This paper is intended to start a national conversation on tax reform and invites submissions from the public.
Australia has experienced nearly a quarter of a century of uninterrupted economic growth. As a result, Australians continue to have some of the highest living standards in the world.
Over the next few decades, the challenge for Australia is to maintain and improve standards of living through economic growth. The recent Intergenerational Report shows that continuing steps to boost productivity and encourage higher workforce participation will be critical to driving future economic growth.
Tax reform is a key part of the Government’s policy agenda to build jobs, growth and opportunity.
Last year, the Government abolished the carbon and mining taxes, which were a drag on growth. We also announced changes to the taxation arrangements for employee share schemes to provide generous incentives for new start-ups.
This year, we will deliver a package for small business to expand opportunities for Australian businesses and workers.
The Government is committed to ensuring that everyone is paying their fair share of tax. This year, we are continuing to work with the G20 on the modernisation of international tax rules to address tax avoidance by multinational companies.
But that is just the start. We want to have an open and constructive conversation with the community on how we can create a better tax system that delivers taxes that are lower, simpler, fairer.
To deliver lasting, workable reforms, the community needs to be on board and engaged in the conversation. That’s why the Government is committing to a comprehensive and inclusive process. Releasing this tax discussion paper marks the start of what we hope will be a broad conversation about the current tax system and the issues confronting it. All are encouraged to take part. This conversation will support the development of a tax system to build jobs, growth and opportunity — a better tax system to deliver taxes that are lower, simpler, fairer.
Submissions can be lodged until 1 June 2015.