Swan: Govt Introduces Tax Policies that Benefit Australia
Government tax measures have been configured to benefit both the public and business communities, especially the small players, according to Federal Treasurer Wayne Swan.
In his relentless efforts to promote Prime Minister Julia Gillard's flagship tax programmes, foremost of which is the looming minerals resource rent tax (MRRT), Mr Swan stressed that tax policies being employed by federal authorities were meant to deliver premiums that Australians would actually feel.
The mining tax for one, Mr Swan added, has gained considerable amounts of approval because many Australians have realised that the measures would be employed to finance the establishment of a better community.
"A a community in which mineral resources, which belong to all of us, are used for the benefit of all of us, to strengthen our whole economy, not just a very small handful," the treasurer was reported by the Australian Associated Press (AAP) as saying on Friday.
On that account, Mr Swan declared: "I can also confidently say that I believe the Australian community is also increasingly on board."
Even small business players have come on board in supporting the MRRT and other federal tax programs that would bring in further benefits for the general business community, Mr Swan claimed.
"And that's because it's a no-brainer to use massive mining profits to help those millions of businesses who aren't in the fast lane," Mr Swan said.
Along that line, Mr Swan revealed that the government intends to introduce tax measures that would provide sufficient breaks for small businesses.
"We know that some businesses struggle with the tax system ... We're looking at giving them better recognition for their losses. They are being taxed too much when they're least profitable," Swan was reported by the Australian Financial Review as saying on Friday.
He added that this early, talks were underway between the government and representatives of small businesses that hopefully would come with helpful suggestions to maximise profitability in the sector.
The government, Mr Swan said, has been considering effective ways that would eliminate as much red tape as possible and to slash costs of business compliance.
Another emerging proposal is the adoption of tax relief in the form of 'carry-back', which would allow small companies "to get a refund in a year of loss based on tax paid on profits in prior years," the AFR wrote.
Such scheme was being implemented in key global economies, such as the United States, Canada and Germany, Mr Swan said.
"It may make sense for Australia to have a carry-back period within this range, perhaps with a cap to protect the integrity of the tax system ... We do need to recognise that those that want to reorient their activities, change their focus, need to get some relief in the tax system," the treasurer added.
A working group has been tasked to look into the details of the program and is expected to submit its proposal by the end of March, Mr Swan said.
The MRRT is expected to gain parliamentary approval next week and Mr Swan believes that history will be the judge on how the tax, and all the other tax measures pushed by the Labor-led government, will impact on the lives of Australians.