Per Capita tax survey: Public attitudes towards taxation and government expenditure

• David Hetherington, Katherine Gregory
• Per Capita

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19 January 2010This report presents the results of a survey undertaken by Per Capita on public attitudes towards taxation in Australia.

Per Capita has asked over 1,000 adult Australians for their opinions on a wide range of taxation issues. The Tax Survey was undertaken against the backdrop of Australia's Future Tax System Review ('the Henry Review') and the global financial crisis (GFC), each of which has stimulated new discussions and revived old arguments about tax, public spending and deficits. As most analysis surrounding the Henry Review has been technocratic and limited to those familiar with the tax system, this Survey offers a macro-perspective of everyday Australians’ attitudes toward taxation, public spending and the role of government.

The poll reveals some intrinsic Australian values - our egalitarianism and belief in the social contract. Australians believe in a progressive tax system and a society that invests in the provision of public goods and services, even if that means we are periodically required to run budget deficits. Simplicity also rates high on the list of public concerns about the tax system.

Perhaps unsurprisingly, the Survey shows considerable lack of awareness about levels of taxation and the way in which revenue is spent. Finally, we see a stark cognitive dissonance in which taxpayers express contradictory desires for both lower taxes and increased public expenditure.