Henry Tax Review
Encyclopedia
The Australia's Future Tax System Review, informally known as the Henry Tax Review was commissioned by the Rudd Government
in 2008 and published in 2010. The review was intended to guide tax system reforms over the next 10 to 20 years.
held in April 2008.
The review was a "root and branch" review, restricted only in that it could not consider increasing the rate or broadening the base of the Goods and Services Tax
, imposing tax on superannuation payments to retirees over 60 years of age, or already-announced personal income tax changes.
1. Concentrating revenue raising on four efficient tax bases: personal income, business income, private consumption, and economic rents from natural resources and land. Other taxes may be retained if they serve a specific policy purpose such as discouraging smoking or traffic congestion. Taxes fitting into neither of these categories should eventually be abolished.
2. Configuring taxes and transfers to support productivity, participation and growth.
3. An equitable, transparent and simplified personal income tax: a much higher tax-free threshold (around AUD 25,000), only two tax brackets, and a simplification of superannuation, deductions and offsets.
4. A fair, adequate, and work supportive transfer system.
5. Integrating consumption tax compliance with business systems.
6. Efficient land and resource taxation.
7. Completing retirement income reform and securing aged care.
8. Toward more affordable housing: substantially increase rent assistance, gradually move to a uniform land tax and remove transfer taxes (stamp duty), and gradually move to a neutral treatment of rental and owner-occupied housing.
9. A more open, understandable and responsive tax system.
was the move to implement a Resources Super Profit Tax. The proposal was highly controversial, and following the appointment of Julia Gillard
as Prime Minister
, was replaced by a Mineral Resource Rent Tax.
Kevin Rudd
Kevin Michael Rudd is an Australian politician who was the 26th Prime Minister of Australia from 2007 to 2010. He has been Minister for Foreign Affairs since 2010...
in 2008 and published in 2010. The review was intended to guide tax system reforms over the next 10 to 20 years.
Remit
The review was commissioned as one of the specific outcomes from the Australia 2020 SummitAustralia 2020 Summit
The Australia 2020 Summit was a convention, referred to in Australian media as a summit, which was held on 19-20 April 2008 in Canberra, Australia, aiming to "help shape a long term strategy for the nation's future"...
held in April 2008.
The review was a "root and branch" review, restricted only in that it could not consider increasing the rate or broadening the base of the Goods and Services Tax
Goods and Services Tax
A goods and services tax or value added tax is a tax on exchanges.By country:*Goods and Services Tax *Goods and Services Tax *Goods and Services Tax *Goods and Services Tax...
, imposing tax on superannuation payments to retirees over 60 years of age, or already-announced personal income tax changes.
Panel
The review panel members were:- Dr Ken HenryKen HenryKenneth "Ken" Charles Henry was a speed skater from the United States.Henry won the gold medal in the 500 m at the 1952 Winter Olympics held in Oslo, Norway in front of 28,000 people at Bislett Stadium in a time of 43.2 seconds. Two weeks later, he won the same title in the annual World Meet at...
(Chair), Secretary to the Treasury - Dr Jeff Harmer, Secretary, Department of Families, Housing, Community Services and Indigenous Affairs
- Professor John Piggott, Professor of Economics and Associate Dean, Research, Australian School of Business, University of New South WalesUniversity of New South WalesThe University of New South Wales , is a research-focused university based in Kensington, a suburb in Sydney, New South Wales, Australia...
- Ms Heather RidoutHeather RidoutHeather Ridout is Chief Executive of the Australian Industry Group, an industry association providing advocacy and services to businesses in a broad range of sectors including manufacturing, construction, automotive, ICT, transport, defence, labour hire and other industries.Running parallel to...
, Chief Executive, Australian Industry GroupAustralian Industry GroupThe Australian Industry Group, also called Ai Group, is an employers' organisation, whose member's employ over 750,000 staff from throughout Australia... - Mr Greg SmithGreg SmithGregory Smith may refer to:*Greg Smith , Australian Liberal politician; New South Wales Legislative Assembly member for Epping and Attorney-General of New South Wales...
, Adjunct Professor, Economic and Social Policy, Australian Catholic UniversityAustralian Catholic UniversityAustralian Catholic University is a national public university. It has six campuses and offers programs in five faculties throughout Australia.-History:...
Recommendations
The report made 138 specific recommendations, grouped under nine broad themes.1. Concentrating revenue raising on four efficient tax bases: personal income, business income, private consumption, and economic rents from natural resources and land. Other taxes may be retained if they serve a specific policy purpose such as discouraging smoking or traffic congestion. Taxes fitting into neither of these categories should eventually be abolished.
2. Configuring taxes and transfers to support productivity, participation and growth.
3. An equitable, transparent and simplified personal income tax: a much higher tax-free threshold (around AUD 25,000), only two tax brackets, and a simplification of superannuation, deductions and offsets.
4. A fair, adequate, and work supportive transfer system.
5. Integrating consumption tax compliance with business systems.
6. Efficient land and resource taxation.
7. Completing retirement income reform and securing aged care.
8. Toward more affordable housing: substantially increase rent assistance, gradually move to a uniform land tax and remove transfer taxes (stamp duty), and gradually move to a neutral treatment of rental and owner-occupied housing.
9. A more open, understandable and responsive tax system.
Rudd government
The major item from the Henry Review implemented by the Rudd GovernmentKevin Rudd
Kevin Michael Rudd is an Australian politician who was the 26th Prime Minister of Australia from 2007 to 2010. He has been Minister for Foreign Affairs since 2010...
was the move to implement a Resources Super Profit Tax. The proposal was highly controversial, and following the appointment of Julia Gillard
Julia Gillard
Julia Eileen Gillard is the 27th and current Prime Minister of Australia, in office since June 2010.Gillard was born in Barry, Vale of Glamorgan, Wales and migrated with her family to Adelaide, Australia in 1966, attending Mitcham Demonstration School and Unley High School. In 1982 Gillard moved...
as Prime Minister
Prime Minister of Australia
The Prime Minister of the Commonwealth of Australia is the highest minister of the Crown, leader of the Cabinet and Head of Her Majesty's Australian Government, holding office on commission from the Governor-General of Australia. The office of Prime Minister is, in practice, the most powerful...
, was replaced by a Mineral Resource Rent Tax.
External links
- Australia's Future Tax System Review official homepage.