Tax reforms expected to strengthen economy

Treasury secretary Ken Henry’s proposed tax reforms will help to strengthen the economy in the long term, according to a prominent business lobby group.

Australian Chamber of Commerce and Industry chief executive Peter Anderson said the Federal Government has a once-in-a-decade opportunity to make sweeping changes in a major reform of the tax system, claiming the review will provide an opportunity to establish a stronger, more productive and more competitive economy.

“We need to have a long-term reform agenda for our tax system that looks beyond the immediate budgetary pressures,” he said.

Henry, the chairman of the Henry Tax Review, is due to hand down a report 18 months in the making to the government any day now, proposing a number of sweeping changes to the Australian tax 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.

Anderson believes the new system should creative incentives for entrepreneurship, business growth and competitiveness and increase workforce participation, while meeting the pressures from a growing and ageing population.

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