Market/Finance News Blog: Tax reform firmly on the agenda

By the resi financial blog team, 31 March 2015

Market/Finance News Blog: Tax reform firmly on the agenda

Investing in property often needs a pretty big financial outlay, and one of the costs that comes on top of this is taxes. They are a bit of a necessary evil of the property investment game in lots of ways, ranging from the levy you pay on your mortgage, to purchasing a home and even selling it again. Fortunately, the federal government has sparked off discussion about what role the country's tax framework will play in the Australian economy over the coming decades. 

Treasurer Joe Hockey announced the release of the Tax Discussion Paper on March 30, which looks to be the first step in the government's journey towards tax reform. It comes off the back of the government's Intergenerational Report for 2015, which laid out some of the most significant challenges the country would likely face over the next 40 or so years. 

First and foremost on the agenda, Mr Hockey said the paper would try to stimulate a solution for creating a tax system that supports economic development, as well as living standards and drives Australia's competitiveness on a global scale. He noted that the country has become too reliant on income tax as a method of revenue, but with demographics and the population ever-changing, the time has come to reinvigorate talks about a more sustainable system.

"The Intergenerational Report highlights the need for a tax system that can support a growing and ageing population while there is a decline in the number of traditional working age Australians to fund services," Mr Hockey said in a March 30 release.

The changing nature of the global economy has put an especially large strain on the tax system. Mr Hockey said the discussion paper is a great opportunity for Australians to get involved in the tax reform process and develop a system that better suits the country's needs both now, and into the future. 

For advice on how taxes can affect your ability to buy a home, get in touch with a loan specialist at resi. They can take your financial situation into account and help you find a great range of home loan options

Categories: Home Loans