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Tuesday’s federal budget was another missed opportunity to fix the most egregious aspect of the nation’s tax system: the heavy reliance on taxing workers via personal income taxes.
The budget’s changes to negative gearing and capital gains taxes will raise billions in additional tax revenue over time. But without offsetting changes to personal income tax rates and/or thresholds, it amounted to another ‘tax grab’ by the government.
The problem with Australia’s over-reliance on taxing workers via personal income taxes is hiding in plain sight.
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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.