Sector pushes for tax reforms as ex-Treasury chief slams ‘wilful acts of bastardry’

The two-day Community Tax Summit, held in Melbourne from February 20-21, was hosted by progressive economic think tank Per Capita, and backed by a coalition of community organisations and philanthropic foundations.

Nearly 100 leading economists and sector representatives attended. The Institute of Community Directors Australia’s parent company, Our Community, was among the sponsors.

The summit’s discussions will be compiled into a green paper on tax reform, intended to influence the next federal government.

Ken Henry condemns tax system that robs the young

In a powerful keynote address, former Treasury secretary Ken Henry, speaking in the historic Solidarity Hall at Victorian Trades Hall, set the tone for the event as he methodically exposed the current tax system as “wilful acts of bastardry”, robbing young workers with ever-growing tax rates while shielding those with vast wealth.

Henry worked under both the Howard and Rudd governments, but he said every government since Kevin Rudd's had worsened inequality. He called for urgent reforms to prevent an “intergenerational tragedy”.

Many speakers shared his view that there needs to be a shift from taxing incomes to taxing wealth, including a push to ensure corporates paid their fair share. His proposals included:

• a comprehensive road user charge
• broadening the goods and services tax (GST)
• changes to capital gains tax
• boosting economic rent taxes
• cutting personal tax
• introducing a carbon tax.

In later keynotes, UK political economist Dr Katherine Trebeck and Melbourne University tax law expert Professor Miranda Stewart also called for major changes to both taxation and the “transfer” system that redistributes funds through welfare, health, housing and education. Their proposals included reconsidering an inheritance tax.

Melbourne University professor Roger Wilkins, a co-director of the Household, Income and Labour Dynamics in Australia (HILDA) survey, described aspects of the tax system as “infuriating”, saying it failed to generate sufficient revenue or stimulate growth.

Social justice campaigner Juanita McLaren shared her personal experience, describing what she called a “tax racket” that allowed her landlord to make a $700,000 tax-free profit while she had paid $180,000 in rent.

“I shouldn’t be a 51-year-old woman … who can’t afford rent anywhere in this country. That big chunk of money for doing absolutely bugger all is how we can start.”

Summit seeks solutions to a broken system

Speakers at the summit represented groups such as the Australian Council of Social Service (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 took part in panel discussions.

ACOSS chief executive Cassandra Goldie told the Community Advocate that listening to the summit’s speakers had increased her motivation to improve the system.

“As a wealthy country, we have real choices about the way we tackle inflation,” she said.

“And one thing we’re not prepared to accept is that you tackle inflation by keeping people hungry and homeless. The first thing we’ve got to do is ensure that the people that are struggling the most get the help that they need.”

Goldie said whichever party took government, “We are saying exactly the same thing to all of them. We are asking them to back the policies that will end poverty and reduce disadvantage in Australia, and we are urging all of them not to fuel racism, or discrimination, or hate”.

Per Capita chief executive Emma Dawson said insights from the summit would be collated to generate detailed advice to the government via a community tax green paper.

“This won't be the end of this conversation. What’s coming out of these two days will be taking all of the conversations, all of the materials, the speeches and the input from people in the room … and using it to frame a community sector green paper on tax reform.”

Dawson said partners, community sector leaders and the public would be invited to contribute to the paper, which would feature “really considered views on how to make the system better” to “grow the revenue base, invest in services and tax wealth better”.

The green paper would also draw on the findings of Per Capita’s 14^th annual tax survey, released this month, which showed that two-thirds of Australians (67%) wanted governments to spend more on public services, especially health, education and social security. The same survey found that 60% of respondents would be willing to pay more tax for better health services.

The study also showed that nearly three quarters of Australians (74%) thought big business did not pay enough tax, and that 65% thought that high income earners didn’t either.

Dawson said the research showed “a strong appetite … to create a much fairer tax system”.

“No matter who wins the election, we must come together to drive meaningful reform that serves all of us, and our children, and our grandchildren. And ensures that they've got not just an inhabitable planet to live on, but that they can build safe, secure, happy lives. Because what else is our political system meant to be about?

“We owe it to those future generations.”

More information

Community Tax Summit 2025