GST increase placed on agenda
Australians should not be concerned about an increase in the Good and Services Tax, according to key accounting body CPA Australia, which has produced research suggesting it would result in the abolition of inefficient taxes and therefore boost productivity.
CPA Australia has released the findings of research conducted by KPMG Econtech examining the overall economic effect should the GST be increased by 12.5, 15 and 20 per cent respectively and how this might then fund the reduction or abolition of inefficient taxes.
It named some of those inefficient taxes as being insurance taxes, motor vehicle taxes, commercial conveyancing duty and payroll tax.
CPA Australia said the results showed that increases in the rate to 15 to 20 per cent respectively would deliver the greatest productivity growth and standard of living increases.
The research was produced by CPA Australia as part of its positioning ahead of the Government's forthcoming tax forum.
CPA Australia chief executive Alex Malley said the research highlighted the importance of reaching a broad consensus at the tax forum on the need to remove a range of inefficient taxes funded by other revenue sources.
"Our research helps demystify concerns that an increase in GST would hurt Australians," he said.
"If the forum is to set us on the path to significant tax reform, we must look at how we can eliminate many of the inefficient taxes Australian businesses face, and this includes a serious discussion on the GST," Malley said.
AUTHOR
Mike Taylor
Recommended for you
The corporate regulator has cancelled the AFSL of a Queensland-based financial services provider, having held the licence since mid-2016.
The financial advice industry has reacted to the appointment of Dr Daniel Mulino as the new Minister for Financial Services, with hopes for improvements in legislation and education standards.
With less than one-third of Australian business owners seeing an adviser, Business Health has detailed how advice practices can successfully target this underserved client segment.
The investment and wealth management firm has welcomed four new hires from Bell Potter Securities, strengthening its presence in the Queensland advice market.
