30 August 2005 
 
The Institute of Chartered Accountants in Australia has welcomed the re-opening of the tax debate saying the top rate of personal tax is still too high in Australia.  
 
The Institute said the recently announced budget tax cuts were welcomed but did not go far enough and the budget moves failed to introduce much needed structural reform.  
 
It said there was a need to reduce the highest marginal tax rate as part of a long term process of more closely aligning it with the corporate tax rate of 30%.  
 
“The personal tax system is in need of an overhaul that goes beyond debates around the top rate of tax,” said Institute Tax Counsel, Mr Ali Noroozi.  
 
Other important issues to be addressed included addressing Effective Marginal Tax Rate Inequities (the affect whereby people are discouraged to undertake further work due to the combined effect of loss of welfare and increased income tax) and the introduction of optional tax returns.