On Friday 17 October, the Institute and KPMG lodged a joint submission with the Australia’s Future Tax System Review Panel (the Panel) in response to its press release of 19 August.  
 
In the submission, the Institute and KPMG focus principally on options associated with reforms to the taxation of capital income and, in particular, reforms to the Australian corporate tax system. Among other recommendations, the submission proposes a reduction in the corporate tax rate and improvement of the current dividend imputation system. 
 
The Institute’s key submission points include recommendations that the Australia’s Future Tax System (AFTS) Review should:

• Analyse Australia’s taxation of capital income regime and assess whether Australia has the right incentives to provide capital to businesses
• Examine whether Australia’s dividend imputation system should be retained or improved
• Further evaluate alternate corporate tax systems in the Australian context. It is recommended that the merits of alternates in certain countries should be evaluated to determine whether such systems offer (in whole or in part) possible reform options for Australia.

• The Institute: Thinking beyond borders – tax reform for the 21st century
• The Institute: Tax Bulletin