A Smarter Tax System for a Stronger, Fairer Future
The case for tax reform is clear and well understood. From the Henry Review to years of analysis by economists, policy experts and civil society organisations, the intellectual groundwork has already been laid. But even the most rigorous policy arguments are not enough on their own.
The challenge now is not diagnosis, but delivery.
Successful reform depends not only on sound policy design, but on timing and the political and fiscal circumstances of government. At this moment, those conditions have aligned.
Australia now has a rare opportunity to deliver meaningful tax reform in this term of government.
There is strong political capital, a clear electoral mandate, growing public appetite for change, an urgent need to address long standing structural challenges, and enough time for reforms to take root before the next election.
The window for reform is open, and it must be seized.
This submission from Per Capita to the Economic Reform Roundtable builds on the success of our Community Tax Summit and lays the groundwork for a broader tax reform paper to be released later this year. That forthcoming paper will set out a comprehensive reform agenda aimed at delivering fairness, shared prosperity and long-term sustainability, with proposals focused on wealth distribution, inequality, young people and disadvantaged communities, and the transition to a net zero economy.
This submission introduces a suite of tax reform packages that will be explored in greater detail in Per Capita’s forthcoming tax reform paper. Our proposals
are practical, responsible and in the national interest. They aim to strengthen the foundations of our economy and society.
Our Recommended Reforms:
Per Capita recommends the following tax reform packages to improve productivity and equity. All packages could be made revenue neutral or positive.
- Package 1: Fairer and more consistent taxation of savings
- Package 2: Commonwealth-state agreement to switch stamp duty for land tax
- Package 3: Increase resource rents to fund incentives for new business investment