Duelling Tax Reviews

While the Government has the Henry Tax Review – the tax review headed by Dr Ken Henry, the Treasury Secretary, and which is reviewing all taxes and government benefit systems – the Opposition has established the “other Henry” review, headed by leading industry economist, Dr Henry Ergas.

The preliminary indications of the other Henry review is that the Opposition will be looking at broadening the tax base (ie removal or capping of exemptions and deductions) in exchange for lowering the tax rates as well as state taxes – particularly stamp duty and insurance taxes.

As the Henry review will provide its findings in respect of retirement incomes ahead of the May 2009 Budget - possibly during March – the first duel between the two reviews may only be a few weeks away!