‘Inefficient and complicated’ – that’s how Australia’s The Tax Institute described insurance taxes and duties in its additional 2020-21 Federal Budget submission.
“By driving up the price of insurance premiums, insurance taxes make policies prohibitive, particularly for lower income households,” wrote The Tax Institute president Peter Godber in the letter addressed to Treasurer Josh Frydenberg MP.
“The Tax Institute agrees with the recommendation contained in the Thodey Report that all insurance taxes and duties should be promptly repealed. Revenue streams should be replaced with more efficient and equitable taxes.”
In the tax association’s view, rebuilding the Australian economy in a post-pandemic landscape will require a thorough review and reform of the country’s existing tax system. Godber said it is only through significant reforms that the government will be able to generate sufficient revenue in the long-term to support public expenditure.
Meanwhile a new report by the Australian Financial Review quoted The Tax Institute’s tax policy & technical director Andrew Mills as saying: “Meaningful, lasting tax reform is no easy task, as evidenced by our long history of reviews and reports that have been largely ignored or fallen short of true change.”
