Modernising Australia's tax system
The need for substantive and strategic tax reform is an issue of increasing importance. Escalating global competition, an ageing population and Australia’s weakening terms of trade are eroding productivity and living standards. A competitive tax system is critical to meeting these challenges and capturing opportunities.
In addition, an assessment of Australia’s existing taxes against ‘good’ tax policy principles highlight that few are efficient, simple, transparent and equitable. This reliance on inefficient taxes is holding back the economy and national productivity. It is not addressing Australia’s economic challenges nor meeting the market opportunities.
Improving the structure of the tax system by replacing inefficient taxes with a suite of efficient taxes will assist with streamlining administration, restore the integrity of the tax system, reduce its complexity and business compliance costs, and drive additional economic growth.
The upcoming Commonwealth Government tax review provides an opportunity to reinvigorate the debate in light of pressing needs and the Government’s recent announcement of their intention to deal with the inefficient legacy issues of Australia’s tax system.
A tax system should be efficient, equitable, simple, competitive, and stable, and ensure adequate revenues are collected in order to meet the needs and expectations of the community. This report seeks to bridge the gap between the recognised need for tax reform and the actual commitment to change by showing that Australia would be better off with a better taxes.
Download the report below.