PwC believes there is a clear need for comprehensive tax reform - done the right way. The 'right way' means increasing those taxes that have the least effect on investment and employment, and at the same time reducing reliance on taxes that distort incentives to work, invest and transact business. It also means addressing those factors which increase the complexity of the tax system and the cost of compliance.
This is an issue that will not go away. As part of a broader community discussion about the challenges Australia faces, we need an informed and intelligent conversation on tax. Leaders of civil society, business, unions and the public policy community must drive this conversation if we are to realise the benefits across all parts of society. The overall objective is twofold: economic growth, and enhancing the well-being of the Australian public.
With bracket creep now firmly on the federal government's agenda, we explore bracket creep and what can be done to resolve it.
We examine the potential effects of changes to two significant tax benefits for investors - negative gearing and the capital gains tax discount.
While corporate tax reform alone is not an economic cure, it should feature strongly in any long-term plan for growth and innovation, allowing increased investment and boosting the Australian economy’s growth potential.
PwC modelling shows it is possible to broaden and increase GST, fully compensate two-thirds of Australians and still have 40 to 50 percent of the revenue raised left to invest to help grow the economy.
Successful tax reform demands a fair and efficient tax system which strikes a balance between income tax and GST. How and where can this balance be found?
With public and political attention focussing squarely on GST reform, PwC has modelled the budgetary and distributional consequences of various changes to the rate and base of the GST.
It is critical to Australia’s future prosperity that we pursue genuine tax reform. View PwC's response to the Commonwealth Government's Tax Discussion Paper.
PwC's snapshot outlines the main findings of the IGR and its insights on the future for our country, the implications for the fiscal health of the Federal Government and the case for tax reform.
Our first publication explores why we need pursue comprehensive tax reform. Launched on 23 July 2013, this publication looks at the long term future of Australia's economy.
Launched April 2014, our second publication in the 'Protecting our Prosperity' series moves beyond the why and examines what we need to do to achieve change in our tax system.
On 30 March 2015, the Federal Government released a tax discussion paper "Re:think, Better tax system, better Australia", which formally starts the process for developing the White Paper for Reform of Australia's Tax System.