KPMG reports, via the AFR this morning, that Australian business and personal tax payers are paying above average levels of tax when compared to the OECD.
The level at which Australians “overpay” is no small measure, either. KPMG notes that, “our 30 per cent corporate tax rate and 45 per cent personal income tax rate are higher than the Organisation for Economic Co-operation and Development average of a 25.32 per cent for companies and 41.51 per cent for individuals.”
That’s a big margin when spread across the economy as a whole.
The Henry tax review was the Rudd/Gillard Government’s attempt to undertake a “root and branch” review of the Australian tax System with an aim to make it more productive, fairer and easier to navigate.
But many of the reforms recommended have never been implemented and the Australian tax system, it seems, remains cumbersome. According to KPMG’s national corporate tax leader David Linke, “it’s a disincentive to invest, and if we do not do something about it, foreign capital will go elsewhere.”
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