The Henry Review argued changes to negative gearing would need to be offset by increasing housing supply, but this aspect is missing from the Labor proposal.
Australian Treasurer Scott Morrison’s recent comment was easy to misinterpret but ultimately correct.
AAP Image/Mick Tsikas
It would be easy to misinterpret a recent comment by federal Treasurer Scott Morrison as meaning that states and territories generate 90% of all revenue collected in Australia. That’s not the case.
The Rudd government’s changes to fringe benefit tax concessions on cars is good environmental policy, but bad news for the manufacturing sector.
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The decision to terminate the statutory formula method under the fringe benefits tax regime will have significant ramifications on the car industry, the local car manufacturing industry and employment…
This year’s federal budget failed to provide any hint of meaningful tax reform for businesses and individuals.
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Budget night has come and gone again. For those sad folks (I count myself among them) who follow tax and fiscal policy obsessively, it’s the most glamorous night of the year. But the budget does matter…
Despite the notorious unreliability of forward estimates, the government has included projections for a 10-year period in this year’s federal budget.
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When assessing some of the assumptions underpinning Wayne Swan’s 2013 federal budget, two things spring to mind: the Henry Tax Review and the notorious inaccuracy of forward estimates. History shows it…
The kind of tax reform being called for by groups such as the Business Council of Australia can only come about if politics and vested interests are put aside.
There can be no dispute with last week’s call from the Business Council of Australia for meaningful tax reform. This is a larger issue than both the looming budget and September’s election. However, it…
The Gillard government’s changes to the tax treatment of superannuation make for a more complex system, rather than a more equitable one.
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Today, the Australian government announced additional taxation of high income funds in the decumulation or retirement stage of investments in superannuation. Arguably, the changes add more to complexity…
The mining tax is fraught with significant design issues. But can it be fixed?
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The Commonwealth government’s mining tax, the minerals resource rent tax (MRRT), has been a continuing source of controversy. It is easy to point to its significant problems, but a considerable challenge…
The abolition of royalties, as well as fluctuations in iron ore and coal prices, have had an effect on the mining tax’s capacity to generate revenue.
AAP
Why hasn’t the Minerals Resources Rent Tax (MRRT) produced significant revenue? The answer lies in a combination of basic features of the MRRT design, and the recent fluctuation in prices of iron ore and…
The case for significant, productivity-enhancing tax reform has been made by the Henry Review - but the challenge will be for meaningful reform not to swallowed by pre-election noise.
AAP
Reform of Australia’s taxation system has to be high on the agenda to raise national productivity, for greater simplicity, and to improve equity. However, because of the magnitude of the challenges to…
Billionaire US investor Warren Buffett pays less tax than his secretary - but Australia has its own anomalies.
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In his 2012 State of the Union address US President Barack Obama lamented the fact that billionaire Warren Buffett faces a lower tax rate on his income than his secretary. The situation arises because…
Despite the lack of any substantial reform, last week was quite a big week for Australia’s tax system.
Last week was quite a big week in tax, although when the dust had settled it was not clear what — if anything — had really happened. First, the Treasurer announced in the Mid Year Economic and Fiscal Outlook…
The GST is off-limits for both political parties, but a restructure could result in an increase in national productivity and incomes.
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With appropriate investment in design and explanation, a larger GST reform package could be one of the most effective and easiest options to help reverse Australia’s lagging productivity growth. Changes…
The lowering of the tax-free threshold on online purchases is stomping on the long tail of retail.
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Will the long tail of the internet be docked by the fastidious imposition of GST to online purchases? Australian retailers have been lobbying the federal government to up the ante on online GST by lowering…
The Coalition has ruled out increasing GST, despite calls from former Prime Minister John Howard for GST to apply to food. But could a policy change be in the wings?
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There is almost unanimous agreement among mainstream economists, tax experts, Treasury, business and even politicians (albeit very quietly) that the Goods and Services Tax will have to be increased and…
Former politician and economist John Hewson speaks to ANU’s Crawford School’s Bruce Chapman and Daniel Connell.
Welcome to the latest in our In Conversation series, between former politician and economist Dr John Hewson, Australian National University (ANU) Crawford School Director of Policy Impact Professor Bruce…
Improving the transparency and evaluation of major infrastructure projects is one way to increase productivity.
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Productivity growth results in more valued output per unit of production input, or the same output for fewer inputs. Growth of productivity requires changes involving the adoption of new technology, better…
Flat earth approach: the tax burden on housing accounts for much of the financing cost of a new home.
AAP
A fundamental truism of economics is that if you tax something, you get less of it. Tax is thus a good place to start in seeking to explain why Australia’s housing market is chronically under-supplied…
The tax transfer system does not treat all families equally.
Sean Dreilinger
Most of the reforms proposed by the Henry Tax Review appear to have died a quiet death. In his recent article on inequality in The Monthly, Treasurer Wayne Swan does not mention the Henry Review at all…
Cutting company tax rates reflects Labor’s continuing acceptance of a neoliberal agenda when it comes to tax reform.
AAP
The introduction of the Minerals Resource Rent Tax into federal parliament marks the next step in Labor’s neoliberal tax reform agenda. Another example, the carbon tax, is poised to pass through the Senate…