In search of outcomes, outcomes, outcomes at the Tax Forum: Heffernan

It is said that the saddest two words in the English language are: “What party?”

But that’s not the case for the Coalition, which is noticeably absent from the tax forum, unlike political and business heavy hitters who have braved the Canberra cold for two days of tax talk.

The Opposition doesn’t seem to be crying about it, mind you, with leader Tony Abbott describing the event formerly known as the Tax Summit as a “pointless talkfest”.

So are Abbott and company missing much? Yes and no.

Complaints about the tax forum are well known: it’s not long enough, the GST won’t be touched, the Federal Government has plenty to get through with the Henry review, every idea needs to be revenue neutral, the states are unlikely to give way without recompense, the Feds don’t have the juice to deliver – and the way polls are going the future Prime Minister isn’t even attending.

Throw in pictures of politicians yawning through sessions, former Treasury secretary Ken Henry’s commentary on the reflexive debate between business groups and unions on the benefits of cutting the corporate tax rate and you’ve got some bad press for what should be a good news story. But in the pollies’ defence, the session on business tax went for two-and-a-half hours.

Even so, the feeling in Canberra on the first day for policy wonks and bean counters was along the lines of “at least tax is being talked about”. And not just in sound-bites between premiers and federal politicians or on Q&A or during the argy-bargy of question time.

This is sober, rational discussion, where the participants know what they are talking about and where point scoring is not the aim of the game.

Yes, the Henry review was a comprehensive overview of the tax system and the Government hasn’t done all that much with it.

On the other hand the three session topics to come under the microscope on day one – business tax, state taxes and social and environmental taxes – were issues that come up again and again with our SME readers and day two’s focus on tax system governance and personal tax sessions will be closely followed as well.

In his concluding address Treasurer Wayne Swan said he was “delighted” by the first day’s discussions and promised to turn up “bright eyed and bushy tailed” for day two.

Speaking to participants I gather what would help the forum function more effectively is an agreement at the end of each session – a framework for action.

Yes, times are tough and some changes will take years, but with so many tax experts and power brokers present and goodwill in the air, the forum is at the very least an opportunity to help prepare for the challenges of the ageing population and the resources boom. 

Independent MP Rob Oakeshott made a passionate speech after lunch, calling for “outcomes, outcomes, outcomes.”

Hope springs eternal.