This analysis of the long term impacts of bracket creep shows that Australian taxpayers at all income levels have received more in tax cuts than they have lost through bracket creep – in other words, they have already been overcompensated for bracket creep.
The most basic requirement for any tax system is to raise enough revenues to fund the legitimate expenditure requirements of governments. Since the Global Financial Crisis, tax adequacy has become an increasing concern because of ill disciplined government spending.
This paper examines the Turnbull Government’s 2018 personal income tax proposals by presenting a distributional analysis of the tax cuts and then looking at some general tax principles and considerations that we can use to assess the present proposals.
We study optimal income tax progressivity in an environment where individuals are exposed to idiosyncratic income and health risks over the lifecycle. Our results, based on a calibration for the US economy, indicate that the presence of health risk combined with incomplete insurance markets amplifies...
This analysis continues the Australia Institute's analysis of the effects of the Turnbull Government’s income tax plans, by looking at the distribution of the benefits by federal electorate.
The current debate over personal tax cuts and the Budget echoes a similar debate a decade ago, when just before the 2007 federal election, the Coalition government promised $31 billion of income tax cuts.
The Turnbull Government’s proposed personal income tax cuts are the largest ever proposed in a federal budget. As is outlined in this submission, the substantial reduction in revenue is not obviously consistent with the government’s medium-term fiscal strategy.
Submission to the Senate Economics Committee on the proposed income tax cuts, in which ACOSS recommends that these cuts be opposed in their entirety and lists the main reasons why.
The Turnbull Government's planned tax cuts will result in a fundamental change to Australia's income tax system. It is not simply an income tax cut - it will move Australia to a flat tax for over 80% of workers.
This briefing note shows about two thirds of the benefit of the income tax cuts proposed will flow to men, while previous spending cuts have mainly disadvantaged women.
This paper presents an algebraic approach to estimating Effective Marginal Tax Rates (EMTRs) in New Zealand.
This paper reviews the case for personal income tax cuts, the various forms they could take, and the budgetary scope for cuts. It then suggests what the priorities should be.
This research models several politically acceptable pathways to reform negative gearing and CGT so as to reduce impacts on less sophisticated property investors. Two reform models— a rental deduction cap of $5,000 and a progressive rental deduction based on income—could lead to savings of over...
In the 2017–18 Budget, the projected return to surplus in 2020–21 is predominantly due to a projected increase in personal income tax revenue. This report analyses the expected increase in average tax rates for individuals in different parts of the taxable income distribution and examines...
The Department of the Treasury (Australia) has developed the CAPITA model, a general-purpose, static microsimulation model, which is used to analyse the combined effect of changes to personal income tax and transfer policy on families with different income levels, family structures and living arrangements.
Australians are a generous bunch – with around 14.9 million adults (80.8%) donating $11.2 billion to charities and non-profit organisations (NPOs) over twelve months in 2015–16.
This special report provides early information on changes to the tax rules affecting the collection of tax on benefits an employee receives from an employee share scheme. Benefits provided to an employee under a share purchase agreement are “employment income” for income...