It’s time for proper reform

THE THINKING behind a recent ALP policy to crackdown on refundable tax credits really bugs me.

Yes, the policy was overhauled after criticism but, to me, it illustrated the lack of commitment to genuine tax reform at the federal level - by both major parties.

Not only was it an attack on retirees but it also sets my teeth on edge for this reason: It’s just more tinkering around the edges.

Another example was last year’s Centrelink debacle where “robo-debt” letters were sent to welfare recipients to recover supposedly overpaid money.

Indeed, it’s important to recover money if it was indeed fraudulently received. No one likes “cheats”.

But the manner in which this was done lacked fairness, compassion and stank of bullying against some of the people in our society least able to defend themselves.

Here was the Federal Government trying to pick up a few bucks here and there while avoiding the real issue: the need for proper tax reform.

In recent years, we had an inquiry into tax in Australia. What’s happened after that?

Not so much. Instead both levels of government go after people like retirees because they’re afraid to tackle what might end up being politically tricky.

It’s recognised that there are issues with our tax base. With the growing cost of providing things like health care, welfare and infrastructure, we’re finding it harder to fund everything and still maintain budget integrity.

Recently the International Monetary Fund called for a broader tax reform package, noting “inefficiencies” in the Australian system.

What we need is bold, worthwhile and fair reform, not irritating and ineffectual tinkering at the edges.