Federal Treasurer Wayne Swan has officially closed the October Tax Forum after announcing the government would not conduct inquiries into issues raised by participants.

 

However, Mr Swan pledged the formation of a business tax working group to report back in six months on what reforms should be made to the corporate tax system.

 

Mr Swan announced another review, to be headed by two state treasurers, to investigate how state taxes can be harmonised. The review will be chaired by Queensland’s Treasurer Andrew Fraser and NSW’s Mike Baird.

 

"It will then go on to COAG for agreement and implementation, which of course involves the Prime Minister and the premiers. And I want the first iteration of this plan by the end of 2012," Mr Swan announced at the close of the forum.

 

Mr Swan reiterated the government’s planned reform of personal income tax which will see the threshold lifted from $6,000 to $18,200 to offset the effects of the introduction of the carbon tax on households.

 

"Our first priority in further personal tax reform will be to increase the tax-free threshold further to at least $21,000 and remove the low income tax offset entirely," Mr Swan said.