1 May 2010

Flat rate tax idea going nowhere, or waiting until the budget?

Former Canberra Times and current Age economic journo Peter Martin has been digging in the Henry Tax Review and writes about an important proposal for an $25,000 tax-free threshold coupled with a flat tax rate of 35% from $25,000 right up to $180,000, ditching the Medicare levy, and other simplifications for social security recipients.

Seems to make a lot of sense, and would sure make life a lot easier for thousands of low-income earners and pension recipients. Not to mention removing a massive number of people and related work from the ATO, Centrelink, etc.

So why didn't it get a guernsey? Or is it one of the things parked until budget time? Hopefully.

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