The Tax White Paper is an opportunity to look at areas where the tax system is failing and how to improve it. There are many ways Australia can tax smarter and reduce distortions that the current tax system creates.

The Australia Institute has identified a number of areas for reform, outlined in our recent paper It’s the revenue stupid: Ideas for a brighter budget.

These proposals have the potential raise billions of dollars in additional revenue which could reduce the budget deficit, increase spending in areas of greater need or allow the government to reduce inefficient, complex or inequitable taxes. These proposals also help address distortions in the taxation system.

The proposals for reform include changes to superannuation tax concessions, restricting negative gearing to new properties and scrapping the CGT discount. Finally, we also propose the introduction of a minimum average rate of tax based on total income which we called a ‘Buffett rule’ after a similar proposal in the United States. It also includes a discussion on Franking credits and financial transaction tax and a super profits tax on banks.