The issue of simplification of taxation law has been an important part of the fiscal agenda in Australia since the establishment of the Tax Law Improvement Project (TLIP) back in December 1993. The TLIP, which aimed to simplify income tax legislation embodied in the Income Tax Assessment Act 1936 (Cth) through the use of shorter and clearer sentences and the use of plain English, was conceived in response to widespread criticism that the income tax legislation was difficult to read and understand.
It has been contended that this inherent difficulty in understanding income tax legislation due to the length and complexity of the legislation led to increased costs, both for the taxpayer in the form of increased tax compliance costs, and for the Federal Government in the form of increased tax administration costs. The TLIP's role was to rewrite the primary income tax legislation which culminated in the development of the Income Tax Assessment Act 1997 (Cth).