The Government’s discussion on tax reform has been released leaving little doubt that things will change – we just don’t know what as yet.
Simply titled ‘Re: think’ the tax paper released by Treasurer Joe Hockey at the end of February opens the forum for a discussion on Australia’s future tax system. There is a lot of ‘conversation’ in this document and no recommendations.
Comments on the discussion paper can be made up until 1 June 2015. This is a wide-open debate and if you have a view on how things should change you should make a contribution. The Government asks contributors to focus on ideas and how revenue is raised (not just how much). For more information, we have provided the links below:
• Tax Discussion paper
• Media Release: Time to ‘re:think our tax system
• Speech: Launch of tax discussion paper
Intergenerational report
The Australian Government, at least once every five years, produces an Intergenerational Report. It assesses the long term sustainability of current Government policies and how the changes to the Australian population would impact on economic growth, workforce and public finances over the following 40 years.
The Government has released a new Intergenerational Report that contains an analysis of the key drivers of economic growth (population, participation and productivity) and the impact that changes in those drivers has on the standard of living and public policy. While not aimed specifically at tax issues, it is likely to form part of the framework for any upcoming tax reform ideas.
For more information, you can download the report here:
• Treasury – 2015 Intergenerational Report
Privacy and TFNs
The Privacy Commissioner has issued a new privacy rule that deals specifically with TFNs. It replaces the Tax File Number Guidelines 2011.
Privacy (Tax File Number) Rule 2015 regulates the collection, storage, use, disclosure, security and disposal of an individual’s TFN information. A breach of the TFN rule would be considered an interference with privacy under the Privacy Act and unauthorised use may also be an offence under the Taxation Administration Act 1953, resulting in penalties which could include imprisonment or fines.
The information provided in this rule is likely to be relevant to all as they come into contact with TFNs on a regular basis. Some of the practical issues to be aware of under the TFN rule include:
• When requesting an individual’s TFN it is necessary to take reasonable steps to ensure that the individual is informed of the law which authorises the collection of the TFN and the purpose of collecting the TFN;
• The recipient of a TFN is allowed to inform the individual of their TFN (e.g., if a client forgets their TFN or can’t find their TFN records);
• Organisations need to take reasonable steps to ensure that all staff are aware of the rules regarding the collection and use of TFNs (e.g. staff training sessions).
For more information please click the link below:
• Privacy (Tax File Number) Rule 2015
If you or anyone you know would like more information about any of the information in this article and how it may affect you, please feel free to contact our office on 03 9898 9221 and we would be happy to answer any questions.