Our tax system is reformed in the wake of the pandemic

Tax reform has been on the agenda for decades, but since the introduction of the goods and services tax in 2000, governments have had little appetite for change.

The OECD’s latest economic survey, however, has again made the case for reform. It says Australia has become increasingly reliant on personal income taxes, which will make it harder for governments to raise money as the population ages. Personal income taxes made up 47% of government revenue in 2019-20 and account for almost 12% of GDP, compared with around 8% for the OECD average. The GST accounted for only 13.4%