Peter Martin has
signaled what we might expect later this year
THE review of the nation's tax system led by the Treasury secretary, Ken Henry, is set to recommend a cut in the company tax rate to as low as 25 per cent, offset by higher taxes on capital gains and mining profits.
Elsewhere Peter Martin indicates that we could be in for
pay-as-you-drive road taxes policed by geosynchronous satellites, death duties, wealth taxes, higher capital gains and resource rent taxes, the withholding of superannuation until the age of 67, the shaving of corporate tax rates and the slashing of taxes on insurance.
The Govt has already told Henry to lay off superannuation and dividend imputation and are in no need to implement immediate reform
Henry speaks about the review as a once-in-a-generation game changer. This is partly good news for Rudd and Swan because it releases them from the obligation to act on the recommendations quickly in what will be the lead-up to an election.
However cuts to company tax should happen sooner not later
A nation's rate of company tax turns out to be pivotal to its ability to attract and retain foreign capital. The Henry review is utterly convinced of that....gains from even small cuts to a nation's corporate tax rate are so big that Australia would be doing itself a disservice by leaving its rate at an uncompetitive 30 per cent.
