Treasury Secretary Ken Henry has unveiled a bold reform to simplify the tax system, which could eventually be used by up to half of Australia’s 12 million taxpayers, News Limited reports.
The reforms would see millions of workers not having to file annual tax returns. Instead taxpayers would receive a one-page summary from the Australian Tax Office (ATO) that would include a standard ‘deduction’ for necessary work expenses as well as salary details.
If taxpayers were happy with the ATO’s calculation they could tick the form and lodge it via the internet and wait for the refund, thus reducing their reliance on accountants.
Dr Henry flagged the plan to simplify the tax system to a high level business audience last week and is scheduled to deliver the plan to the Rudd Government by December.
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