Sector in the dark on tax summit

THE tax summit due to be held before June is under a cloud.

THE tax summit due to be held before June is under a cloud.

Industry insiders are questioning why no details have yet been forthcoming even though four months have passed since the federal government committed to it.

The Tax Institute of Australia, the Business Council of Australia and the association of small miners, AMEC, have all raised concerns about the lack of information about the summit and concerns that, even if it goes ahead, it won't be far reaching enough.

One of the key commitments Labor made to the rural independents to win their support to form minority government was to hold a tax summit by June this year to discuss the wide-ranging recommendations of the Henry review. Rob Oakeshott highlighted the pledge in his 17-minute speech announcing his decision to back Labor on September 7 last year.

"We have now got a tax summit that this country needs," Mr Oakeshott said at the time. "By June 2011, we've got a commitment to have the Henry tax review thrown into the public domain with full recommendations from government and a fair-dinkum open debate in this country."

Opposition assistant Treasury spokesman Mathias Cormann has written to Mr Oakeshott and fellow NSW independent Tony Windsor raising concerns about the lack of information about the summit.

"The federal government does not appear to have much appetite to do the hard yards when it comes to genuine tax reform," Senator Cormann wrote.

Robert Jeremenko, senior tax counsel for the Taxation Institute of Australia, said that, so far, no details about the summit had emerged.

"We want to make sure that there is a structured and strategic approach," Mr Jeremenko said. "We are worried that the lack of details suggests that there might not be. There are no details about the summit, who is invited, what will be addressed or how it will be addressed, or when it will happen and for how long."

The tax institute wrote to Wayne Swan last month to offer to help set the design of the summit but has not had its offer taken up.

"It's a little disappointing that we are less than six months away and we have nothing more than a one-sentence commitment to what it is all about," Mr Jeremenko said.

BCA chief executive Katie Lahey said the tax summit was an opportunity to further the cause of tax reform "but only if the government allows a wide scope of options to be considered" aimed at boosting productivity and efficiency in the tax system.

Ms Lahey said the review by outgoing Treasury secretary Ken Henry provided a blueprint for the next phase of tax reform, but "more effort is needed before, during and after the summit to explain the review's key findings".

AMEC chief executive Simon Bennison said he did not believe a tax summit would be complete without the proposed mineral resources rent tax being put on the table.

"If you are serious about tax reform you have to include it," Mr Bennison said. "Everything has to be put on the table. The talk is that Treasury don't want a bar of (the tax summit). Given that it was committed to during the election period they should ensure that it happens properly."

Mr Bennison would also like to see wider macroeconomic issues discussed, such as the impact of the "small Australia" policy concerning immigration that both sides of politics have raised.

The tax institute also wants the GST on the agenda, echoing West Australian Treasurer Christian Porter, who said: "The GST allocation is a crucial issue that must be at least talked about."

Neither Mr Oakeshott nor Mr Windsor returned The Weekend Australian's calls to comment on the delays surrounding the tax summit's details or how it might affect their support for the minority government.

A spokesman for the government said: "The timing of the tax forum is subject to further ministerial processes and discussions with the crossbenchers, and we look forward to releasing more details once the date is agreed."