This paper examines the question of whether Australia should continue to provide tax concessions amounting to well over $10 billion a year and concludes that it should not.

The paper includes a number of suggestions for reform, principally: eliminating the 50 per cent discount; incorporating all pre-1986 assets; deemed realisation of assets on death; and including owner-occupied housing above a certain value. These changes would raise a great deal of revenue, thus allowing for meaningful tax reform, and contribute to a sounder and fairer tax system.