Business Tax Working Group – membership and terms of reference

On 12 October 2011, the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP, issued a media release announcing the terms of reference and appointments to a working group that will look at how our tax system can best help businesses respond to the pressures of a changing economy.

The working group will look at reforms that can increase productivity and deliver tax relief to struggling businesses in our patchwork economy and develop a set of savings options within business tax, such as broadening the base and addressing loopholes or unnecessary concessions.

The working group will focus on reform options that relieve the taxation of new investment:

• In the near term, by reforming the tax treatment of business losses
• In the longer term, by reducing the corporate tax rate further or moving to a business expenditure tax system, particularly an allowance for corporate equity.

For its final reports, the working group will provide specific analysis of these business tax reform options, including: 

• Descriptions of how these reform options operate overseas and evidence on their effectiveness
• Potential priorities for reform, including transitional paths
• Worked examples of how these options would affect business taxpayers, including their financial and tax accounts
• Revenue integrity provisions
• How the reform options integrate with the rest of the tax system now and in the future
• Impacts on national income and macroeconomic risks
• Costings.

The working group will also identify a range of off-setting budget savings from existing Commonwealth business taxation (or spending) measures. Changes to the GST should not be considered.

In developing its recommendations, the working group should have regard to the report of the Australia’s Future Tax System Review and relevant international experience and expertise.

Article last updated 21 March 2012