A preliminary study of the initial implications of the Ralph Report recommendations for the real proerty sector.
The real property industry is one that intersects the boundaries of many aspects oftaxation. The changes recommended by the Ralph Report (the Review of BusinessTaxation, A Tax System Redesigned, 1999 chaired by John Ralph AO), have had flow-onconsequences to the real property sector. The Ralph Report itself contained about 280recommendations which were aimed at improving the competitiveness and efficiency ofAustralian Business, reduce compliance costs and enhance the stability of taxationarrangements. This paper will focus on those issues that relate primarily to the realproperty industry sector.Therefore, this research paper examines a number of interrelated areas concerning therecommendations of the "Review of Business Taxation, A Tax System Re-designed" onthe real property industry sector. The interrelated areas which have been selectedincludes the Capital Gains Tax regime, the Simplified Tax System, and AcceleratedDepreciation.The Ralph Report initially gave the appearance that everyone would benefit, however,this was not so. The findings in this paper show the Capital Gains Tax regime to havecreated a more complex tax system, with a different tax treatment of capital gainsaccording to the structure of the ownership of the asset. The Simplified Tax Systemresult for small business was to face higher costs to establish eligibility for the variousconcessions introduced, and the removal of Accelerated Depreciation as a direct trade-offfor the company tax rate reduction did little to enhance new property development.
|Year of publication:||
|Other Persons:||Ming, Y.S. (contributor)|
Pacific Rim Real Estate Society (PRRES)
|Type of publication:||Other|
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