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The AFR View

Australia must switch to the right tax mix

Australia’s complex and distorting tax system is a mess because it lacks a first tax principles approach to raising revenue as simply and efficiently as possible, and at the least cost to the economy.

The Howard government’s incentive-sharpening GST tax package introduced in 2000 was Australia’s last substantial and enduring productivity-enhancing policy reform.

Paul Keating had tried to get up a broad-based consumption tax in 1985 to help fund lower income tax, but was overruled by the ACTU.

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The Australian Financial Review’s succinct take on the principles at stake in major domestic and global stories – and what policy makers should do about them.

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    Original URL: https://www.afr.com/policy/economy/australia-must-switch-to-the-right-tax-mix-20220516-p5altk