This submission responds to the invitation for comments on the Re:think tax discussion paper released on 30 March 2015. The submission does not attempt to cover all the topics canvassed by the discussion paper. Section 2 comments on broad objectives and principles of tax reform, Section 3 covers what the author considers to be the issues of primary importance in reform, while Section 4 covers items of secondary importance. Finally, Section 5 deals with a few issues in the tax policy development process. In each case, in addition to discussing the issues and suggesting solutions, the submission answers specific questions posed in the discussion paper and draws attention to relevant publications in which the issues are discussed more fully.
The submission identifies directions for reform but makes no attempt to suggest sequencing or timing or to place its recommendations in the current budget context. It is recognised that not all the recommendations could be implemented at the present time, and that even in the medium to longer term they would imply a lower path for government expenditure than currently in prospect. However, this is the only way in which the benefits of smaller government and a lower overall tax burden can be achieved — an objective that underpins this submission.