Products – The Centre for Independent Studies

Budget 2019: Why the long-term tax cuts should be fast-tracked

John Humphreys
04 April 2019 | PP19
Budget 2019: Why the long-term tax cuts  should be fast-tracked

The centrepiece of the 2019/20 budget was a proposed doubling of the income tax cuts that were legislated last year. Both the short-run LMITO change and the long-run tax cuts will reduce tax, but the two approaches are fundamentally different.

These differences are important, but they are hidden by the superficial nature of the tax debate in Australia. To differentiate between superficial tax changes and meaningful tax reform, it is necessary to understand the link between taxes, incentives, and behaviour.

We have used a dynamic tax model that factors in behavioural changes. This model applies an elasticity of taxable income to estimate the direct link between tax rates and the tax base, which allows for more accurate estimates of revenue changes, the efficiency cost (deadweight loss) from tax, economic output, and consumer wellbeing.

Latest Publications

Resisting China’s Economic Coercion: Why America should support Australia
Alan Dupont
08 April 2021 | PP38

China’s unprecedented trade campaign against Australia is a case study in economic coercion for geopolitical purposes. Its aim is twofold: to bend Canberra to Beijing’s will and to decouple it from the US alliance system. Australia has withstood such pressure to date, but needs American support. This paper argues that the Biden Administration should lead in helping Australia and other…

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Australians’ Attitudes to Social Media: Connection or Curse?
Monica Wilkie
29 March 2021 | PP37

Social media appears in the news cycle, almost daily, and the majority of the coverage is negative. Politicians from all sides, and bureaucratic agencies have been warning about the apparent danger social media pose to journalism, democracy, business, and civil society. But Australians are far more optimistic about social media than the alarmist narrative. The CIS commissioned YouGov to poll…

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The Need for U.S.-Australia Leadership to Counter China across the Indo-Pacific
Erik M. Jacobs
25 March 2021 | PP36

China’s recent actions – its trade coercion against Australia, border clash with India, maritime harassment of Japan, and military expansionism in the South China Sea – have compelled the U.S. and Australia to leverage their decades-long defence alliance and intelligence ties to deepen existing relationships and build new partnerships in the face of an aggressive China bent on asserting itself…

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The Looming Iceberg: Australia’s post-pandemic debt risk
Robert Carling
28 January 2021 | PP35

After many years with low public debt, Australia is seeing a much higher debt burden as a result of the coronavirus pandemic. In the years ahead, according to recent budget estimates, it will reach close to $2 trillion in aggregate at the Commonwealth and state/territory levels of government. This poses a risk to economic growth in the longer term and…

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Worlds Apart: Remote Indigenous disadvantage in the context of wider Australia
Jacinta Nampijinpa Price
25 January 2021 | PP34

Remote and very remote Indigenous communities have become victims of a ‘wicked problem’. A combination of high impact factors that, when pooled together, are having devastating effects on communities. Education and employment rates in remote and very remote Indigenous communities put them on par with countries such Afghanistan, a nation devastated by over 19 years of war. Poor health outcomes…

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