Bankers Propose More Tax Breaks for Australian Parents
Some Bank Staff Opt to Leave Work to Care for Children
The Australian Bankers' Association (ABA) has proposed more tax breaks for Australian parents in a position paper it sent to Treasury.
The bankers aim to assist parents who want to be employed but could not afford the high cost of childcare. Their proposal is for the federal government to intervene in the form of childcare benefits.
"Member banks have noticed the sensitivity of staff members to income tax provisions and the general treatment of childcare. The financial trade off of childcare versus stay-at-home means that some staff choose to leave work to look after children," ABA said in a statement.
Parliament will tackle the ABA proposals at the national forum on Oct. 4 and 5 at the Parliament House in Canberra.
ABA said the changes are incremental to the Australian tax system instead of large-scale amendments.
"As a mid-level economic power, Australia should determine its general direction of tax changes based on international consensus as reflected in country practice and international agreements, while ensuring that Australia remains an attractive destination for inbound investment and a significant base for outbound investment," ABA said.
ABA also proposed exemption from interest withholding tax for non-residents who own domestic retail deposit accounts and wholesale borrowers. It also supported the 25 per cent rate for corporate tax as a sensible medium-term goal from the current 30 per cent. The rate cut was recommended by former Treasury head Ken Henry.
It also pushed for less reliance by Australian states on stamp duties on land transfers and insurance for new tax measures that would be revenue neutral and improve economic efficiency.
The forum will mainly tackle Mr Henry's May 2010 tax review which recommended simplification of Australia's tax system. The review found that of 125 taxes, only 10 generate 90 per cent of Australia's total tax revenue.
Expected to participate in the forum are 230 representatives of federal, state and territory governments, independent legislators, business groups, unions, educational institutions and superannuation and tax experts.
