Henry review drops broad income tax cuts: report
The landmark tax review headed by Treasury secretary Ken Henry is expected to be devoid of any proposal for the broad income tax cuts.
The Weekend Australian reported that the Henry review, which was handed over to Federal Treasury boss Wayne Swan previous Wednesday, the major tax reform would be without tax cuts for all.
The report, citing the leaked content of the review, also said Henry report focus on revenue collection via a small set of general taxes.
But, the review also recommends the simplification of the process of paying tax and complexity in the tax system.
The paper also revealed that the budget will be unable to afford broad income tax cuts for the coming six years.
Higher-income earners are also expected to face a cut in their tax concessions, while low-income earners will be provided with new concessions.
Tax may become an important issue in the next year’s election campaign.