Tony Abbott Calls Tax Forum Pointless Talkfest

The ongoing two-day tax forum in Canberra has attracted a lot of media attention because of the number of prominent people who are participating. However, one person is conspicuously absent from the media event - opposition leader Tony Abbott.

Mr Abbott's absence is explained to his viewing the tax forum as a pointless talkfest.

Greens leader Bob Brown, who sought a 5 per cent tax cut for small enterprises, hit the opposition leader for his refusal to participate in the forum. Mr Brown said Mr Abbott let the country down.

Some observers said the opposition is not missing much by not attending since many of the proposals aired were predictable, centering on reducing the business tax rate. Moreover, they have been observed still to be using old arguments such as the tax rate must be low enough to attract foreign capital.

Prime Minister Julia Gillard, who anticipated an overflow of proposals in the forum, had urged participants to back up their clever ideas with measures that would identify where would the money come from.

New South Wales Treasurer Mike Baird criticised the forum for being a "tick the box exercise" because of Ms Gillard and Treasurer Wayne Swan ruling out even before the start of the forum increasing the rate of the general sales tax and amending the mining tax and carbon tax.

"If you want to do this properly there can be no caveats - everything has to be on the table," couriermail.com.au quoted Mr Baird.

He agreed with proposals to remove inefficient state taxes, but sought federal compensation.

After much discussion on day one of the business tax, state taxes and social and environmental taxes, Mr Swan called for a framework of action at the end of each session.

While some participants said two days are not sufficient to discuss taxes, experts pointed out that with so many taxation specialists and power brokers in one roof, the forum at least provides an opportunity to help prepare Australia for the challenges ahead, particularly the country's ageing population and the resources boom.