tax

We Cannot Tax Our Way Out Of Debt
24 April 2020

We Cannot Tax Our Way Out Of Debt

These days probably the best way to guarantee the federal Coalition government won’t do something is to have Malcolm Turnbull suggest it. So when Turnbull on the publicity tour for his book raised the prospect of further tax increases on superannuation and investment income, he might well have done enough to ensure they are unlikely to happen. And nor should they. Jobs
Read
Sydney Motorists Do Not Want A Congestion Tax
15 October 2019

Sydney Motorists Do Not Want A Congestion Tax

If there were fewer poor people on the roads, rich people could get to work more easily and everyone would be better off. This, in a nutshell, is the argument for the congestion tax, a charge on drivers of vehicles seeking to enter and exit the city during morning and evening peak times. The idea has returned to public debate
Read
Labor’s Franking Credits Plan Adds Up To A Nana Tax
30 January 2019

Labor’s Franking Credits Plan Adds Up To A Nana Tax

Australia’s dividend taxation regime is a complex solution to a simple problem. It is well known and understood that double taxation of corporate income gives rise to economic distortions. The simple solution to that problem would be to make corporate income tax-free in the hands of shareholders. But no. So a somewhat complicated system was introduced that taxed dividend income
Read
Submission to the Economics Legislation Committee inquiry into the Treasury Laws Amendment (Making Sure Every State and Territory Gets Their Fair Share of GST) Bill 2018
24 October 2018

Submission to the Economics Legislation Committee inquiry into the Treasury Laws Amendment (Making Sure Every State and Territory Gets Their Fair Share of GST) Bill 2018

The IPA welcomes the opportunity to provide the attached document, Time to End GST Redistribution: 2018 Update, as a submission to the inquiry into the Treasury Laws Amendment (Making Sure Every State and Territory Gets Their Fair Share of GST) Bill 2018. The report outlines the theoretical and practical flaws in cross-jurisdictional redistribution of taxation revenue (or horizontal fiscal equalization),
Read
Current Australian Tax Cut Debate A Tale Of Two Populisms
3 July 2018

Current Australian Tax Cut Debate A Tale Of Two Populisms

Since 2007-8 – the last time Australia enjoyed a budget surplus and zero net public debt – government spending has increased by 78 per cent. Spending now makes up 25.4 per cent of GDP. By contrast, government revenue has increased by 61 per cent and makes up 24.9 per cent of GDP. For those of us who thought John Howard
Read
Half Of Australian Workers Worse Off Under Shorten Company Tax Thought Bubble
28 June 2018

Half Of Australian Workers Worse Off Under Shorten Company Tax Thought Bubble

Free market think tank the Institute of Public Affairs has today released new analysis based on Australian Bureau of Statistics data, which finds that almost half of Australian workers would be worse off under Labor’s plans to increase company taxes. Bill Shorten this week announced he would reverse legislated company tax cuts for businesses between $10-$50 million turnover. The data
Read
Power Policy Prioritises Expensive Green Goals
26 June 2018

Power Policy Prioritises Expensive Green Goals

The key lesson of recent wrangling over energy policy is this: if it sounds like a tax and looks like a tax, then it probably is a tax. The National Energy Guarantee (NEG) is the government’s energy policy centrepiece. It promises to manage the so-called policy “trilemma” of affordability, reliability and emissions reductions in the energy sector. It will do
Read
Tax ‘Cuts’ Are Rises To Pay For Spending
18 May 2018

Tax ‘Cuts’ Are Rises To Pay For Spending

The budget is littered with titbits mostly designed to garner political support. There’s the targeted, low and middle-income tax offsets which will provide relatively small tax cuts for those earning up to $125,000 per year. There’s the proposal to raise the top threshold of the 32.5 per cent tax bracket from $87,000 to $90,000, which will stave off bracket creep for
Read
Five Reasons Labor’s Superannuation Changes Would Damage Australia
26 March 2018

Five Reasons Labor’s Superannuation Changes Would Damage Australia

In a speech to the Chifley Institute last week, Opposition Leader Bill Shorten announced that the Labor Party would introduce further changes to Australia’s compulsory superannuation system.1 The key change is to abolish cash refunds for so-called excess dividend imputation credits. This means any superannuant whose tax liability is negative following the franking of dividend payments from companies would no
Read
Labor’s Superannuation Changes Would Damage Australia
26 March 2018

Labor’s Superannuation Changes Would Damage Australia

Free Market think tank the Institute of Public Affairs has today sent a Parliamentary Research Brief ‘Five Reasons Labor’s Superannuation Changes Would Damage Australia’ to all Federal Parliamentarians. IPA research fellow Daniel Wild said, “All 15 million prospective superannuants, or those who manage their funds, would need to re-assess their investment strategies as a result of Labor’s proposed Super tax
Read