Key Points:
It is time for some hard decisions to deliver long-term
prosperity for the benefit of all.
Australia is not a high-taxing country. We are around the bottom
of the pack in terms of tax as a percentage of GDP.
However the global position masks a capricious system riddled
with incongruity, complexity, distortion and inequity. Some aspects
of the tax system provide a welfare state for the middle class and
the wealthy. At the same time we have a highly progressive personal
tax rate structure constructed with very complex rules –
particularly in the small business area – which hinders
entrepreneurship.
There are some key problem areas which should be addressed as
part of any root and branch review of the tax system.
