime Minister Scott Morrison has written to peak accounting bodies expressing concern that the policy would affect people who are restructuring their finances due to a change in their personal circumstances. Morrison also says the proposed cap may deter people from obtaining appropriate tax advice, a view shared by Institute of Public Accountants CEO Andrew Conway. From The Australian:
