Our submission focuses primarily on the role tax reform should play in the productivity agenda. Tax is an essential element of promoting productivity, primarily because:

• Additional revenue is required to make productivity-enhancing investments in education, health, infrastructure and other sectors of the economy;
• Existing tax settings allow for (and in some ways facilitate) growing inequality, mounting evidence shows the role of inequality in reducing economic growth;
• Parts of Australia’s tax system incentivise spending and investment in unproductive activities.