Henry told us in his guide to the Institutional Framework of Taxation in Australia that the Australian

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Question:

Henry told us in his guide to the Institutional Framework of Taxation in Australia that the Australian Taxation System is one of the most complex in the world and is made up of approximately 125 taxes including taxes such as Income Tax, Capital Gains Tax, Fringe Benefits Tax and Goods and Services Tax just to name a few. He also mentioned that there are many different organisations that play different and varied roles within this system to ensure its integrity and all Australians are equally treated with equity.

The Australian Taxation System is embedded in the way of life for all Australian taxpayers, we pay tax on our income, we pay tax when we purchase goods and use services, we pay tax when we sell assets and this is just to name a few but in return the Government provides services and benefits e.g. hospitals, schools, defence, and financial assistance to those in need etc.
As we know the government relies very heavily on the revenue from taxation to be able to finance its activities and services it offers to the public and reforms on taxation are often a focus of governments. An area of taxation reform that is constantly under review is a rise in the current GST rate or broaden the GST base (e.g. make basic foods taxable). Many feel that this would solve some of the government’s financial woes, whilst other are adamantly against any rise or broaden of the tax base. This is a very political issue and is extremely topical as the government, opposition and the premiers of the Australian States/Terrorities are engaged in heated debates regarding the issue of GST and its possible reform.

The assessment requires you to review this topical area of taxation (GST Reform).

Some views may be that it is not unreasonable to raise the GST rate as compared to other OECD countries the Australian rate is very low, that broadening the tax base will make GST a simpler tax remembering that businesses are responsible for its collection and a more simply system will lessen their burden. Others may view it as that the GST rate should not be raised or the base broaden as it will cause more financial stress on some areas of the public, it may be the view that it is too much of a problem politically for a government to introduce changes to GST especially as we head into an election year ….. WHAT WILL YOUR VIEW BE?

Required:

Produce an essay on your opinion.