Ahead of the upcoming Australian Government's Economic Reform Roundtable, this policy report highlights relevant research and potential policy directions aimed at achieving the Roundtable’s stated goals of improving resilience, productivity and fiscal sustainability. It provide policymakers with recommendations in four key areas.

Three issues papers covering each of the themes of the Australian Government’s Economic Reform Roundtable: economic resilience, productivity, and budget sustainability and tax reform. They define the issues, set out recent trends and outline the big challenges and opportunities Australia is confronting.

This report suggests that Australia’s heavy reliance on personal income tax is unsustainable and will worsen without reform. Bracket creep is an automatic tax increase that occurs when income tax thresholds remain fixed while wages rise with inflation. This report proposes a straightforward solution: indexing personal income tax brackets to inflation.

This interim report presents draft recommendations focused on two key policy reform areas: corporate tax reform to spur business investment and regulating to promote business dynamism. Significant changes to corporate tax and regulation can have a substantial beneficial impact on productivity growth in Australia. This interim inquiry report shows how.

The paper argues that shifting tax from income to consumption would widen wealth inequality, deepen poverty and deliver only modest and uncertain economic efficiency gains. It proposes that the Australian income tax system be reformed by closing tax shelters to improve equity and the efficiency of investment at the same time.