To regain trust and stability in the superannuation industry, a long term view needs to be taken.
What was lost in much of the election discussion around the removal of the refund of franking credits for individuals and superannuation funds, was the tax policy issue that is trying to be addressed.
The centrepiece of the Budget is the personal tax cuts – and it is welcome, given sluggish wage growth to see action for both lower and middle earners.
While it seems the absurdity of the outside world is on the rise I am comforted by the slow and steady march that tax takes into the future.
The biggest contributor to the $7.5 billion rebound in company tax collections from 2015-16 was the mining, energy and water sector, which contributed more than 75 percent of the additional tax.
The Australian Taxation Office is now well into its program of compliance reviews of the country’s top 1,100 companies checking they have the right systems in place to ensure they are paying appropriate levels of tax.
The OECD’s recent Tax Policy Reforms 2018 – which covers latest tax trends among 35 countries – shows that several member countries have lowered taxes on businesses and individuals as part of their 2018 tax reforms.
A parliamentary committee has recommended that the Commonwealth Government should undertake a review before 2022 for the purpose of identifying how Australia’s tax system can be simplified.
The ATO estimates that for 2014-15 the net individual income tax gap attributable to salary / wage earners and investors was $8.76 billion, or 6.4 percent.
The recent budget decision to invest $41 million in an Australian Space Agency, commencing 2018-19, is a modest first step for Australia, the last OECD country to establish a Space Agency for commercial purposes.