Why we need tax reform

Every Australian wants to leave the generation after them better off.

But when I talk to young Australians – they don’t feel they will be better off than their parents. They feel weighed down by the cost of housing, of renting, of education, and the growing costs of climate change. And a lot of parents are worried about their kids.

With the baby boomer generation heading into retirement, and our tax system dependent on income tax, we rely more and more on younger workers to support us all.

But it’s broader than that. Between 2004 and 2016, the average wealth of an over 65 household increased by over 50%, while the wealth of an under 35 household barely moved.

Tax is central to this and the other the big issues we're facing right now - cost of living, housing, climate change, and our economic prosperity. And it's central to stopping young Australians falling behind.

What I’m doing about it

The major parties are too timid to take this on, so I’ve been working on an independent strategy.

Over the past 18 months, I’ve invited leading economists, business leaders, unions, social sector organisations and environmental groups to join me in a series of roundtables.

I’ve also been listening to what you think – out in the community, through surveys, emails, and my Wentworth Community Tax forum and while I’m out in the community.

Reforming our tax system could help us address some of our biggest challenges, like housing affordability, sluggish productivity and the climate transition.

But most people in Canberra believe talking tax is dangerous – instead only talking about the easy stuff, the band-aids, and the short-term fixes.

The important reforms of the past have taken a long time to build consensus, but they've paid off.

That’s why I have released a Tax Green Paper that represents the culmination of this work. It doesn’t tell us what we should or shouldn’t do, instead it seeks to outline challenges as well as the current evidence base to provoke discussion about the solutions. The paper identifies a possible process for significant tax reform in the next parliament. I invite your feedback on this work.

Download my Tax Green Paper here

Share your feedback on the Green Paper here

Watch and listen

• ABC Insiders – Allegra talks tax and future generations with David Speers (link)
• ABC RN Breakfast – 'Our tax system is not set up for the future': Allegra Spender (link)
• Sky News – ‘Profound’ impact on young Australians without tax reform push, Spender warns (link)

Read more

• Australian Financial Review – There's a logic to Teal MPs tax reform push: The AFR View (link)
• The Daily Telegraph – ‘Big picture’ tax reform call (link)
• Australian Financial Review – Teal MPs back ‘brave’ GST debate (link)
• Canberra Times – Tax on the front line as calls grow for bolder reform (link)
• ABC News – Tax experts and climate scientists are increasingly saying the same thing (link)
• Sydney Morning Herald – Spender to hold own tax summit (link)