Equality Speaks

Australia may have dodged the bullet that has put the US, Britain and most European economies on life support, but our 2009 collection of essays shows that – despite our enviable economic position – Australia is not the egalitarian paradise that many believe it to be.

Equality Speaks features an eclectic mix of writers who highlight a common challenge – to use our (relatively) stable economic times to make the shift to a fairer Australia. It brings together some of our sharpest minds to look at paths to a more equal Australia in areas like transport, homelessness, education, women, tax, refugees, work and employment amongst others. It includes new research on the distribution of wealth in Australia.

Tax Reform

1

"The design of the tax system greatly affects peoples ability to generate their own resources through work, saving and investment and to draw on those resources when needed... [It] can create effects which greatly increase or reduce hardship and inequity." JULIAN DISNEY

The publication begins with a contribution by Julian Disney on Tax Reform. Tax provides the main source of money that governments use to promote economic and social opportunities for citizens. This includes opportunities to learn, work, to enjoy good health and relationships and to have affordable housing and transport — all of which are impacted by the design of the tax system.

The global financial crisis has sharply reduced government revenue and at the same time it has increased the amount that governments need to spend. The chapter argues that by addressing gaps and loopholes in the tax system, the Government can avoid losing vital revenue.

A priority for reform is to look at concessions and exemptions in the tax system that can influence particular economic types of ‘inequitable’ activity. For example the tax concessions for superannuation provide little to low income Australians and large concessions for people on high incomes. Another key area for reform is to close off the excessive scope for tax avoidance which increases pressures on other taxpayers, and erodes fairness and public confidence.

Disney observes that the tax system is increasingly used to provide benefits previously delivered through the social security system and this has weakened the central place of the social security system in preventing poverty.

pdfDownload Chapter 1 Tax Reform55.76 KB.