The Assistant Treasurer on Fri 7.9.2012, delivered a speech on the Government’s tax reform agenda and the role of consultation. The Assistant Treasurer also released 2 Board of Taxation reports on the Post-Implementation Review of the Tax Design Review Panel’s Recommendations and the Review of the Tax Issues Entry System.
Key points made by the Assistant Treasurer include:
- Tax design process – The Board of Taxation’s post-implementation review of the tax design review panel recommendations found that while there had been improvements in the tax design process since 2008, more can be done to strengthen the tax design process. Mr Bradbury said the Government has accepted the Board’s recommendation that the level of interaction between the Government and stakeholders be determined in a systematic way that reflects the nature of the proposal, the respective positions of the parties, and the knowledge each possess about the proposal and its consequences. [FJM comment: There’s not much evidence of consultation being consistently undertaken before announcing measures.]
- Consultation before decisions are taken – The Board of Taxation also recommended that the Government generally consult on tax changes at the initial policy design stage. However, using the Business Tax Working Group’s early consultation on cutting the company tax rate, Mr Bradbury said “this type of consultation won’t always be possible – particularly in the Budget context where decisions are taken confidentially”. [FJM comment: The Government accepted one of the Panel’s key recommendations, which was that consultation can be undertaken confidentially on a paid basis prior to taking policy decisions – so its disappointing to see the collective amnesia now.]
- Tax Issues Entry System – The Board recommended that responsibility for the TIES website be allocated solely to Treasury, but Mr Bradbury said he had asked Treasury and the ATO to continue to maintain TIES, “as in the Government’s view the benefits of moving the website would not outweigh the costs.” [FJM comment: There continues to be a significant issue about how big a ‘policy’ change is eligible for listing on this register. The Panel fought for there being no limit on how big a policy change was suggested for initial registration at least.]
- Announced but unlegislated measures – Mr Bradbury said the Government shares the concerns raised by the Joint Professional Bodies about the number of announced but unlegislated measures and how this is contributing to taxpayer uncertainty. The Assistant Treasurer said he will meet with representatives of the Joint Professional Bodies, twice yearly, to gauge the collective views of stakeholders. Mr Bradbury said he wanted to “discuss the opportunities for increasing the use of information technology to enhance and where possible streamline the consultation process”. The first meeting is to occur later this year. [FJM comment: When the current Government were in opposition, they pilloried the then Government for a list of some 50 announced but un-legislated measures. I suspect the current Government has now slipped to a performance just as bad.]
- The Board of Taxation reports are on the Board’s website.
Source: Assistant Treasurer’s speech to the Tax Institute Qld Corporate Tax Retreat, 7 September 2012; Assistant Treasurer’s media release No 097, 7 September 2012
[LTN 174, 7/9]