As part of its submission to the Australian Government’s 2011 tax forum, the Business Council of Australia is calling for comprehensive changes to the tax system and a more efficient approach to government spending.
The submission calls on the Australian Government and parliament to embark on a 10-year reform of the tax system and government expenditure with four key actions:
- improve the efficiency and sustainability of future government expenditure
- reduce the reliance on volatile direct taxes in favour of more stable indirect taxes such as consumption tax and land tax, and abolish inefficient state taxes while identifying options to replace that revenue
- redesign the spending accountabilities and revenue raising capacities of the Commonwealth and states so the states have a more predictable share of revenue including potentially from a share of income tax
- simplify the tax system using the Henry tax review as the starting point.