Taking the pulse on tax reform

Taking the pulse on tax reformA new Fairfax Ipsos poll confirms fairness is the key when it comes to community support for tax reform, mirroring findings of previous Property Council research.More than half of all Australians (52 per cent) expressed support for an increase in the GST if it was accompanied by other tax cuts and compensation for lower income households, according to the poll published by Fairfax on Tuesday.Public support for the concept of trading off a higher rate of GST against changes to the tax system that improve fairness is consistent with the findings of a larger survey commissioned by the Property Council mid-year.That survey found two-thirds of Australians (65 per cent) consider the GST to be fair, and a similar percentage agree it is better than other taxes because it is simple and can’t be dodged.On the opposite end of the spectrum, even more people (78 per cent) believe stamp duty is unfair, and worse than other taxes.Interestingly, the prospect of an increase in the rate of GST is considered by the community as largely inevitable, with only two per cent of all people surveyed believing it wouldn’t rise in the next decade.While Treasurer Scott Morrison has now confirmed that the official next step in the tax reform process, the release of a green paper, will be held over until next year, debate about the shape of any reform package is expected to resume as federal parliament reconvenes next week for the final sitting period before the summer break.”Well there is a Budget in May, we will be putting a Green Paper out on these and other related issues next year, because remembering that this is a package about how you grow the economy – not just how you might seek to change the tax system.,” the Treasurer said.The Prime Minister has also signaled that tax policy will feature in his talks with state and territory leaders at the upcoming Council of Australian Governments meeting in December.Property Council chief executive Ken Morrison said there were clear synergies between taxes that the community considered fair and those that were also economically efficient. “People very clearly see stamp duty as Australia’s least fair tax and GST as the most fair,” Morrison said.”They recognise that stamp duty is also highly inefficient and holds back the economy.”Considering changes to the GST, as part of a broader reform package that addresses our worst and most inefficient taxes like stamp duty, opens the door to an outcome that would put Australia on a very strong growth path.”Most importantly, Australians accept the need for change, provided the government develops the right reform package. “The most compelling finding from our audit of community attitudes earlier this year was that virtually all Australians (92 per cent) believe it is important that the tax system is reformed,” Morrison concluded.