The Unfinished Business of Income Tax Reform | BTalk

(MoneyWatch) 

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Robert Carling

(Episode 447; 14 minutes 22) Last year Secretary to the Treasury Dr Ken Henry led a panel of experts that presented a review to the Government of Australia's tax system. We're yet to hear the response to the proposals, or even much about the contents of the report. We do know though, that there's a lot of interest in the subject. The panel received 1,500 formal submissions to consider when preparing their appraisal.

On today's BTalk we hear from Robert Carling, a Senior Fellow at the Centre for Independent Studies. He has held positions in the NSW Treasury, the Commonwealth Treasury, the World Bank and the International Monetary Fund.

Robert hopes the final solution adopted from the Henry tax review will include a restructuring of how we pay our income tax. In his paper 'The Unfinished Business of Australian Income Tax Reform' he suggests that a way forward is to adopt a dual tax rate, differentiating the rate of tax for labour income and capital income. It seems a more equitable approach than an outright flat rate reportedly suggested by Henry Ergas in a paper commissioned by Malcolm Turnbull when he was shadow treasurer.

Have a listen and tell us what you think in the comments section at the end of this post.

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See also:

• A Suggestion for the Henry Tax Review | BTalk Australia