We want your feedback! Complete the 2022 Newsletter Subscriber Survey and you can go into the draw to win: 2x $200 vouchers, 3x My APO+ memberships, and a ticket to EIS 2023.

Income tax

NARROWER TERMS


Working paper

Hundreds and thousands: bunching at positive, salient tax balances and the cost of reducing tax liabilities

Australian taxpayers display reference-dependent preferences when filing their tax returns - they bunch at positive and salient thresholds. In this paper, the authors develop a model of taxpayer behaviour to show that bunching heterogeneity reflects both differences in preferences and the rate at which the...
Report

Using individual income tax data in automatic voter registration systems: a state-by-state analysis

This report assesses the effectiveness of using United States income tax data for the purpose of automatic voter registration or re-registration, focusing on the level of match between each state’s standard individual income tax form and its voter registration requirements.
Working paper

Tax knowledge and tax manipulation: a unifying model

In this working paper, the authors provide a unified analysis of taxation and taxpayer education when individuals have an incomplete understanding of a complex tax system. The analysis is independent of whether income is earned legitimately, or by avoiding or evading taxes.
Report

Fair go gone: stage 3 tax cuts and LMITO by occupation

The stage 3 tax cuts, worth $15.7 billion per year will come into effect in July 2024, while the Low- and Middle-Income Tax Offset (LMITO), worth $7 billion per year is due to end this year. This paper looks at the distribution of the tax...
Policy report

Orange Book 2022: policy priorities for the federal government

Building on research and analysis published by Grattan Institute since it was founded 13 years ago, this report identifies reforms to boost incomes, improve health and education, create better transport links, make housing more affordable, generate meaningful progress on climate change, and strengthen Australia’s political...
Report

Rich man’s world: gender distribution of the stage 3 tax cuts

The Australian government has claimed that young women are some of the biggest beneficiaries of their income tax cuts over recent years. This analysis shows that the stage 3 tax cuts, which the government has committed to introduce after the next election, will see most...
Report

The LMITO and stage 3 tax cuts by electorate

This electorate analysis of the Morrison Government’s current plan to scrap the Low and Middle Income Tax Offset (LMITO) after 2021-22 shows most taxpayers will be worse off when the legislated Stage 3 tax cuts to high income earners comes into effect in 2024-25.
Guide

Bracket creep and its fiscal impact

'Bracket creep' is a term that describes a situation where income growth causes individuals to pay higher average income tax rates each year. This explainer examines the impact of bracket creep from the perspective of both individuals and government finances.
Report

Owning a share of your work: tax treatment of Employee Share Schemes

An Employee Share Scheme (ESS) is a scheme where employers offer shares or options to an employee in relation to their employment. This report highlights the benefits, but also the difficulties in measuring the usage of ESS in Australia, and also examines the effectiveness of...
Working paper

The ATO Longitudinal Information Files (ALife): Individuals - a new dataset for public policy research

This working paper provides an overview of the ATO's 'ALife - Individuals' dataset and outlines some of the possibilities for public policy research and evaluation that will improve understanding of taxpayer behaviour and support policy development.
Survey

Per Capita tax survey 2021

The Per Capita Tax Survey 2021 provides valuable insights into public sentiment towards the federal government’s role in the post-COVID recovery, and can be used as a valuable resource for policy-makers in the months ahead.
Discussion paper

Bye-bye tax returns: a standard deduction for lower, simpler, and fairer taxes

This discussion paper proposes a straightforward and achievable tax reform—a standard deduction—that would lift billions of dollars worth of dead weight off taxpayers' shoulders every year.
Working paper

1985 reform of the Australian tax system

After the tumult of the Whitlam Government, the Fraser Government (1975-1983) saw consolidation with less reform. The 1975 Asprey report remained largely unactioned, despite the fundamental problems that burdened the Australian tax system. The 1983 election of the Hawke Government, however, set in train a...
Working paper

Incidence of capital income taxation in a lifecycle economy with firm heterogeneity

In the paper, the authors study the incidence of capital income taxation in a dynamic general equilibrium model with heterogeneous firms and lifecycle households.
Working paper

The economic consequences of major tax cuts for the rich

This paper uses data from 18 OECD countries over the last five decades to estimate the causal effect of major tax cuts for the rich on income inequality, economic growth, and unemployment.
Discussion paper

Tax cuts or spending: what is the most effective stimulus?

The ultimate way to measure the success of any government-backed stimulus project is by how much additional employment it creates. This paper estimates the additional employment that bringing forward stage 2 of the proposed income tax cuts might create.
Report

Early tax cuts as stimulus – gender analysis

This paper looks at how much of the benefit of bringing forward the tax cut goes to women and how much goes to men, based on two options for how the federal government might bring forward the tax cuts.
Survey

Per Capita tax survey 2020

The tenth annual Per Capita tax survey provides an unparalleled insight into the views held by Australians of all ages, from across the country, about the role of tax and public services in our national life. It provides valuable insights to policy makers for the...
Working paper

Early federation reviews and 1942 income tax unification

In Australia’s first five decades as a Federation, tax reform efforts were driven by the need to establish robust revenue bases for a growing nation and settle relative taxing responsibilities of the Commonwealth and state governments. These decades were also a time of crises with...
Discussion paper

Early tax cuts as stimulus

Modelling in this paper demonstrates that bringing forward Stages 2 and 3 of the federal government’s income tax cuts would mainly benefit high income earners and have a very poor stimulatory effect on the economy.