Australia is a low tax nation, and this has left Australians with higher rates of poverty, poorer services and crumbling infrastructure.
If the government raised as much revenue as the average tax take of advanced nations in the OECD, it would have an extra $135 billion a year.
That could be used to improve infrastructure, deliver better education and health services and fast-track the shift to a low-emissions economy.
The Australia Institute proposes a range of changes to the tax system that are already at the centre of policy debate. Some are supported by current members of parliament, while others have been major party policy in the past. They are well-known by policy practitioners and popular with voters.
Such changes would not mean higher taxes for the vast majority of Australians, but would instead be done in ways which will make Australia fairer and safer.
We could:
- Cut fossil fuel subsidies and end the gas industry’s free ride.
- Reform negative gearing and the capital gains tax discount.
- Close the tax loopholes for superannuation and luxury utes.
Such reforms to the tax system could raise between $12 billion and $63 billion a year:














