Tax reform: Priorities and prospects

Published on 01 Sep 11 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE

Australia’s Future Tax System (AFTS) Review (the Henry Review) has provided a strategic direction for the future development of the tax and social transfer systems. This article considers the priorities and prospects for further tax reform in the coming few years. The author discusses previous tax reform processes in Australia, tax analysis, key drivers and their reform implications, and recent and current trends in tax reform overseas.

The article then examines Australia’s existing tax circumstances and strategies, constraints, especially political, on medium-term reform, and medium-term priorities and prospects for tax reform. Several reform possibilities are then examined, including tax on mainstream savings, retirement savings and income, land and land transfers, alcohol taxation, road pricing and funding, financial services, and achieving a more neutral business tax base.

The article then discusses the major structural tax reform proposals of the AFTS Review, and concludes with observations on the tax reform process.

Author profile

Greg Smith

Greg is an Adjunct Professor at the Australian Catholic University and a Senior Fellow at the Melbourne Law School. He is also a member of the Commonwealth Grants Commission, CEDA Council on Economic Policy, and the Government's Specialist Reference Group on the Taxation of Multinational Enterprises in Australia. He was formerly a head of the Federal Treasury Revenue and Budget Groups, and a member of the 'Henry' Future Tax System Review panel. Greg has recently been appointed Chair of the Grants Commission. - Current at 14 August 2014

More by Greg SMITH

• The economics of tax reform – Are we taxed too little or too much? paper - 23-October-2014
• Henry Report - Implications for future tax reform paper - 16-January-2014
• Tax reform: After the Henry Review paper - 03-June-2010
• Federal and State tax reform - Is there a future for State and Territory taxes paper? - 05-August-2009

Click here to expand/collapse more articles by Greg SMITH.