Hostname: page-component-586b7cd67f-dsjbd Total loading time: 0 Render date: 2024-11-22T19:55:29.771Z Has data issue: false hasContentIssue false
  • English
  • Français

A Better and Larger GST?

Published online by Cambridge University Press:  01 January 2023

John Freebairn
John Freebairn*
Affiliation:
Department of Economics, University of Melbourne
Rights & Permissions [Opens in a new window]

Abstract

Core share and HTML view are not available for this content. However, as you have access to this content, a full PDF is available via the ‘Save PDF’ action button.

This article argues the case for changes to the Goods and Services Tax (GST) as a key part of fundamental tax reform in Australia. A more comprehensive base would bring gains in efficiency and simplicity, with equity goals better met by the income transfer system. Revenue gains of a broader GST base and/or a higher rate could fund tax mix change packages to replace more distorting state stamp duties and fund lower income tax rates. The tax mix change packages would improve efficiency and simplicity, with no substantial changes to aggregate revenue or to equity.

Keywords

H21H22Goods and Services Taxsocial securitytax basetax mixtax and transfer policytax efficiencyequity and simplicitytax revenue
Type
Symposium
Information
The Economic and Labour Relations Review , Volume 22 , Issue 3: Australia's Transfer and Tax System Under Review , November 2011 , pp. 85 - 100
Copyright
Copyright © The Author(s) 2011

