Why is the Australian Tax System Unique?
As per the Australian Institue of Chartered Accountants magazine for April 2010:
- Australia has one of the most complex tax systems in the world
- There are roughly 5,700 pages of income tax legislation in Australia
- Australians currently pay 125 taxes; of these, 10 taxes collect 90% of the revenue
- The number of taxes rise to 259 when you consider that states have different taxes
- 73% of Australians use a tax agent
- Australia’s corporate tax rate is higher than the OECD average
- Australia collects more investment tax than any other OECD nation
- The Henry review (a proposal for a new tax system) includes 1,500 submissions, 4,700 letters, 10 town hall meetings and 1 policy conference. The reports is said to be 1,000 pages long!
Please note that although the review has been submitted to the treasurer there are no changes in the legislation at this point. The government will most likely conduct various mini reviews of their own before making changes to the legislation but potential changes are food for thought especially if you intend to embark on a long term venture.