Tax

The aim of the research at the CIS is to work towards an efficient and predictable tax system that does not impose too great a burden on the economy.

Publications

Jumpstart Productivity: New modelling pinpoints better tax cut program
John Humphreys
15 October 2019 | PP24

Treasury modelling of the government’s tax changes make the strange assumption of no behavioural change, leading them to ignore economic efficiency and overestimate the revenue implications. Proper modelling provides crucial further information: The Low-Middle Income Tax Offset (LMITO) does nothing to improve economic efficiency and…

Millennials and Super: the case for voluntary superannuation
Simon Cowan
28 May 2019 | PP20

Superannuation is not a good deal for everyone. As a result of house prices increases, it has become much harder to save for a deposit and, as a result, homeownership percentages among younger workers have fallen. Superannuation, particularly future increases in the guarantee rate, is…

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

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…

Myth vs Reality: The case against increasing Capital Gains Tax
Robert Carling
05 March 2019 | PP18

Australia’s capital gains tax (CGT) policy has been largely settled for almost 20 years. However, it has come under renewed scrutiny as a result of the Australian Labor Party’s federal election platform proposal to halve the 50% CGT discount and thereby effectively increase the tax…

Dividend Franking Credit Refunds: principle vs revenue
Robert Carling
12 February 2019 | PP16

Under Australia’s dividend imputation system of taxation, since 2000 taxpayers whose franking credits exceed their tax liability have been paid a cash refund of the excess. The Labor opposition’s policy is to continue with the imputation system but to abolish cash refunds of excess franking…

Media & Commentary

It's time to storm the gates on age pension reform
Simon Cowan
09 November 2019 | CANBERRA TIMES

There’s always been something of an irony in the invocation of the phrase “an Englishman’s home is his castle” by those opposed to changing the tax and pension arrangements around…

Truth is, not all tax cuts are created equal
John Humphreys
27 October 2019 | The Canberra Times

TREASURY’S flawed tax model has caused the government to underestimate the benefits and overestimate the budget cost of their long-term tax reforms. This has influenced the government to pursue the…

Canberra needs to discover ‘secret’ tax cuts bonus
John Humphreys
25 October 2019 | The Australian

Australia’s tax debate needs a reset. The government’s recent tax reform is to be commended but it was based on flawed Treasury modelling that ignored productivity and over-estimated the budget…

How smarter tax cuts will boost the budget
John Humphreys
24 October 2019 | Spectator

Treasury’s flawed tax model has led to the government’s structural reforms being estimated to cost much more than they actually will, and scheduled much later than they should be. In Jumpstart…

Come on Treasury, time doesn’t stand still
John Humphreys
18 October 2019 | Ideas@TheCentre

Treasury’s flawed tax model has led to the government’s structural reforms being estimated to cost much more than they actually will, and scheduled much later than they should be. In…