Five problems with the Australian tax system – and the changes to Stage 3

Dr Shane Oliver, Head of Investment Strategy & Chief Economist insights

The Australian Government’s changes to the Stage 3 tax cuts have refocussed attention on the need for tax reform.

The Australian tax system has five key problems: it’s heavily reliant on income tax; it’s complicated by numerous tax

concessions; it’s highly progressive; it has ongoing problems with “bracket creep”; & suffers from several anachronisms.