Progressive thinkers plan push for tax changes

Progressive economic think tank Per Capita has published a detailed summary of the two-day summit it hosted earlier this year at Victoria’s Trades Hall, and it hopes both the summary and the forthcoming green paper will influence the Albanese government’s agenda.

The 35-page document summarises policy recommendations and discussions from the February event. The green paper is scheduled for publication later this year.

Per Capita’s acting executive director, Sarah McKenzie, said Per Capita would use an early draft of the green paper to inform a submission to the federal government's Economic Reform Roundtable, which aims to improve the nation's productivity, economic resilience and budget sustainability.

Announced in late June, the government's roundtable is intended to "build consensus for long term economic reform" by hosting talks between business, unions, the community sector and key economic institutions.

Roundtable members will include representatives of the Australian Council of Trade Unions (ACTU) and the Australian Council of Social Service (ACOSS), alongside industry and business representatives.

Per Capita said its submission would flag many of the same concerns and recommendations addressed by the forthcoming green paper.

McKenzie said the green paper would propose a suite of tax reforms “aimed at fairer wealth distribution, reducing inequality, addressing the needs of young people and disadvantaged communities, and funding the transition to a net-zero economy”.

McKenzie said Per Capita welcomed Treasurer Jim Chalmers’ “early commitment to tax reform as a key part of Australia’s economic future”, made during a recent National Press Club address, while the August Productivity Summit announced by Prime Minister Anthony Albanese would be another chance to seek reform.

“Per Capita has long argued that tax reform is not just possible, but essential," McKenzie said.

She said the government’s proposed changes to superannuation accounts over $3 million were a positive step and had been “raised by multiple participants at the summit”.

Summit pushing for solutions to a broken system

The summit’s keynote address was delivered by former Treasury secretary Ken Henry, who described the current tax system as comprising “wilful acts of bastardry” for burdening young workers with ever-growing tax rates while shielding those with vast wealth.

Henry proposed a series of reforms, including a broader GST, changes to capital gains tax, increased economic rent tax, a reduction in personal tax and a new carbon tax.

But there were many more changes proposed at the event, which featured influential sector organisations including ACOSS, Anglicare, Oxfam, the Brotherhood of St Laurence, the Uniting Church, Prosper Australia, the Tax Justice Network and Single Mother Families Australia.

Prominent economic commentators such as Saul Eslake and Alan Kohler also took part.

The summit also reinforced insights from Per Capita’s annual tax survey showing that “Australians support a tax system that is fair and sustainable for everyone”.

The Institute of Community Directors Australia’s parent company, Our Community, was one of the sponsors of the summit.

More information

Read Per Capita’s Community Tax Summit summary

Community Directors' report from the Community Tax Summit