Insert chapter title over one or X two lines iii Contents Introduction 1 1. New Analysis: Superannuation Tax Concessions Big, Getting Bigger and Unfair. In addition, a new incentive for businesses to offer profit-sharing arrangements with their employees is proposed and there will be an assessment of proposals such as i) the elimination of the minimum corporate tax, ii) the current tax treatment of retained earnings and depreciation rules, and iii) potential cuts in employer-side payroll taxes—all promising ideas that we proposed in detail in our own tax proposal for Austria one year ago. PwC provides a useful summary of the problems with the current GST and potential barriers to reform of the GST. Pension wealth is unequally distributed and pension tax relief disproportionately benefits those who have more of it. Our report proposes four different reform scenarios to help address fiscal issues as well as structural challenges and inequities in Australia’s tax system. While the reductions in lower brackets would be beneficial particularly for low- and medium-income earners, the marginal tax rate of 55 percent, initially only introduced temporarily and which is one of the highest in th… Apart from any fair dealing for the purposes of private study, research, criticism or review, as permitted under the Copyright Act, no part may be reproduced by any process without written permission from The Tax Institute. The two overarching goals are to lower the overall tax burden and to align the tax system with environmental priorities. We must all focus on building trust in each other to support change that benefits all, not just a few. The legislated cuts up to 2024 deliver reductions in marginal rates at all income levels from $37,000 to $200,000. We support the principle that the burden of any tax change must not fall excessively on low-income households and that those most in need are protected and should receive full compensation for any increased GST payments. 3, Sydney: ACOSS. We face a situation in which rising to the top is only possible through owning and inheriting wealth, not through hard work, Last modified on Fri 4 Sep 2020 03.43 EDT. Company owners benefited from unprecedented state support programmes, including zero per cent loans backed by the Treasury. Its concern about intergenerational equity issues is narrow in scope. As PwC points out, the young have already paid a high economic price for COVID-19. The value of one-off adjustments to welfare payments, as occurred during the introduction of the GST, tends to diminish over time. Joe Zabar Deputy CEO, Catholic Social Services Australia. Taxation of savings should focus on income generated from savings and not the total stock of assets. Stay up on the tax news and analysis that matters to you. Fixing this must be a major focus of reform. If we regard taxation as the contribution we willingly make to improve our society, then reform will come. The temporary top personal income tax rate of 55 percent on income above €1 million will be extended for 2021. Australia faces significant economic challenges because of COVID-19, as do many of our key trading partners. A much stronger case perhaps rests on a view that GST would be a more efficient base than others for increasing total tax revenues, if and when we find a higher total tax burden unavoidable in coming years. This compensation creates some inefficiencies (for example from higher effective marginal tax rates) which may offset any efficiency gain from the changes to the GST.