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Govt rethinking tax process

The Federal Government has indicated it is rethinking its tax reform process, less than two months before its proposed deadline.

The Coalition had intended to release a Green Paper, which would outline a range of possible options, followed by a White Paper detailing the Government’s position.

But Finance Minister Mathias Cormann backed away from confirming the plan, which was committed to by the former Abbott government.

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Senator Cormann was asked repeatedly whether the Government was still following that process during an interview with the ABC.

“What is important is that the people across Australia have a very clear indication from the Government before the next election what our proposed tax reform policy will be for implementation in a second term,” he said.

“What form that announcement takes, that’s going to be a matter for the Treasurer.”

The government has been meeting with state and territory leaders to discuss tax reform ahead of a proposed March deadline, examining options including an increase in the Goods and Services Tax (GST).

Senator Cormann said the government wanted to deliver tax cuts in some areas, which would mean finding efficiencies elsewhere.

“You have to find a way to pay for that. That is the conversation that we’re currently having,” he said.

The GST has been at the centre of the debate to date, with South Australian Premier Jay Weatherill facing criticism from his federal Labor colleagues after voicing conditional support for an increase.

Federal Labor leader Bill Shorten has been leading a campaign against an increase in the tax, but Mr Weatherill said a “mature debate” should be held.

– ABC

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