Some of Australia’s top economic and tax brains — including former Treasury secretary Ken Henry — have gathered at a roundtable convened by independent MP Allegra Spender to discuss tax reform.
Spender’s expert roundtable, convened in one of the federal parliament’s committee rooms, also featured Professor Robert Breunig from the Australian National University, Robert Carling from the Centre for Independent Studies and Michelle de Niese from the Corporate Tax Association. Treasurer Jim Chalmers and shadow treasurer Angus Taylor sent representatives.
Topics discussed at the mainly in-camera session included the key economic challenges Australia faced and how those challenges should be addressed by tax reform.
The forum will lead to the development of a tax reform green paper. This will form the basis for discussions at future roundtables with the eventual goal of publishing a white paper by the middle of 2024 offering a consensus view on reform options.
Spender’s opening address said Australia was yet to properly grapple with the challenge of reforming the tax system to fund future services.
“As the population ages, we will experience a significant contraction in the number of those who make tax payments but a significant expansion in those who receive them,” Spender said. “As we do, improving prosperity will become ever more difficult.
“Without change, we will see decay in some revenue sources — such as fuel tax and GST, which currently account for around 20% of total revenue — while the only source of revenue growth will be income tax through the effects of bracket creep.”
Spender said that neither major party was embarking on a major reform agenda. The federal election last year featured two major political parties “reassure people they won’t really touch it”.
She said community support was fundamental to ensuring any proposed tax reforms were understood.
“And you need support across the parliament,” Spender said. “Serious tax reform is much harder without multi-partisan commitment to change.
“This doesn’t mean agreement on every point but an overall commitment to the reform process, with each playing a constructive role in advocating with their constituencies and advocating for the necessary changes.
“At the very least, there is the opportunity for other parties not to stand in the way of those advocating for real reform.”
Tax Institute of Australia representatives Clare Mazzetti and Scott Treatt provided the roundtable discussion with technical support.
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