This discussion paper outlines the Government's plan for Australian tax reform, presented at the October 2011 Tax Forum.

 
The Government has embarked on an ambitious tax reform agenda to reward hard work and boost participation, to support families and the disadvantaged, and to address the demands of the mining boom. But there is more to be done.
The tax system plays a vital role in Australia, funding the critical services like health, education and defence that our community needs. But the tax system is also an important influence on how we live our lives and the choices we make at home and at work. It affects the rewards for work and how competitive our economy is internationally. So the tax system needs to be designed to fund the quality public services we need, while also delivering the incentives we want. 
Australia faces a number of challenges over the coming years — challenges that raise important questions for all levels of government. How do we maximise the benefits flowing from the shift in global economic weight from West to East? How do we fairly spread opportunity to all corners of our patchwork economy? How do we respond to the realities of an ageing population?  
Meeting these and other challenges will play an important role in ensuring Australia’s ongoing prosperity. This will involve finding further ways to boost workforce participation, to improve productivity by relieving capacity and infrastructure constraints, and to do all this in a fiscally responsible and sustainable way. 
The Government is delivering on reforms in a range of policy areas to achieve these goals, including investing in skills and the infrastructure of the 21st century, such as the National Broadband Network. The Government is also investing in major health reform, to deliver a better and more sustainable system into the future.  
The tax system is a major driver of the type of fair and prosperous society that we want. This is why reform of the tax and transfer system is important to achieving our economic goals. Tax reform should aim to make the economy stronger, our society fairer and the tax system simpler. 
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