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MAY 2012

Tax Reform: Next Steps

The taxes Australians pay are an essential part of funding the world-class living standards and high quality services we all aspire to enjoy, while remaining one of the lowest taxing countries in the developed world.

As we grow, and the world around us changes, we need to make sure our tax system continues to support our standard of living and our success in the world.

Tax reform is necessary to help business and the community respond effectively to the challenges of our times in order to secure the best life for all Australians — the challenges and opportunities of a transforming economy, be it from an ageing population, a clean energy future, a technology revolution, or the Asian century.

Recognising this, the Government commissioned the most comprehensive review of Australia’s tax and transfer system in its first year. Following extensive consultation, the Australia’s Future Tax System review presented a vision of a future tax system that would position Australia to deal with the challenges of our transforming economy.

The Government’s response to the AFTS review, the Stronger, Fairer, Simpler package, included minerals and petroleum taxation, as well as wider business tax and superannuation reforms. The Government has progressed nearly 40 measures advancing the AFTS Review recommendations.

The Government has also engaged the broader community and business in ongoing discussions about tax reform, including through last year’s Tax Forum, comprising 180 participants, and through subsequent working groups and consultative roundtables.

Our tax reform road map builds on the work already undertaken and charts a course through the challenges and opportunities we’re facing. It continues the national conversation, and builds on the historic reforms that are already helping the economy and the community.

The road map shows the directions our reforms will take over the next ten years to improve our tax system and help keep Australia strong, fair and prosperous in the twenty-first century.

Signature of the Hon Wayne Swan MP

Signature of the Hon David Bradbury MP

The Hon Wayne Swan MP

Deputy Prime Minister and Treasurer

The Hon David Bradbury MP

Assistant Treasurer