Australian tax system to get a makeover

Rumours are abound that the Australian tax system is set for a major overhaul, after Treasury boss Ken Henry spent 18 months reviewing the current system.

According to reports, Henry is expected to recommend the Government scrap many of its 125 taxes, which could see wealthy Australians lose lucrative tax breaks covering work expenses, and mum and dad investors get a boost to their bank savings.

Henry is expected to hand his 1,000 page report- which is likely to result in major reforms – to the Federal Government within days.

However, Treasurer Wayne Swan said it is too soon to speculate on what the Henry review would recommend.

“It is too early for people to speculate about what may be or not be in the Henry review,” he said. “We will receive that review soon. We will deal with it early next year. I guess there will be an enormous amount of speculation – much of it inaccurate – between now and then.”

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