This paper argues that it is evident that Australia’s attraction as a location to conduct R&D has diminished, with the net tax benefit available for non-refundables now being amongst the lowest on a comparison of international R&D tax regimes.

We examine Australia's Mature Age Worker Tax offset (MAWTO), a targeted earned income tax credit of up to $500 to incentivize participation of older workers that existed from 2004-05 to 2014-15. Using a difference-in-differences approach, we find that MAWTO increased labor market participation by around 0.5 percentage points. For women only, it had a small...

The federal government welcomes stakeholder feedback on the exposure draft legislation and associated explanatory materials. In addition, this accompanying consultation paper outlines key areas where the government requests specific feedback on the implementation of the reforms.

This report summarises and responds to stakeholder submissions to the issues paper released in May 2018. It highlights the lack of publicly available information to inform the review and lays the case for the AER to use its information gathering powers to request this information from the network service providers.

I define a new tax instrument, the ‘deductibility rate’, which specifies the proportion of eligible expenses a taxpayer may deduct when preparing her taxes. If the utilities of gross income and deductions are separable, then the deduction elasticity reflects the revenue leakage caused by greater deductibility. To identify this elasticity, I develop the first method...