Thinking beyond borders – tax reform for the 21st century 
 
A joint submission by KPMG and the Institute of Chartered Accountants in Australia to the Australia’s Future Tax System Review. Few issues excite stronger reactions and have broader impacts than taxation. Recent global financial market developments have helped to highlight the importance of preparing Australia’s economy to withstand the rigours of the 21st century. 
 
Download the Thinking beyond borders – tax reform for the 21st century (PDF: 2165KB) 
 
 
 
 
 
Entity flow-through (EFT) Submission 
 
Small and medium-sized enterprises (SMEs) constantly identify the complexity of the taxation system, and the cost of compliance associated with it, as one of their main causes of concern. This is despite the various concessions in the tax legislation that seeks to reduce the complexity of the taxation system for this sector. 
 
One option identified as potentially reducing the complexity and costs of the taxation system for SMEs is the adoption of a 'flow-through' system of taxation for commonly used entities.  
 
For more information  
 
Download the Entity flow-through (EFT) Submission (PDF: 1109KB) 
 
 
 
 
 
Australia’s Proposed Emission Trading Scheme – The Tax Policy Dimension 
 
With Australia moving towards an integrated action to reduce carbon emissions, including developing an Australian Emissions Trading Scheme (AETS), the effects of such a scheme need to be properly addressed by the Australian tax system. 
 
A joint report of the Institute of Chartered Accountants in Australia (the Institute) and Ernst & Young, recommends tax policies that are consistent with reducing global carbon emissions while maintaining and enhancing Australia’s economic attractiveness.  
 
For more information  
 
Download Australia’s Proposed Emissions Trading Scheme – The Tax Policy Dimension (PDF: 993KB) 
 
 
 
 
 
Fringe Benefit Tax Design 
 
Since its introduction in 1986, Australia’s fringe benefits tax (FBT) has grown to become a considerable part of the day-to-day compliance burden of Australian business, none more so than for the small- to medium- sized sectors. The tax has gone through many changes in this time and has been the subject of considerable debate around complexity, inequities and economic inefficiencies.  
 
While reform of FBT is not a new issue, recent amendments to personal income tax have mounted an even stronger case for its review. This paper identifies the key issues inherent in the current application of the FBT and makes a number of recommendations on how to improve the system. 
 
Download the paper: 
 
Fringe benefit tax design: decision time (PDF: 461KB) 
 
 
 
 
 
Definition of Small Business 
 
This paper identifies that in order to reduce the regulatory burden, a simpler definition of 'small business' should be applied consistently throughout tax legislation.  
Download the paper: 
 
Research and recommendations on the definition of small business (PDF: 440KB).