The Australian Salary Packaging Industry Association (ASPIA) welcomes the opportunity to respond to the Re:think Tax Discussion Paper and to have input into the discussion the Government has initiated about the opportunities for reform of the Australian taxation system.

ASPIA was formed in 2007 to provide a forum for discussing the overarching legislative and taxation issues affecting organisations within the growing outsourced salary packaging industry and their corporate and individual employee clients.

Since then the Association has evolved to more broadly represent and promote the industry, particularly engaging with Government and regulators. It also performs an educative role, striving to build an understanding of the industry by publishing information about its impact and economic importance.

Furthermore the Association plays a role in setting and maintaining the standards of the industry, establishing minimum guidelines in relation to service and inter-provider engagement, as well as providing a complaints handling facility for member firms’ customers.

ASPIA currently represents more than 30 organisations involved in the salary packaging industry in Australia, and together they employ more than 1,500 people. The Association is run by a small, voluntary Board, who hold senior positions in companies that operate in the industry.

Our members service more than 6,200 organisations, ranging from corporations and government departments, to various Not-For-Profit (NFP) organisations, including Public Benevolent Institutions (PBIs), Health Promotion Charities and Public Hospitals. More than 1.5 million employees are eligible for benefits, with an estimated 50% of eligible employees taking advantage of their entitlement. ASPIA’s members administer at least $300 million in benefits each month.

The Re:think Tax Discussion Paper sets out to create a better tax system, one that delivers taxes which are lower, simpler and fairer. It needs to encourage higher economic growth and living standards, improve international competitiveness and be responsive to a changing economy and new opportunities.

The comments we provide support those tenets absolutely. We believe that this review is a timely opportunity to address some inequities that exist in the current system, and to make it simpler and more easily administered, at the same time as providing the framework to facilitate the next stage of growth in the Australian economy.

We welcome the opportunity to elaborate on any of our views and should you need further information, please contact Leigh Penberthy, Chairman by emailing leigh.penberthy@aspia.com.au or by calling 1300 766 064.

Australian Salary Packaging Industry Association (ASPIA)

PO BOX 7622

MELBOURNE VIC 3004

http://www.aspia.com.au

Please find the full discussion paper here.