Pauline Hanson’s February 2017 announcement that One Nation will again campaign for a flat-rate 2 per cent turnover tax takes her back to a policy position she first adopted nearly two decades ago.Initial analysis suggests that a shift from the current taxation mix to a 2 per cent turn over tax as proposed by Senator

In the 2016 budget the government announced that it would close carbon tax compensation to new recipients of welfare payments. This would save the government $1.4 billion over the forward estimates, by reducing the income of some of the poorest Australians by around $10 per fortnight.  This cut was introduced to the Parliament in September

The Australia Institute welcomes the opportunity to make a submission to Treasury’s Review of the Petroleum Resource Rent Tax (PRRT). The review occurs at a time when Australia is set to become the world’s largest gas exporter, yet PRRT revenues are declining. Several major gas projects are unlikely to pay PRRT for decades, according to

A full third of the benefit of a company tax cut would be enjoyed by just 15 companies in Australia. Once phased in the cut would be worth $6.7 billion per year to these companies. Most of these companies are ‘oligopolies’ that dominate their markets and have little incentive to reinvest proceeds of a tax

“…do you know any foreigners you want to give 5% of our national company income to? Any deserving cases out there?” The available evidence suggests that Keating is indeed correct — Australia is on the brink of handing a large gift to foreign investors while the evidence suggests Australia will not get even the dubious

The Australia Institute has assessed the proposal for a $5 levy on iron ore in Western Australia. The policy should be supported as a pragmatic alternative to a resource rent tax. The analysis finds that if the $5 levy had been imposed on relevant production over the last five years it would have raised $11.5

In the 2016 budget the government announced that it would close carbon tax compensation to new recipients of government welfare benefits.  This will have the effect of reducing the amount paid to welfare recipients. This will save the government $1.3 billion over the forward estimates. The clean energy supplement was not the only part of

New research released by the Australia Institute today shows that government moves to cut unemployment benefits will put recipients at 32% below the poverty line. The research also highlights staggering inequality in Australia where the 10 richest Australian families have the same wealth as the poorest 3.9 million Australians combined.

Are there really four dollars benefit for every one dollar company tax cut? Last year Treasury published a paper which purported to show that there was a four dollar benefit for every dollar cut in company taxes. In the paper accompanying the 2016-17 Budget, a new set of results was published which dealt directly with

A reveiw of OECD data of the relationship between living standards and cuts in company tax rates compared with the provision of better education services.

New research, based on US Internal Revenue Service (IRS) data, shows that the proposed company tax cut would see the Australian tax system delivering billions of dollars to the US Treasury.

A new report analysing findings from across several corporate regulatory bodies and related agencies finds widespread wrong-doing in the Australian private sector.  Meanwhile the six major regulatory bodies and other agencies have seen 3,926 staff cut (or 14.9%) between the 2013-14 and 2015-16 budgets – meaning there are less cops on the corporate beat. The

International and Australian data on tax rates and macroeconomic indicators provides no evidence of link between corporate tax cuts and a ‘growth dividend’. Despite widespread acceptance of the argument that cutting the corporate tax rate will boost economic growth, the economic evidence is not there according to a new report from David Richardson, Senior Research

This paper argues that an estate tax would make a useful contribution to the government’s tax armoury. The aging of the population means that the tax base is likely to be expanding well into the future. In addition the estate duty is useful because it is levied at a time when the one who accumulated the assets no

This paper attempts to critically examine proposals to cut company tax rates by looking at the circumstances of some of the main company tax-payers, namely the top 15 listed companies in Australia. The conclusion is that none of these companies are likely to significantly change their behaviour as a result of any cut in company

The Senate Rural and Regional Affairs and Transport Legislation Committee is currently examining the Shipping Legislation Amendment Bill 2015. The purpose of the Bill is to increase access to Australian coastal shipping for foreign crewed ships in an attempt to make coastal shipping cheaper. The proposed Shipping Legislation Amendment Bill 2015 is likely to reduce

Donations to environment organisations in Australia are tax deductible as long as the organisation in question is listed on the Commonwealth Register of Environmental Organisations. This listing gives an organisation Deductible Gift Recipient (DGR) status. A parliamentary inquiry is looking into the Register, largely at the behest of the mining industry. Parts of the mining

‘Now of course I am minimizing my tax and if anybody in this country doesn’t minimize their tax they want their heads read…’ – Kerry Packer giving evidence to the 1991 House of Representatives Committee of Inquiry into the Australian Print Media Industry when questioned about his tax payments. On 2 October 2014 the Senate referred an

This inquiry has been established to examine the so called “Asset Recycling Program”. In 2013 state, territory and federal treasurers agreed to the program, under which the states would receive incentives from the federal government to privatise assets in order to promote the building of new infrastructure projects. The asset recycling program will cost the

The Senate referred an inquiry into corporate tax avoidance to the Senate Economic References Committee. The Australia Institute submitted a submission to the inquiry focusing, in particular, on non-arms length licensing royalties between related parties. This submission does not address the whole field of tax avoidance. 

The Senate Community Affairs References Committee inquiry into the extent of income inequality in Australia asked The Australia Institute for some background briefing on how the role of dividend imputation in Australia was relevant to the committee’s deliberations. This brief provides some supplementary information on dividend imputation and franking credits.

Construction is an important industry in Australia, with sales accounting for $327 billion or some 21 per cent of GDP and its contribution to value added being 7.6 per cent of GDP. Australian Bureau of Statistics (ABS) data allow us to examine and estimate the productivity magnitudes involved in this industry and its components; building

The Palmer United Party today announced its intention to block a number of governmentsavings measures. This paper provides an overview of the distribution of those measures.

Inequality between those with the most and those with the least is rising in Australia. Australia is one of the wealthiest countries in the world, but there are many people in our society who are falling behind. The nature and extent of inequality is the choice of policy makers. We have the capacity to either reduce

The Australia Institute made a submission to the Senate Economics Legislation Committee on the Tax Laws Amendment (Temporary Budget Repair Levy) Bill 2014 and related bills. This levy has the effect of increasing the marginal tax rate from 45 to 47 per cent on incomes over $180,000. Inclusive of the Medicare Levy and the DisabilityCare

Governments are not like businesses. They provide services because the citizens demand them, not because delivering them is profitable. They collect taxes from citizens, not charge prices from customers. While a business has a legal responsibility to maximise the dividends it pays its shareholders, it makes no sense for a government to generate a surplus

The Australia Institute has published a number of papers on the finance industry. This submission examines various aspects of the financial services industry including banking, superannuation, cooperatives, the budget and consumer issues. 

The provision of infrastructure by government, financed by the issue of debt, is likely to be far superior to other options. Where private interests are in a position to offer a similar service, it’s likely that their costs will be much higher and that society will pay a higher price either through taxation or user

Submission to the Senate Inquiry into Minerals Resource Rent Tax Repeal and Other Measures Bill 2013. 

Electricity prices are a major contributor to cost of living pressures and a major cause of concern for Australian consumers. While the carbon tax has recently been depicted as the main culprit in electricity price increases, electricity prices have been increasing rapidly for the past two decades. The cost of electricity increased by 170 per