Too many issues left off Tax Forum agenda: Experts

Tax experts have warned the Government’s planned tax summit might disappoint, saying too many key issues are off the agenda and two days won’t be enough to properly explore ways to simplify Australia’s complicated tax system.

Dr Niv Tadmore, partner at Clayton Utz in Melbourne, says the issue merits a week of discussions, rather than two days, and is disappointed the goods and services tax (GST) and carbon tax are not on the list of topics to be discussed.

Treasurer Wayne Swan announced yesterday plans for a tax forum on October 4 and 5, inviting 150 guests from business, unions, governments, academia, the tax sector and community groups.

While details are limited – the Government says it will release a discussion paper mid-year – it has ruled out an increase to the goods and services tax.

That’s not good enough, say industry experts.

“GST has to be on the agenda, but everybody knows it’s a political hot potato,” Tadmore says.

Taxation Institute tax counsel Deepti Paton agreed everything needs to be on the table, including the GST and carbon tax, and was disappointed the Government hadn’t followed its calls for working groups to be established beforehand to discuss issues, to then present outcomes at the wider summit.

And while the Government has copped criticisms for extending the date of the summit from mid-year until October, Paton says the delay is not the end of the world, adding: “It’s more important to have a thorough discussion than a quick one.”

Holding the forum later in the year will not only allow people more time to prepare, Tadmore says, but give the Government more time to advance its contentious mining tax and carbon tax plans.

Swan’s announcement is short on detail about what the Government wants to focus on during the summit, with Swan telling reporters yesterday participants will be given “free reign” to examine whatever tax matters they want – other than an increase to the GST.

Tadmore’s wish-list for the summit includes looking at ways to reduce the system’s complexity and increasing its efficiency, a study of company and individual tax rates, greater checks and balances for the Tax Office, and clarifying how tax issues can come onto the agenda.

Paton is keen for a look at “poorly designed” state taxes and the relationship between the Federal and state tax systems.

SME lobby groups are also likely to push for payroll tax to be thoroughly discussed at the summit.