How Jim Chalmers should tackle reform

The blueprint for how to fix Australia’s tax system was spelled out 15 years ago by the Henry Tax Review. Unfortunately, both sides of government ignored its recommendations.

Fast forward to today, and the federal budget is facing a decade of budget deficits amid the unwinding of commodity prices, the ageing population, and increasing spending on aged care, the NDIS, defence, the “net zero” transition, and other areas.

At least federal Treasurer Jim Chalmers has acknowledged the predicament, using a National Press Club speech on Wednesday to champion “bold” tax reform to make the budget sustainable and improve productivity.

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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.