The government has surprised many voters and parliament members with a totally new direction on tax reform.
After months of suggesting there could be major changes to many areas of the tax system, Malcolm Turnbull is reportedly ready to abandon the idea of any serious tax reform.
After many Australians were left furious with the harsh Hockey/Abbott budgets, Mr Turnbull has decided to take a softer approach in a move to appease the people and no doubt gain a few more votes come election time.
The government has so far ruled out drastic changes in favour ‘politically safe’ options like reigning in on negative gearing by wealthy investors, and reducing the amount of pre-tax money people can put into their superannuation accounts.
These relatively small measures are likely to sit well with many voters who were firmly against the government’s earlier proposals like increasing the GST to 15 per cent.
The Coalition is set to announce its final budget package within weeks. All that’s left to do now if wait and see if any more turnarounds or backflips are performed between now and then.
Some voters are skeptical this will be the last we hear about tax reform before the election, pointing out the back and forth debate that has plagued the government for months.
Others have welcomed the news, saying the moderate proposed changes will help middle-income earners, unlike the Hockey/Abbott budget, which was seen as a major win for the wealthy and a loss the everyday Australians.
What are your thoughts on these new tax ideas?