In the article Inquiries galore Victoria Papandrea analyses the changes that may happen due to an effect of the commonly known the Ripoll, Henry and Cooper reviews that discusse the financial products, taxation and superannuation. Papandrea (2009) indicates that the main purpose of those reviews is ‘a profound effect on the financial services industry.’
Analyzing the Ripoll Review, Papandrea says about the priorities of the role of adviser, commissions, banks, marketing and advertising campaigns, licensing, financial literature, etc. in the development of the current economical situation. However, nowadays, those changes seem like an anomaly.
The government tries to change the system and support licensees and advisers, rather than provide a necessary reforms and complex regulations and restrictions. Writing about the Henry review, Papandrea indicates its main idea as the recommendations that can improve the current financial situation.
It is the opportunity for government to regulate the tax system. The Cooper review, according to Papandrea (2009), is full of the expectations about the ‘greatest potential of the Australian superannuation system for future generation.’
Papandrea emphasizes the importance of the early realization of the preliminary recommendations in response to cover a number of problems within the current economic situation.
Thompson in his research analyses the report of the Henry Review of the Australian taxation and transfers system that was proposed by the Labor Party in 2007. The key moments of the author’s analysis are the current 125 taxes in Australia.
However, the author emphasizes that 90 per cent of the total number are based on ten of those taxes that leads to the discussions about its capacity and the real expediency. Describing the discussions around the governmental programs, Thompson (2010, p.305) indicates that the majority of the commentators criticize the government for adopting only a few of the tax programs.
Exploring the Henry Report, Thompson (2010, p.305) says about such fundamental recommendations as the personal income tax, business income, private consumption and economic rents, while the other taxes should be maintained only in case of its real efficiency.
Thompson analyses the government’s response to the Henry Review, indicating the high level of ineffective misinterpretations. However, the measures announced in the 2011 Budget include the recommendation of the Review such as the tax paid by the financial institutions on offshore borrowings.
Thompson concludes that the Australian government fixing the tax system should proceed to the recommendations in order to develop Australia’s position in the context of global markets.
Reference List
Papandrea, V 2009, ‘Inquiries galore’, Investor Daily. Web.
Thompson, W. D 2010, ‘A Long-term plan for Australian tax reform – the Henry Report and the government’s response’, Keeping good companies, June, pp. 305-308.