References

Arnold, J. (2008) Do Tax Structures Affect Aggregate Economic Growth? Empirical Evidence from a Panel of OECD Countries, OECD Economics Department Working Papers, No. 463, OECD, Paris.Google Scholar
Australian Bureau of Statistics (ABS) (2006) Household Expenditure Survey, 2003–04 (Reissue), Catalogue No. 6530.0, Commonwealth of Australia, Canberra.Google Scholar
Australian Bureau of Statistics (ABS) (2011) Taxation Revenue, Australia, 2009–10, Catalogue No. 5506.0, Commonwealth of Australia, Canberra.Google Scholar
Australian Government (2011a) Clean Energy Future, Commonwealth of Australia, Canberra.Google Scholar
Australian Government (2011b) Tax Reform: Next Steps for Australia, Tax Forum Discussion Paper, Commonwealth of Australia, Canberra.Google Scholar
Bird, R. (2010) ‘Value added taxes and excises: Commentary’ in Adams, S., et al (eds) Dimensions of Tax Design: The Mirrlees Review, Institute of Fiscal Studies, Oxford University Press, Oxford, pp. 363–369.Google Scholar
Bird, R., Smart, M. (2010) ‘Assigning state taxes in a federal country: The case of Australia in Melbourne Institute (ed.) Australia’s Future Tax and Transfer Policy Conference: Proceeding of a Conference, Melbourne Institute of Applied Economic and Social Research, Melbourne, pp. 72–94.Google Scholar
Bleaney, M., Gemmell, N., Kneller, R. (2001) ‘Testing the endogenous growth model: Public expenditure, taxation and growth over time’, Canadian Journal of Economics, 34(1), pp. 36–57.CrossRefGoogle Scholar
Cnossen, S. (2010) ‘Value added taxes and excises: Commentary’ in Adams, S., et al (eds) Dimensions of Tax Design: The Mirrlees Review, Institute of Fiscal Studies, Oxford University Press, Oxford, pp. 370–386.Google Scholar
Costello, P. (1988) Tax Reform: Not a New Tax, a New Tax System, Commonwealth of Australia, Canberra.Google Scholar
Crawford, I., Keen, M., Smith, S. (2010) ‘Value added taxes and excises’ in Adams, S., et al (eds) Dimensions of Tax Design: The Mirrlees Review, Institute of Fiscal Studies, Oxford University Press, Oxford, pp. 275–362.Google Scholar
de Mooij, R., Ederveen, S. (2008) ‘Corporate tax elasticities: A readers' guide to empirical findings’, Oxford Review of Economic Policy, 24(4), pp. 680–697.CrossRefGoogle Scholar
Dickson, I., White, D. (2010) ‘Value added taxes and excises: Commentary’ in Adams, S., et al (eds) Dimensions of Tax Design: The Mirrlees Review, Institute of Fiscal Studies, Oxford University Press, Oxford, pp. 387–406.Google Scholar
Freebairn, J. (2009) ‘Reform of state taxes’ in Evans, C., Krever, R. (eds) Australian Business Tax Reform in Retrospect and Prospect, Thompson Reuters, Sydney, pp. 517–535.Google Scholar
Freebairn, J. (2010) ‘Overview of “Australia’s Future Tax System’” in Evans, C., Krever, R., Mellor, P. (eds) Australia’s Future Tax System: The Prospects After Henry, Thomson Reuters, Sydney, pp. 11–62.Google Scholar
Gabbitas, O., Eldridge, D. (1998) Directions for State Tax Reform, Productivity Commission Staff Research Paper, AusInfo, Canberra.Google Scholar
Gemmell, N. (2010) ‘Tax reform in New Zealand: Current developments’ in Evans, C., Krever, R., Mellor, P. (eds) Australia’s Future Tax System: The Prospects After Henry, Thomson Reuters, Sydney, pp. 63–92.Google Scholar
Gravelle, J. (2010) ‘Economic effects of investment subsidies’ in Claus, I., Gemmell, N., Harding, M., White, D. (eds) Tax Reform in Open Economies: International and Country Perspectives, Edward Elgar, Cheltenham, pp. 38–60.Google Scholar
Harvey, J., Feely, N., Freebairn, J., Pollard, D., Townsend, K. (2001) Review of State Business Taxes, Department of Treasury and Finance (Victoria), Melbourne.Google Scholar
Henry, K., Harmer, J., Piggott, J., Ridout, H., Smith, G. (Henry Review) (2010) Australia’s Future Tax System: Final Report to the Treasurer, Treasury, Canberra.Google Scholar
Independent Pricing and Regulatory Tribunal (IPART) (2008) Review of State Taxes: Final Report, New South Wales Government, Sydney.Google Scholar
Johansson, A., Heady, C., Brys, B., Vartia, L. (2010) ‘Taxes and firm performance: Evidence from the OECD’ in Claus, I., Gemmell, N., Harding, M., White, D. (eds) Tax Reform in Open Economies: International and Country Perspectives, Edward Elgar, Cheltenham, pp. 15–37.Google Scholar
Organisation for Economic Cooperation and Development (OECD) (2011) Consumption Tax Trends 2010, OECD, Paris.Google Scholar
Poddar, S., English, M. (1997) ‘Taxation of financial services under a value added tax system: Applying the cash flow method’, National Tax Journal, 50(1), pp. 89–111.CrossRefGoogle Scholar
Ramsey, F. (1927) ‘A contribution to the theory of taxation’, Economic Journal, 37(145), pp. 47–61.CrossRefGoogle Scholar
Stephens, R. (1989) ‘New Zealand tax reform’ in Head, J. (ed.) Australian Tax Reform in Retrospect and Prospect, Australian Tax Research Foundation, Sydney, pp. 65–100.Google Scholar
Stiglitz, J. (2000) Economics of the Public Sector, Third edition, Norton, New York.Google Scholar
Tax Working Group (TWG) (2010) A Tax System for New Zealand’s Future, Report of the Victoria University of Wellington Tax Working Group, Wellington, available: http://www.victoria.ac.nz/sacl/cagtr/pdf/tax-report-website.pdf [accessed 17 June 2010].Google Scholar
Tooth, R. (2007) An Analysis of the Demand for House and Contents Insurance in Australia, Report for the Insurance Council of Australia, (the Demand Analysis Report), contained in Exhibit 778 — Statement of R Tooth [WIT.7538.001.0001 at 0084–126], 2009 Victorian Bushfires Royal Commission Insurance and the Fire Services Levy, Submissions of the Insurance Council of Australia Limited.Google Scholar
Treasury (2003) Preliminary assessment of a new tax system, Economic Roundup, Autumn, available: http://www.treasurygov.au/documents/580/PDF/Roundup_Autumn_2003.pdf [accessed 1 November 2011].Google Scholar
Treasury (2011) Tax Expenditures Statement 2010, Commonwealth of Australia, Canberra.Google Scholar
Valadkhani, A. (2005) ‘Goods and Services Tax effects on goods and services included in the CPI basket’, Economic Record, 81(255), S104–S114.CrossRefGoogle Scholar