Tax changes to bring compliance costs down
The upcoming amendments to Australia’s tax law — which would allow taxpayers to self-assess indirect taxes — would bring the compliance and administrative costs down, according to the Assistant Treasurer and the Financial Services Minister, Bill Shorten.
Shorten’s comments came following the Government’s announcement that it was consulting on a draft legislation that introduces a self-assessment system for the GST, a wine equalisation tax, a luxury car tax and fuel tax credits.
“Bringing indirect taxes into a self assessment regime will decrease the need for advisers and administrators to have specialist knowledge of unique income tax or GST administration provisions,” Shorten said.
“This could, in turn, result in a reduction in compliance and administrative costs,” he added.
According to Shorten, the Government would harmonise the existing self-actuating system for indirect taxes with the income tax system of self-assessment.
The changes, which were announced in the 2009-10 Budget, are expected to take effect from 1 July, 2011, while the consultation closes on 15 February.
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