Grattan Institute How to build a better tax system: Economic Reform Roundtable recap
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Aug 22, 2025 Aruna Sathanapally, CEO of the Grattan Institute, dives into crucial tax reform insights to enhance Australia’s productivity. She discusses how the current tax system affects living standards and examines industrial challenges hindering growth. The conversation touches on reshaping corporate tax, considering road user charging, and the pivotal role of GST in tax collection. Sathanapally advocates for a fairer and simpler system that aligns with evolving economic realities, all while navigating complex political landscapes for sustainable reform.
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Tax Shapes Prosperity And Incentives
- A well-designed tax system funds human capital and stable institutions that boost investment and innovation.
- Tax choices also shape economic behaviour by signalling which activities to encourage or discourage.
Personal Tax Mix Distorts Investment
- Australia's personal income tax leans heavily on labour while treating passive income too generously.
- That imbalance distorts investment decisions and should be addressed to improve fairness and growth.
Rebalance Rather Than Just Cut Rates
- Rebalance the tax mix by narrowing concessional treatments for passive income rather than just cutting labour taxes.
- Shift revenue toward less damaging taxes so the same revenue supports growth and fairness.