Deloitte response to the change in Federal Government
Tax policy considerations and actions
The new Government inherits an economy in much stronger shape than its peers. Compared with the likes of the United States, the Eurozone, the United Kingdom and Japan, Australia has rather lower unemployment and a track record of stronger growth that has left us as a standout on the international stage, as well as public sector debts and deficits that are a fraction of those of our peers.
Yet the flipside to that is a range of challenges to Australia’s near term economic performance. Although we have performed better than our peers, forecasts from both Federal Treasury and Deloitte Access Economics indicate that economic growth will remain below trend for a time.
Official estimates point to a surplus in four years, but the Budget repair task may well be rather larger than that implies, because the new policy costs are set to accelerate rapidly beyond 2016-17.
The new Government needs to urgently focus on tax policy, and has committed to a Tax Reform process. This is a priority.
This document summarises the key Coalition tax policy announcements, and our tax action plan for the new Government.