Fears action on tax will be watered down
Concerns are continuing to surface that the tax white paper process, initially thought to be dealing with big ticket super items, may not be completed before an election is called.
The government released its tax discussion paper in March this year after several months’ delay. A green paper is expected to be released before the end of 2015, making way for the final white paper in the first half of 2016.
Following an extension of the submissions deadline and given the current political environment for the government, H&R Block’s director of tax communications, Mark Chapman, fears the final paper may not see the light of day before the next federal election.
“The Treasury department don’t have a lot of political capital to get through so they might shy away from making some of the more difficult decisions or at the very least kick them into the long grass until a second term, if they win a second term,” Mr Chapman told SMSF Adviser.
At the moment, the government and Treasury are considering submissions and consulting with the industry through roundtable discussions, the SMSF Association’s head of policy, Jordan George, told SMSF Adviser.
“Treasury has been meeting with different stakeholders in the superannuation and retirement income sector to understand what their priorities and concerns around the tax white paper are. That was a useful process – being able to discuss what the industry believes are the best outcomes or approaches for super and the tax white paper,” he said.
