Personal income tax reform in Australia: The way forward

Published on 01 Jul 06 by "AUSTRALIAN TAX FORUM" JOURNAL ARTICLE

This paper provides a summary overview of the personal income tax–transfer reform debate in Australia. It attempts to employ a balanced approach to examine the main issues and arguments put forward by various schools of thought with regard to tax reform. First, it explores in depth the meaning of tax reform and reaffirms that tax cuts are not necessarily tax reform. Secondly, it presents a brief diagnosis of Australia’s current personal income tax–transfer system. Thirdly, it surveys the tax theoretical literature as a guide to tax policy. Fourthly and finally, it discusses a variety of constraints and options for tax reform in Australia. It also outlines the three-stage approach (micro-simulation, Delphi study and surveying) to be adopted by the authors in their future tax reform studies.

Author profiles

Binh Tran-Nam

Binh is a Professor, School of Taxation & Business Law, UNSW Australia and RMIT Asia Graduate Centre, RMIT University Vietnam, and International Fellow, Tax Administration Research Centre, Exeter University-Institute for Fiscal Studies. - Current at 07 August 2012

More by Binh TRAN-NAM

• Estimating aggregate tax compliance costs: a new approach using a state space model - 01-April-2017
• The impact of recent tax changes on tax complexity and compliance costs: The tax practitioners’ perspective - 01-October-2016
• Tangled up in tape: The continuing tax compliance plight of the small and medium enterprise business sector - 01-May-2014
• Personal taxpayer compliance costs: Recent evidence from Australia - 01-April-2014
• How close are taxable income and accounting profit? An empirical study of large Australian companies - 01-September-2013
• A comparative analysis of tax advisers’ perception of small business tax law complexity: United States, Australia and New Zealand - 01-December-2012
• The mining withholding tax under Division 11C of the Income Tax Assessment Act 1936: It may be simple but is it equitable? - 01-February-2012
• Tax policy simplification: An evaluation of the proposal for a standard deduction for work related expenses - 01-December-2011
• Ranking of Tax Journals – A Peer Perception Study - 01-June-2011
• Managing tax system complexity: Building bridges through pre-filled tax returns - 01-July-2010
• Ranking of Tax Journals – The Way Forward - 01-October-2009
• Effective marginal tax rates and work disincentives - 01-July-2007
• Towards systemic reform of the Australian personal income tax - 01-April-2007
• Tax Compliance Research: an economic perspective - 01-December-2003
• The impact of Cedric Sandford on the Discipline of Tax Compliance Costs - 01-October-2002
• Estimating the Transitional Compliance Costs of the GST in Australia: A Case Study Approach - 01-October-2002
• Assessing the potential compliance costs/benefits of the tax value method - 01-January-2002
• The implementation costs of the GST in Australia: concepts, preliminary estimates and implications - 01-September-2000
• Tax compliance costs: research methodology and empirical evidence from Australia - 01-June-2000
• Assessing the revenue and simplification impacts of the Government's tax reform - 01-September-1999
• Taxation compliance costs: some recent empirical work and international comparisons - 01-January-1998

Click here to expand/collapse more articles by Binh TRAN-NAM.

Prof Christopher Evans

Chris is a Professor, School of Taxation & Business Law, UNSW Australia, Extraordinary Professor, Department of Taxation, University of Pretoria, and Senior Research Fellow, Tax Law and Policy Research Group, Monash University. - Current at 06 October 2016

