Tax Reform

Exploring the Personal Income Tax System

PwC tax specialists explore and model opportunities to reform the Australian personal income tax system in a three-part publication series. Should we rely on our current tax bracket regime? Is our taxation treatment of capital income and other labour income optimal? What benefits and challenges would elevating the tax-free threshold bring?

Paper One - Implementing a Dynamic Tax Rate Regime

In the first of a three-part publication series looking at opportunities to reform the Australian personal income tax system, PwC tax specialists explore current tax brackets and how moving to a dynamic system will improve navigation, transparency and understanding for taxpayers; including simpler tax calculation methods, a reduction in the movement of the effective marginal tax rate and smoother increments in tax payable per dollar earned.

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Paper Two - Separate taxation of labour and capital income

There are numerous sound economic and equity arguments in favour of a progressive tax rate system for labour income, but what about the tax treatment of capital (or savings) income? Could a dual income tax system with separate regimes for the taxation of labour income and capital income be the answer? PwC's tax specialists explore the details. 

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Paper Three - Removal of the tax-free threshold

In the final paper of this three-part publication series looking at opportunities to reform the Australian personal income tax system, PwC tax specialists explore the tax-free threshold, and suggest the replacement of the current tax-free threshold by a more comprehensive tax offset would facilitate much better targeting of concessional tax treatment for low income levels.

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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.

 

 

Comprehensive tax reform in the US is making headlines globally. 

The changes to the US tax system, led by the Trump Administration and Republican Congressional leaders, mean significant changes to corporate, individual and international tax rules.

How does this impact Australia?  Explore insights from our experts.

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Tax Reform Publications

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Contact us

Pete Calleja
Australian Tax Leader, PwC Australia
Tel: +61 2 8266 8837
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Peter Collins
International Tax Leader, PwC Australia
Tel: +61 3 8603 6247
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Michael Bona
Global Tax Leader
Tel: +61 7 3257 5015
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Paul Abbey
Partner, PwC Australia
Tel: +61 (3) 8603 6733
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Angela Danieletto
Partner, PwC Australia
Tel: +61 2 8266 0973
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