Push for tax reform to relinquish heavy burden on workers
New analysis is warning the federal budget could suffer from dwindling income streams.
The Parliamentary Budget Office is forecasting falls in company-tax and consumer-tax receipts.
It found the government will increasingly rely on income-tax receipts to maintain current revenue levels.
In 2015-16, 40%, Australian households received more in government payments than they paid in income tax.
“If nothing changes, that number could be up 50, 60%,” says Ross Greenwood.
Currently, income tax accounts for 53.7% of Australia’s federal tax take.
“As our population ages, more people go onto government benefits and fewer people are out there working and paying net tax.”
Dale Boccabella from UNSW Business School says “we need to do something”.
“We probably need to think about the state taxes, a really comprehensive land tax, we need to start thinking about that.”
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