Reforming Personal Income and Consumption Taxes in Australia

The past five years have seen the introduction of major tax reforms in Australia. A 10% GST has been introduced as has changes to the administration of excise duties. The Personal Income Tax base and rates have also been significantly reformed along with the administration of this tax and its interaction with the social welfare system. Taxes imposed at the State level of government have also been reformed with States repealing a number of taxes in return for a share of the revenue from the central government’s GST. In the future, pressure is likely to grow for further personal income tax reforms and for the repeal of a number of State taxes, possibly funded by an increase in the rate of GST.