Post-Implementation Review of the Tax Design Review Panel Recommendations

Background

On 22 August 2008, the then Assistant Treasurer released  the Tax Design Review Panel’s report Better Tax Design and Implementation . The report made 26 recommendations and all were accepted in principle by the Government when released.

Recommendation 26 of the Tax Design Review Panel’s report, noted that:

The Government should ask the Board of Taxation to review the tax design process after two years and report to Government on the extent to which there are demonstrated improvements.

The then Assistant Treasurer wrote to the Board of Taxation in September 2008, requesting that the Board of Taxation conduct a review of the tax design review process, as recommended by the Tax Design Review Panel. The Board was asked to commence the review in late 2010 and to report to the Assistant Treasurer on whether there have been any improvements as a result of implementing the Panel’s recommendations.

Working Group

The Board appointed a Working Group of its members comprising Mr Peter Quiggin PSM (Chairman), Mr Keith James and Ms Elizabeth Jameson to oversee the Board’s review. In addition the Board asked Mr Neil Wilson, Chair of the Tax Design Review Panel, to be a member of the Board’s working group.

Discussion paper, consultation and submissions

To assist in the Review process, the Board released a discussion paper on 16 February 2011. The Board also conducted consultation meetings on 4 March 2011 in Melbourne and 10 March 2011 in Sydney. The consultation meetings were attended by representatives from taxation professional bodies and major law and accounting firms.

The Board requested written submissions on the post-implementation review of the Tax Design Review Panel recommendations by 28 March 2011. All submissions received were acknowledged. Copies of public submissions made to the Board are available below.

Board’s Report

The Board completed its post-implementation review of the Tax Design Review Panel recommendations and provided its report to the Assistant Treasurer in December 2011. In preparing its report the Board took into account the various submissions to the review and discussions with stakeholders and its expert panel.

The Board made an evaluation of the extent to which the tax design process had improved following the Tax Design Review Panel’s recommendations. The evaluation considered a number of dimensions of the tax design process including, in particular, the timeliness of legislation, the quality and quantity of consultation and the involvement of the private sector. The Board made 19 conclusions and recommendations.

Government Response

On 6 September 2012, the Assistant Treasurer and Minister Assisting for Deregulation, the Hon David Bradbury MP, announced the release of the Board of Taxation’s report on its Post-Implementation Review of the Tax Design Review Panel recommendation.

In responding to the report, the Assistant Treasurer announced that the ‘Government has agreed to 11 of the Board’s recommendations, agreed in principle to one recommendation and noted the remainder of the Board’s recommendations.’

Further information on this review can be obtained from the Board of Taxation Secretariat on (02) 6263 4366 or at Taxboard@treasury.gov.au.

Submissions received