The Henry Report and the taxation of work related expenses: principles versus practice
Journal of Finance and Management in Public Services
The Henry Report on the future of the Australian tax system examined many areas of relevance to tax systems in general. One was the tax treatment of employment expenses. The Henry Report recommended that a new test should be introduced to narrow the definition of deductible employment expenses and that this test might be similar to the approach taken in the UK. In the light of the basic principles of the issue, this paper examines the reasons for the recommendation and the extensive experience of the UK arrangements. The situation in New Zealand is also examined as another approach. Finally a possible solution is suggested.
Final version published in Journal of Finance and Management in Public Services, available at http://www.cipfa.org/policy-and-guidance/the-journal-of-finance-and-management-in-public-services
Vol. 11, Issue 2, pp. 46 - 58