OECD calls for widespread tax reform

The OECD has released its 2021 Australian Economic Survey, which calls for widespread tax reforms to reduce the overreliance on personal income taxes:

Tax reform is needed. Australia’s heavy reliance on taxation of personal incomes adds to the vulnerability of public finances to an ageing population. Fortunately, there is a clear path for tax reforms that will provide a more sustainable tax base, enhance economic growth and promote other government priorities like improving housing affordability and reversing the trend toward rising income and intergenerational inequality common to many countries. The authorities should increase the Goods and Services Tax rate or broaden the base, offsetting any regressive effects through additional personal income tax cuts (especially for low and middle-income workers), reducing private pension tax breaks and reducing the capital gains tax discount. In addition, more state governments should replace stamp duty with a well-designed recurrent land tax…

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