Tax Reform

Tax in Australia is complex as it is imposed by several layers of government and at each level retailers are asked to either comply or collect on the governments' behalf.

Compliance of the Commonwealth Tax Act is a costly exercise for many retailers in particular the smaller retailers without access to highly developed tax advisers.

This cost of compliance and collection has a negative impact upon competiveness and can distort the operational paradigm of a retailer requiring that organisation to lose focus on the market in which they operate and at the very least loss competitiveness.

The total tax burden faced by retailers, taking into account taxes paid to state and federal governments and collected on their behalf, is poorly understood and significantly greater than many realise. An excessive tax burden, and a tax system that unnecessarily distorts decision making, weighs on competitiveness and business investment in Australia.

The ARA supports a comprehensive independent review of the tax system evoking research which considers why and how the system operates. This review should examine all state and federal taxes, with a particular focus on the effectiveness of current revenue streams and revenue sharing arrangements, and the sustainability of current arrangements.