One of the first questions business owners ask when a new government enters power is what changes, if any, are coming in the area of tax.
Revenue Minister Stuart Nash provided a good steer on that when he addressed Chartered Accountants Australia and New Zealand last November. The biggest question, he said, is whether our current system is fit for purpose. A week later, the Government demonstrated it’s commitment to finding an answer by announcing the tax working group, to be headed by Sir Michael Cullen. It’s brief is wide and includes specific emphasis on GST (but is unlikely to include GST rates) and the overheated housing market (almost certainly by focusing on speculative property buying).
Other issues the Minister highlighted:
If you’ve ever wondered if you might have a tax refund tucked away at IRD, here’s some good news – there is a proposal for refunds to be issued automatically.
This is all part of the IRD’s ongoing drive to work well with businesses. One thing you can expect to see is better communication with tax professionals before policy proposals are developed or implemented. This should minimise well-meant but fundamentally unworkable policy being introduced.