Economics Explored

How Good Tax Policy Gets Made and How It Doesn't: GST vs Capital Gains Tax in Australia

Episode Summary

Most tax debates focus on the what: rates, base, and who pays. This episode is about the how: the process by which economic policy gets made. Drawing on his time in the Australian Treasury, host Gene Tunny argues that the latest changes to capital gains tax and negative gearing reflect a breakdown in good policymaking. They were announced on budget night without the consultation, published modelling, or public mandate that major reform deserves. As a contrast, Gene revisits the Howard government's GST process of the late 1990s: a detailed white paper, published modelling, and a policy taken to an election for a fresh mandate. With clips from a recent Death and Taxes livestream featuring co-host John Humphreys and guest Derek Francis, the episode asks a question that reaches well beyond Australia: what does good policy process look like, and what does it cost us when governments skip it?

Episode Notes

Most tax debates focus on the what: rates, base, and who pays. This episode is about the how: the process by which economic policy gets made. Drawing on his time in the Australian Treasury, host Gene Tunny argues that the latest changes to capital gains tax and negative gearing reflect a breakdown in good policymaking. They were announced on budget night without the consultation, published modelling, or public mandate that major reform deserves. As a contrast, Gene revisits the Howard government's GST process of the late 1990s: a detailed white paper, published modelling, and a policy taken to an election for a fresh mandate. With clips from a recent Death and Taxes livestream featuring co-host John Humphreys and guest Derek Francis, the episode asks a question that reaches well beyond Australia: what does good policy process look like, and what does it cost us when governments skip it?

Gene would love to hear your thoughts on this episode. You can email him via contact@economicsexplored.com

What You’ll Learn from This Episode

Timestamps

Links relevant to the conversation

Australian Taxpayers’ Alliance livestream, Thursday 25 June, “Labor's new tax disaster, with Derek Francis || #47”:

https://www.youtube.com/live/vqz_hEVyg70?si=F8DS2GxdUz_-PkmJ

Previous episode on capital gains tax, “Taxing Capital More in a Productivity Slump? Perverse Policy in Australia”:

https://economics-explained.simplecast.com/episodes/taxing-capital-more-in-a-productivity-slump-perverse-policy-in-australia

Howard Government White Paper on “A New Tax System”:

https://treasury.gov.au/sites/default/files/2019-03/Whitepaper.pdf

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