Download This PaperCOVID-19 Has Exposed the Weaknesses in the Australian Tax System: Tax Reform Will Be Required for Recovery
21 Pages Posted: 6 Aug 2020
Date Written: August 1, 2020
Abstract
The economic shock and government response to COVID-19 highlight weaknesses in Australia’s tax system. COVID-19 puts pressure on a system under strain from long-term structural forces and the tax-free and tax-reduced status of certain sources of income. Returning to a sound structural budget position cannot be accomplished through passive action that relies on ‘natural’ revenue growth from current tax sources. Discussions should focus on comprehensive reform. Reducing reliance on income (particularly labour) taxes and applying a more equal tax treatment to different individuals and income sources over time are priorities which will support improved well-being and labour market activity.
Keywords: COVID-19; Tax reform
JEL Classification: H20, H21, H24, J08
Suggested Citation: Suggested Citation
Tristram Sainsbury (Contact Author)
Australian National University (ANU) - Crawford School of Public Policy ( email )
ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia
Robert V. Breunig
Australian National University (ANU) - Crawford School of Public Policy ( email )
7 Liversidge Street
Lennox Crossing
Canberra, ACT 0200
Australia
61261252148 (Phone)
HOME PAGE: http://https://crawford.anu.edu.au/crawford_people/content/staff/rbreunig.php
