State tax reform must come from the commonwealth

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Shadow treasurer, Jim Chalmers, has indicated that state tax reform will be on Labor’s agenda should it win the upcoming federal election:

Chalmers says Labor’s focus will be on working with the states to see whether a consensus could be built around reforming inefficient state taxes such as stamp duty. Chalmers in effect says everything is on the table with the states – except changes to the GST.

This is great to hear. It is incumbent on the federal government to drive the tax reform process, since it controls the money.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.