Australia would benefit from an overhaul of its tax system, including scrapping billions in capital gains and superannuation concessions, according to one of the world’s leading economic bodies.
In its yearly report on the Australian economy, the International Monetary Fund (IMF) said the breaks should be removed in order to ease our high level of personal income tax and company tax rates.
“Tax reforms should target system efficiency and fairness, reducing reliance on direct taxes and high capital costs that hinder growth,” it wrote.
“Tax breaks, including from capital gains tax discount and superannuation concessions, could be phased out to generate a more equitable and efficient tax system.”
Those two breaks alone are worth slightly over $70 billion a year – Australians claim about $19 billion in capital gains tax and $52 billion in superannuation concessions.
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