Australia Needs Tax Reform
August 10, 2015 Taxation in Australia
CANBERRA – Australia needs to reform taxes and decrease its reliance on tax collections from the richest taxpayers.
In a statement made in a local newspaper on August 10th the Treasurer of Australia Joe Hockey called for the government to widen the national tax base, as a means to ensure that the country has a “…tax system that doesn’t or limit our effort”.
The Treasurer noted that approximately half of all the revenues from personal income taxes collected in Australia comes from the top 10 percent of earners in the country, however, these top 10 percent of earners are increasingly mobile, placing the government’s revenues at an “unsustainable risk”.
As a means of addressing the over reliance on personal income tax, he called on the government to reform taxes to lower the marginal taxes faced by workers, and to overhaul inefficient taxes.
The call to reduce personal taxes will soon be discussed at the National Reform Summit, with discussions to be held regarding a proposal to lower income taxes to a top marginal rate of 35 percent and to slash corporate income tax to 20 percent.
Photo By: Martin Howard