The Economy & Tax Reform - Unfinished Business

Date: 06/07/2010

The economy's doing well, but can we expect more of the Henry Tax Review proposals to be adopted any time soon?

Most of the economic indicators are positive, says Professor Neville Norman of Melbourne University in his mid-year review. He believes the approaching Federal election will be a short-term negative for business, whatever the outcome. But - while growth forecasts have to be trimmed a little - a double-dip recession is still unlikely. Tax expert Michael Jones, of Cummings Flavel McCormack, joining the conversation, says there's much to like in the Henry tax review - it's a pity the election means that implementation of much of it is being delayed.
Like Professor Norman, he feels that its strength is that it's a comprehensive review, though company tax reforms are being introduced in bits and pieces. When will we see more of its recommendations become law? Professor Norman thinks most of it will, but it might take 25 years. Michael Jones says watch out for some changes once the election is fought and won.? ?