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Government tables changes to remote area tax concessions

The government has said it will not be acting on the Productivity Commission’s remote area tax concessions and payments, given the recent challenges faced by regional Australia.

Government tables changes to remote area tax concessions
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  • Maja Garaca Djurdjevic
  • February 28, 2020
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The government has tabled recommendations from its commissioned report into remote area tax concessions, which if implemented would have resulted in significant disruption to existing arrangements.

“Given the challenges faced by regional Australia, including as a result of the impacts of the recent drought, bushfires and now coronavirus, the government will not be acting on the Productivity Commission’s recommendations,” said the Assistant Treasurer Michael Sukkar.

Treasurer Josh Frydenberg requested that the Productivity Commission undertake a review into remote area concessions and payments in late 2018.

In its final study, the Productivity Commission made a number of findings and recommendations relating to the zone tax offset, fringe benefits tax remote area concessions and the remote area allowance.

“Were they to be implemented, the Productivity Commission’s recommendations would result in significant disruption to existing arrangements,” said Mr Sukkar earlier this week.

“This was confirmed by the volume of submissions which the Productivity Commission received in response to its draft report, the overwhelming majority of which were not supportive of the proposed changes.”

“The most important thing we can do at this time is continue to provide certainty and confidence to those living in regional areas that the government remains fully committed to supporting the growth of our regions and their continued success into the future,” he concluded. 

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