Market/Finance News Blog: Tax reform on the horizon

By the resi financial blog team, 16 December 2014

Market/Finance News Blog: Tax reform on the horizon

A group of industry leaders and business representatives has formed to lobby the government for tax reform ahead of the tax review in 2015. Focusing on efficiency and competition, the group aims to effect wide-spread change that will positively affect consumers and business alike.

According to a release by the Real Estate Institute of South Australia on December 15, the aim of the Business Community for Tax Reform (BCTR) is to give voice to common concerns and to help negotiate what is likely to be an overhaul of the tax system. The members of the group represent large and small businesses alike.

"If we are to effect meaningful tax reform in Australia and encourage inclusive growth that benefits both business and the community, we need to present a case for change," said Amanda Lynch, CEO of the Real Estate Institute of Australia (REIA), which is an executive member of BCTR.

Some of the issues addressed would include negative gearing and stamp duty. According to a December 9 statement by the Housing Industry Association, the high cost of stamp duty is strangling the affordability of housing, creating ripple effects throughout the economy.

The BCTR hopes, through its conversations with the government, to effect change that will positively increase competition and other areas of day-to-day business.

"A more efficient tax system that supports economic growth, employment creation, investment and productivity will help strengthen the tax base for the future," said Ms Lynch.

"While we may not be able to agree on all elements of reform, it is clear that tax reform is needed to address the key challenges facing Australia's competitiveness, barriers to participation, employment creation and investment; complexity and reliance on inefficient taxes."

The changes ahead for business owners and everyday consumers could be big ones - be sure to keep up to date with the latest developments. If you would like to know more about how to make the most of your business or personal finances, talk to a resi loan specialist today.

Categories: Business Owners, Financial Services, Home Loans, Property Investment