Oliver’s Insights – Posted 18/06/2015

Tax concessions and tax reform in Australia

Shane Oliver, Head of Investment Strategy and Chief Economist.

The article focuses on the debate around the four major “tax concessions” in Australia: negative gearing, the capital gains tax discount, dividend imputation and superannuation.

 

Key points: 

  • Removing negative gearing for property investment and dividend imputation will only add to distortions in the tax system. Removing negative gearing won’t remove the real driver of poor housing affordability.
  • These “tax concessions” also need to be assessed in the context of the income tax system, which is already highly progressive with just 17% of individual tax payers accounting for around 63% of income tax revenue.

 

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