Unemployment hits record low, but less people looking for work
While the unemployment figure dropped to 3.9 per cent, only 4,000 new jobs were created and 7,000 people gave up...READ MORE
With the federal budget fast approaching, Pitcher Partners has said the focus for the government must involve kick starting a proper tax reform process.
Howard Badger, a Sydney-based tax consulting partner for Pitcher Partners, noted that regardless of whether the federal budget is delivered in the first or second week of May, the key for government is to properly address tax reform.
“Frankly, it’s at the point where we really just need certainty on tax reform, and we need to address the Australian economy’s growing revenue gap,” said Mr Badger.
“No one is properly contemplating tax reform for fear of the election, and that’s a terrible situation for the Australian economy," he added.
According to Mr Badger, neither the government nor the opposition has a clear, defined position on tax reform.
“We’ve seen the government pull back on GST reform already this year, which is a shame because a broad-based indirect tax can collect revenue from people who would otherwise not be taxed, such as tourists, and is more effective than income tax in tackling the digital economy than some of the measures proposed,” he said.
“Australia needs to look at its position in the global economy and think about what tax structure results in our economy remain competitive," Mr Badger added.
“Failing to address both the level of government spending and the taxation system will put us at a significant disadvantage into the future.”