Complexity of the tax transfer system

7.11 There may be circumstances where a person decides not to work as it is simply too complex to determine whether it would be more financially advantageous to work or not.^[9] Olderworkers noted that in a survey of jobseekers aged over 45 years, a large percentage considered the tax transfer system ‘extremely complex’. It stated that to encourage mature age workforce participation, the Australian Government should ‘develop a much less complex tax-transfer system’.^[10]

7.12 Reducing tax system complexity requires systemic and comprehensive reforms, and was a specific focus of the Tax Review.^[11] The Tax Review recommended 16 specific reforms to the personal income tax system.^[12]

7.13 Another way to address complexity in the tax system is through providing information to mature age persons. COTA stressed the value of ‘easy to understand, clear and concise information’, suggesting a free service to provide accurate information based on individual circumstances.^[13] Similarly, the Australian Chamber of Commerce and Industry (ACCI) suggested more ‘promotion of seminars and programs to mature aged [so they can] understand the range of tax benefits available’.^[14] Information about income tax—including income tax calculators—is contained on the Australian Securities and Investments Commission’s ‘Moneysmart’ website and the Australian Taxation Office website.^[15]