By Peter SpiveyAUSTRALIAN Tax Department chief accountant says the tax gap will widen in coming years because the economy is slowing and the Government is making some small but crucial reforms.
Peter Spiveey says Australians have to get their act together and get more out of the economy.
The chief accountant said the Government’s reforms to the tax system and the reduction of corporate tax will slow the growth of the tax bill over the coming years, making it more difficult for taxpayers to meet their obligations.
Mr Spiveys comments come after the Government announced last week it will make a major change to the way the tax burden is distributed.
It will cut the top tax rate to 28 per cent from the current 39 per cent, while increasing the child tax credit from $2,000 to $6,000.
The Government said this would allow for a “balanced” tax system that is “fiscally sustainable and sustainable for the economy”.
The announcement has been met with criticism from some quarters, including the Treasurer Scott Morrison.
Mr Spivy said that while there were some major changes in the Budget, the Budget is not an annual budget, but a year-end statement, and that the Government should focus on delivering the changes in 2018.
“I think the Budget statement itself is a really good thing,” Mr Spiveyy said.
“It gives the Government some information about what the priorities are and what they’re doing, and how we’re going to deliver on them.”
He said the Budget had some big-ticket items such as making up for the deficit, and also making up some of the money that would have been spent if there had been no changes to the income tax system.
“If you look at that, I think you can say the budget is pretty solid,” Mr Spevey said.
“It’s not like you get this one big change, you get the one-off, and then it’s gone for the year and then you’re back at square one again.”
Mr Speveys assessment of the Budget came as the Government released the latest financial details of the changes it has made to the system.
In a statement, the Government said it has taken significant steps to strengthen the financial system, cut the number of tax credits available to low-income earners and cut tax rates for some businesses.
“We are continuing to improve the transparency of the Australian Taxation Office, ensuring taxpayers have confidence that they are getting the right value for their tax dollars,” the statement said.
Topics:government-and-politics,business-economics-and.consumer-finance,corporate,tax,government-of-the-national-party,tax-policy,government,australiaFirst posted April 25, 2019 18:17:42Contact Sophie O’NeillMore stories from New South Wales