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  • Essay / Rationalization and rationalization of tax - 988

    In Australia, most taxpayers now have investments in stocks other than goods and services, as in previous years. Due to globalization and e-commerce, more complex tax rules have developed to deal with new things or situations. There have been many reforms to Australia's tax system throughout history to improve its tax system. Achieving policy objectives requires more complex outcomes. Sometimes tax policy considerations cross the line; for example, the objective of tax policy is to provide social security which requires tax provisions. More complex financial operating arrangements in Australia have developed this sophisticated tax system. The main objective of policy over the previous two decades was to eliminate poverty in Australia. The complexity of the transfer system lies in the payment structure, who is eligible for the benefit and what income will be considered taxable or non-taxable due to complex rules and regulations. Small changes to policy can result in an inherently more complex and inconsistent system. The new transfer system does not necessarily have to be more complex than the previous one. A small change on the part of the government can increase the complexity of the system following this small change. Incremental changes in the system are more accepted because they do not disrupt the other system. There is a compromise