CANBERRA (AAP) By Dr. Majid Khan-Former Treasury Secretary Ken Henry says Australia has run out of time to avert imminent crises caused by an aging population, including increasing tax burdens on workers.
Henry, author of a major study on taxation under Dr. Rudd, said intergenerational equity is declining.
At a tax reform roundtable in Canberra, led by blue-green independent Allegra Spender, Henry said Australia would be “very, very, very much” to avert the crisis described in the first generation report 20 years ago. “We must act swiftly,” he said.
He said Australia is now in a worse situation than it was in 2002. The report warned that future generations could face heavy tax burdens to meet increased spending on health care and other services needed by an aging population.
“We actually backed off,” he said of Dr. Henry. It’s never too late to avert a crisis, but he said Australia must act quickly to enact reforms.
Mr Misspender said tax reform was one of Australia’s biggest overlooked challenges, but the issue was clearly missing from his 2022 elections.
“They wouldn’t really touch it, except that both parties would put people at ease,” she said at the roundtable.
John Daly, former director of the Grattan Institute and partner at EY Port Jackson Partners, said tax reform is political because it, by definition, makes some people pay more in taxes. I agree that it is a serious issue.
Professor Daley also said most tax reform proposals are politically attractive to resist. “However, the opposition often thinks it’s a really good idea and often silently prays that it will come to pass before returning to government and living with the evidence of reform.
Given the politically challenging nature of tax reform, it is important to focus on changes that are worth the political capital that will inevitably have to be spent.
Discussions on tax reform are taking place while the Albanian government prepares its second budget in May.
Strong commodity prices continue to improve budget outcomes, despite long-term pressures on budgets such as defense, aged care and health care.
The monthly report released on Friday showed a deficit of $12.9 billion, down $20.5 billion from her $33.4 billion budget deficit in October. Since the last budget, the government has collected $13 billion more in taxes and paid $7.5 billion less than expected.
Treasury Secretary Katie Gallagher said the government will pay most of the upward revenue revisions similar to the October budget and show spending restraints where necessary.
“We know that short-term revenue gains from higher commodity prices cannot offset longer-term challenges,” Gallagher said. Former Treasury Secretary Ken Henry says Australia has run out of time to avert imminent crises caused by an aging population, including increasing tax burdens on workers.
Henry, author of a major study on taxation under Dr. Rudd, said intergenerational equity is declining.
At a tax reform roundtable in Canberra, led by blue-green independent Allegra Spender, Henry said Australia would be “very, very, very much” to avert the crisis described in the first generation report 20 years ago. “We must act swiftly,” he said.
He said Australia is now in a worse situation than it was in 2002. The report warned that future generations could face heavy tax burdens to meet increased spending on health care and other services needed by an aging population.
“We actually backed off,” he said of Dr. Henry. It’s never too late to avert a crisis, but he said Australia must act quickly to enact reforms.
Mr Misspender said tax reform was one of Australia’s biggest overlooked challenges, but the issue was clearly missing from his 2022 elections.
“They wouldn’t really touch it, except that both parties would put people at ease,” she said at the roundtable.
John Daly, former director of the Grattan Institute and partner at EY Port Jackson Partners, said tax reform is political because it, by definition, makes some people pay more in taxes. I agree that it is a serious issue.
Professor Daley also said most tax reform proposals are politically attractive to resist. “However, the opposition often thinks it’s a really good idea and often silently prays that it will come to pass before returning to government and living with the evidence of reform.
Given the politically challenging nature of tax reform, it is important to focus on changes that are worth the political capital that will inevitably have to be spent.
Discussions on tax reform are taking place while the Albanian government prepares its second budget in May.
Strong commodity prices continue to improve budget outcomes, despite long-term pressures on budgets such as defense, aged care and health care.
The monthly report released on Friday showed a deficit of $12.9 billion, down $20.5 billion from her $33.4 billion budget deficit in October. Since the last budget, the government has collected $13 billion more in taxes and paid $7.5 billion less than expected.
Treasury Secretary Katie Gallagher said the government will pay most of the upward revenue revisions similar to the October budget and show spending restraints where necessary.
“We know that short-term revenue gains from higher commodity prices cannot offset longer-term challenges,” Gallagher said.
