Big 4 accounting firm KPMG is the latest organisation to call for tax reform. Negative gearing, superannuation tax breaks, capital gains tax discounts and increasing the rate of the GST are some of the topics on the agenda.
Change is inevitable, regardless of which of the two major parties is in power. Our stance is to basically ignore all the chattering and get on with using the tax concessions that are currently available, such as the low tax rate on superannuation and dividend imputation.
When changes occur, we will advise our clients and adapt accordingly. It is important to bear in mind that legislation must be passed through both houses of parliament before it becomes law and it can be a long and tortuous process, especially when the government of the day does not control the Senate. When reforms are announced, there is no guarantee that the changes will become law without alteration.
To see what is on KPMG’s mind, here is a link to report in the Melbourne Age: