That government expenditure in Australia has grown apace in recent years is well-known. The growth became gargantuan during the coronavirus pandemic. However, to a less dramatic extent, it was happening before the pandemic — and has continued since it ended.
The deficit budgeted for 2024-25, amounting to over $28 billion ($28,000 million), translates to a willingness to borrow and spend over $1,500 per Australian voter to secure an election victory.
While the focus is usually on income tax paid to the federal government, the reality is that individuals and businesses are constantly paying a wide range of taxes; not only to the federal government but also to state and local governments.
Tax increases are built into Australia’s personal income tax policy by default. In fact, in any year in which the government does not provide tax cuts, pay increases push up (average) tax rates.
Adam Smith, the Scottish philosopher and economist, is one of the most significant figures to have emerged from what came to be known as ‘the Scottish Enlightenment’.
For those on lower incomes, even a small increase in nominal income leads to a larger increase in their overall tax rate.
This paper is a further developed version of the author’s submission to the Treasury consultation on the federal government’s Better Targeted Superannuation Concessions proposal.
There is a wide-ranging agenda of issues to which this paper aims to make a start by examining past, current and projected levels of federal government expenditure and revenue and highlight where the major shifts are occurring.
The so-called ‘Trussonomics’ of Liz Truss’s short-lived and ill-fated premiership were based on an ignorance of the true discipline of economics, and bore little resemblance to the politics of ‘sound money’ on which the British Conservative party has for decades prided itself.
The increase in debt raises economic policy issues of major concern. It is reducing fiscal flexibility and the capacity of governments to respond effectively to future crises. It may also act as a drag on economic growth in the longer term.
Labor’s obsession with negative gearing and capital gains tax changes has reared its head yet again. The latest version has …
As a rule, if you tax something more you will end up with less of it. This is a well-worn …
I would like a dollar for every time I’ve read how much the Australian economy needs tax reform. Sure, it …
The government’s low-key campaign to influence RBA decisions on interest rates flared into open conflict this week. The Treasurer vented …
News this week that the iron ore price has fallen to the lowest level in several years has economic commentators worried.
The contrast between this week’s high inflation figures with the long-awaited commencement of the Stage 3 tax cuts shows how …
The New South Wales Budget tabled this week completes the series of 2024-25 budgets from the larger states and the …
This week’s news that inflation had risen for April was no doubt an unwelcome, and somewhat unexpected, shock to many …
Treasurer Jim Chalmers has delivered a budget shaped by the upcoming election and his leadership ambitions. His politically-shaped budget attempts …
Ken Henry has issued another call this week for government to pick up the long-abandoned tax reform agenda and run …