ACOSS is calling for tax reform that doesn’t raise prices but instead reduces inequality while lifting revenue and productivity.
Ahead of the productivity roundtable next month, ACOSS has today released a paper arguing that raising the GST would hurt people on low and modest incomes who are forced to spend more of their money than people on higher incomes who can save more.
“We are looking forward to an inclusive, frank and ambitious discussion about pressing tax reform,” said ACOSS CEO Dr Cassandra Goldie AO.
“We need a fairer and more effective tax system that secures the revenue we need to fund essential services and safety nets while encouraging more productive investment to create jobs and lift living standards.
“This can be done with reforms that lift productivity and overall revenue without increasing the burden for people on low and modest incomes.
“We welcome the Prime Minister’s comments that raising the GST is not tenable.”
ACOSS is calling for reforms to improve the fairness of the income tax system, including by curbing personal tax shelters that waste public revenue, increase wealth inequality and undermine productivity.
“Our sector stands ready to work with the government and key stakeholders on this historic opportunity to reform our tax system,” said Dr Goldie.
In its paper on the GST, ACOSS shows that shifting tax from income to consumption would widen wealth inequality, deepen poverty and deliver only modest and uncertain economic efficiency gains.
“The income tax system is an essential source of revenue for the services and supports we need and is our main progressive tax. Without it we would live in a harsher and more unequal society,” said Dr Goldie.
Contact details:
Lauren Ferri: 0422 581 506
Charlie Moore: 0452 606 171