This episode examines the need for tax reform in Australia and reviews various options for overhauling the country's tax system. Simon Cowan joins host Gene Tunny from the Centre for Independent Studies to discuss issues like bracket creep, the tax system's progressivity, mining royalties, and negative gearing. They also analyse the political strategies around the stage three tax cuts and how expenditure reform, including controlling the growth of programs like the NDIS, is needed to reduce the tax burden. Cowan argues the tax system has become too reliant on income tax and higher-income individuals.
This episode examines the need for tax reform in Australia and reviews various options for overhauling the country's tax system. Simon Cowan joins host Gene Tunny from the Centre for Independent Studies to discuss issues like bracket creep, the tax system's progressivity, mining royalties, and negative gearing. They also analyse the political strategies around the stage three tax cuts and how expenditure reform, including controlling the growth of programs like the NDIS, is needed to reduce the tax burden. Cowan argues the tax system has become too reliant on income tax and higher-income individuals.
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Simon Cowan is Research Director at the CIS. He is a leading commentator on policy and politics, with a regular column in the Canberra Times newspaper, frequent interviews on Sky and the ABC, and multiple appearances before parliamentary committees discussing the budget, citizenship, taxation and health policy. He has written extensively on government spending and fiscal policy, with a specific focus on welfare and superannuation policy. He earlier work focused on government industry policy, defence and regulation.
1. Australia's tax system has become overly reliant on income tax and needs to diversify its revenue sources.
2. Bracket creep is a real problem that has not been adequately addressed, particularly for higher-income earners.
3. Both major political parties have taken cynical, short-term positions on tax reforms that are not in the community's best interests.
4. Expenditure reform, including controlling the growth of programs like the NDIS, is needed to reduce the tax burden.
5. Lowering company taxes could boost business investment and economic growth in Australia.
Simon’s article on the stage 3 tax cuts:
AFR article (pay-walled) “Royalty hike and IR overhaul threaten critical mineral pipeline: BHP”:
QLD Government announcement on coal royalty hike:
https://statements.qld.gov.au/statements/95467
Grattan Institute’s view on tax reform:
https://grattan.edu.au/news/thats-not-tax-reform-this-would-be-tax-reform/
Thanks to Obsidian Productions for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au.
Full transcripts are available a few days after the episode is first published at www.economicsexplored.com.