Treasurer Wayne Sawn, in a development which could hurt those which heavy paychecks, has flagged the possible changes to the current tax system under the 10-year reform agenda. The main changes highlighted have been - increased taxes for the rich and substantial cutbacks to the lucrative superannuation benefits that they presently enjoy.

Describing the new tax system as "simpler" and one that would allow taxpayers to "lodge their returns with just a few clicks of a mouse", Treasurer Swan has confirmed that the changes are necessary and have his support. In his Melbourne keynote speech, Swan was quick to warn that Canberra would soon be one of the first states to receive a major tax system reform, an act which he wanted to take forward even if it required changes to the constitution.

For the new tax system, Swan cited the 15% contribution tax, which means that while an individual earnings $180,000 would receive a concession worth 31.5%, a person earning $80,000 or $90,000 would get a concession worth 24.5% of their contribution.

Ken Henry, Treasury secretary, and his panel will now review the new tax plan and hand in a report on the same around Christmas Eve. The Federal Government is expected to make the report public sometime early next year, right before the Federal election.