More by Chris EVANS

• The impact of recent tax changes on tax complexity and compliance costs: The tax practitioners’ perspective - 01-October-2016
• Taxing personal capital gains in Australia: An alternative way forward - 01-December-2015
• Are your affairs CGT small business concession ready? paper - 28-August-2014
• Tangled up in tape: The continuing tax compliance plight of the small and medium enterprise business sector - 01-May-2014
• Personal taxpayer compliance costs: Recent evidence from Australia - 01-April-2014
• An evaluation of the contribution of Justice Hill to the provisions for the taxing of capital gains in Australia - 01-June-2013
• Quenching a thirst or drinking to excess? Utilising the CGT small business concessions to maximum effect paper - 23-May-2013
• Foreigners don't vote: the removal of the CGT discount for non-residents. - 07-May-2013
• The rise and rise of tax compliance costs for the small business sector in Australia - 01-August-2012
• Tax reform and ‘rough justice’: Is it time for simplicity to shine? - 01-April-2012
• Tax policy simplification: An evaluation of the proposal for a standard deduction for work related expenses - 01-December-2011
• Managing tax system complexity: Building bridges through pre-filled tax returns - 01-July-2010
• Tax reviews in Australia : before and after Henry. - 08-October-2009
• Living with capital gains (and losses): topical issues paper - 14-August-2009
• Yearning for earnout certainty - 01-June-2008
• Effective marginal tax rates and work disincentives - 01-July-2007
• Towards systemic reform of the Australian personal income tax - 01-April-2007
• Alive and thriving – the revised regime for CGT small business concessions - 01-April-2007
• CGT small business changes from the budget paper - 15-March-2007
• CGT - Mature Adult or Unruly Adolescent? - 01-April-2005
• CGT - mature adult or unruly adolescent? paper - 17-March-2005
• Taxing personal capital gains in Australia: causes of complexity and proposals for reform - 01-July-2004
• A CGT Survival Guide seminar paper - 15-June-2004
• Cedric Sandford (1924-2004) - Gentleman and Scholar - 01-April-2004
• In with the new, out with the old? - 01-May-2003
• The impact of Cedric Sandford on the Discipline of Tax Compliance Costs - 01-October-2002
• Continuous CGT Planning - 24-May-2002
• Taxing Capital Gains: One Step Forwards or Two Steps Back? - 01-January-2002
• Assessing the potential compliance costs/benefits of the tax value method - 01-January-2002
• Small Business CGT Concessions - A Little Ray of Sunshine - 01-August-2001
• CGT Small Business Concessions / Discount - 03-May-2001
• Getting the best from the CGT concessions - 15-February-2001
• Capital Gains Tax - "Choosing the Right Course" - 21-October-2000
• CGT After Ralph- The New Regime - 01-June-2000
• The new regime: CGT after Ralph - 01-June-2000
• Tax compliance costs: research methodology and empirical evidence from Australia - 01-June-2000
• The CGT implications of Ralph - 28-February-2000
• The CGT implications of Ralph - 15-February-2000
• CGT after Ralph - the new regime - 28-January-2000
• CGT after Ralph- the new regime- Indicative solutions to the case study - 28-January-2000
• Small Business Roll-overs and Exceptions - 16-July-1999
• Small business rollovers and exemptions - 16-July-1999
• CGT the case study way: creative rollovers - 24-March-1999
• The Australian capital gains tax: rationale, review and reform - 01-July-1998
• Rolling the dice with CGT - 29-May-1998
• Rolling the dice with CGT - 29-May-1998
• CGT update including TLIP - 15-May-1998
• CGT update including TLIP - 15-May-1998
• Taxation compliance costs: some recent empirical work and international comparisons - 01-January-1998
• Small business CGT roll-over relief: is the packaging of qualifying conditions a gangrene-inducing tourniquet or a necessary bandage? - 01-October-1997
• Compliance costs and taxation impact statements - 01-January-1997
• Tax in review: rollover relief! - 01-June-1996

Click here to expand/collapse more articles by Chris EVANS.

Paul Drum CTA

Paul is Senior Tax Counsel at CPA Australia. - Current at 14 June 2017

More by Paul DRUM

• System failure - 01-July-2003
• Going public - a new framework for the tax profession? - 01-November-2002
• Effective business structures - 01-September-2001
• Keeping time - 01-May-2001
• The new regime - 01-December-2000
• Eye of the storm - 01-November-2000
• The eye of the storm - an Australian tax reform stocktake - 01-October-2000
• Contractors beware: new income alienation bill introduced - 01-June-2000
• GST: get ready, set... - 01-April-2000
• Trusts: changing the rules - 01-November-1998
• Small business and retirement planning: using Division 17B - 01-October-1998
• Tax planning with companies: taking care - 01-April-1998

Click here to expand/collapse more articles by Paul DRUM.

Paul Drum CTA

Paul is Senior Tax Counsel at CPA Australia. - Current at 14 June 2017

More by Brian ANDREW

• Effective marginal tax rates and work disincentives - 01-July-2007
• Towards systemic reform of the Australian personal income tax - 01-April-2007
• Some implications of different Asia-Pacific tax regimes - 01-December-1999

Click here to expand/collapse more articles by Brian ANDREW.

Garry Addison

Garry is Senior Tax Adviser with CPA Australia. - Current at 23 September 2013

More by Garry ADDISON

• Forward planning - 01-March-2003
• A closer inspection - 01-August-2002
• Attack on alienation - 01-September-2001

Click here to expand/collapse more articles by Garry ADDISON.