What we know about the Henry tax review so far, according to reports:
- Complex mining royalty system will be overhauled - state-based royalties on mining expected to be replaced with a resource rent tax.
- Government aims to cut the amount of tax faced by most Australians.
- Simpler system for individual tax returns expected - such as pre-filled income tax forms.
- Social security payments set to be overhauled - possibly the family tax system, with payments to families to be reduced once children reach school age.
- The tax review is likely to provide a 10-year plan for tax reform with some measures the government can deal with immediately. It is not expected to contain draft legislation.
- May propose a road congestion tax, after Ken Henry estimated congestion costs would increase to around $20 billion by 2020.
- Could encourage a tax policy to boost participation by older workers.
- Could recommend replacing Australia’s alcohol excise regime with a cleaner ‘‘volumetric’’ system based on alcohol content.
- May recommend the clawback of fringe benefits tax concessions used by welfare agencies to provide top-up payments to their workers. It could suggest government agencies pay charities through direct grants.
- Contains modelling on the effect of the proposed changes on the economy.
- Includes a couple of chapters on environmental taxation.
AAP