As the Treasurer embarks upon a national tax reform debate, it’s important that the Australian public thinks about what we actually want to tax and how much.
Who is paying too little tax? Are we taxing the right things? These are all democratic questions as much as economic ones.
Taxes are just one of the ways that governments raise the revenue needed to provide the hospitals, schools, roads, aged care and social safety nets Australians rely on.
The more tax a government collects, the bigger the public sector it can sustain. But who we choose to tax and how much has profound implications for fairness and equity.
The fact is, Australia is one of the lowest-taxing countries in the developed world.
Australia raises very little tax revenue compared to similar countries. If Australia were to collect the same amount of revenue from taxation as the OECD average, the Commonwealth would have had an extra $140 billion in revenue in 2023-24.
Think what an additional $140 billion a year could deliver for your local emergency room, primary school, aged care facility or national park.

