The federal government needs to address failings within Australia’s taxation system if it is to achieve revenue adequacy as the country faces an ageing population, an industry chief said.
Institute of Public Accountants (IPA) chief executive Andrew Conway has urged the government to progress tax reform to remove cumbersome complexity.
“There is little disagreement that Australia’s tax system is cumbersome and complex and it needs to be simplified,” Conway said.
“Our current tax system will struggle to achieve revenue adequacy as we face an ageing population.”
The IPA supports the Henry tax review’s recommendation that ‘nuisance taxes’, such as insurance levies, need to be removed and replaced with consumption taxes.
“Whilst we acknowledge the significant challenges of recalibrating the existing tax mix towards a greater degree of reliance on consumption… the task of reform will only be achievable if the case for change begins to be made now well ahead of its intended implementation timetable.”
IPA intends to engage with the federal government in the lead-up to the Federal Budget on 8 May.
