Tax concessions and tax reform in Australia
Shane Oliver, Head of Investment Strategy and Chief Economist.
The article focuses on the debate around the four major “tax concessions” in Australia: negative gearing, the capital gains tax discount, dividend imputation and superannuation.
- Removing negative gearing for property investment and dividend imputation will only add to distortions in the tax system. Removing negative gearing won’t remove the real driver of poor housing affordability.
- These “tax concessions” also need to be assessed in the context of the income tax system, which is already highly progressive with just 17% of individual tax payers accounting for around 63% of income tax revenue.