Tax reform response to Federal Budget

11 May 2011

The Federal Budget was tax reform 'light' but paves the way to drive fundamental change to the tax system at the national tax forum in October, according to PwC tax partner Tim Cox.

"This year's Budget was focused on building capacity for Australia's economy, in skills and infrastructure, and correcting the structural imbalances of our multi-speed economy. Given the upcoming tax forum, it is understandable the Government's focus was not on tax reform, but it must remain on the national agenda," said Mr Cox.

The 2011 Budget announcement introduced certain tax reforms on Fringe Benefits, Infrastructure and Small Businesses, taking the total number of tax reform measures to 12 since last year.

"We expect the upcoming national tax forum will provide that opportunity, to focus on the elements of tax reform that will deliver meaningful change to improve the tax system's efficiency and enhance Australia's global competitiveness."

"Effective and lasting tax reform will only be achieved through broader engagement with businesses and the community. The tax forum must adopt a holistic approach to reform, rather than cherry-pick individual measures," Mr Cox concluded.

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