Joe Hockey: Every aspect of tax system up for review
TREASURER Joe Hockey says every aspect of the tax system is up for review in the wake of a Federal Government discussion paper which suggests Australia relies too heavily on corporate and income taxes and not enough on consumption taxes like the GST.
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In highlighting the complexity of the current GST system, the 200-page paper used an example of how pizzas, pizza subs, pizza pockets and bakery-style pizza rolls are defined by law and taxed differently.
The Re:Think paper found the Federal Government collected about 70 per cent of its revenue from company tax and personal income tax.
That, the document warns, will discourage hard work and investment, creating the potential to harm Australia's economic growth in years to come.
The document also questions the rationale for tax breaks like negative gearing and super contributions.