David Montani

Each of us likes to think we have the silver bullet solution to the pressing issues of the day – from the environment to superannuation to tax. However political reality most often means good policy ideas get thrown into the too-hard basket in the face of pressure from lobby groups and vested interests.

For too long, politicians have been allowed to tiptoe around the issue of tax reform without achieving anything meaningful.

Transfer duty, or stamp duty, as it was known until 2008, is one of the most inefficient, distortive and poorly targeted taxes in Australia.

It has been almost seven years since the GFC, and the subsequent drop in tax revenue has challenged two federal governments here in Australia.

Whispers of tax reform are once again being heard, with the white paper expected later this year causing a flurry of anticipation over what changes might be forthcoming. Will they be innovative, exciting even? Or will they fail to impress?

A low-key tax ruling will have dramatic implications for thousands of small business owners.