The draft report by the New South Wales Review of Federal Financial Relations articulates a broad overarching plan that is consistent with many previous reports. In the medium to long term CA ANZ supports ideas such as increasing the base and rate of GST and substituting stamp duty on property for land tax. In the short-term CA ANZ supports the harmonisation of payroll tax through its integration into a national, cohesive Single Touch Payroll platform and the elimination of stamp duty on insurance.
It will be difficult to achieve medium-long term tax reform that is needed to ensure the sustainability of State/Territory budgets unless difficult Constitutional issues such as who should be responsible for what and how funding should be allocated to support that responsibility are addressed. Political will, particularly at the State level, to protect the integrity of the tax system is also needed.
What is needed now is a timeline that outlines when difficult issues that have been stumbling blocks for tax reform are to be addressed.