Comparative Analysis of Tax Platforms in Australian Elections

This report provides an analysis of the taxation platforms proposed by political parties in the upcoming Australian elections. It examines these platforms in light of the principles of a good tax system, including equity, efficiency, simplicity, certainty, and neutrality. The report discusses the implications of corporate tax cuts, the potential for GST reform, and the broader need for tax reform. It critiques the current tax structure, highlighting its impact on domestic income and the beneficiaries of these policies. The analysis concludes that while corporate tax cuts may stimulate economic growth, they can also lead to a reduction in domestic income and may not fully meet the criteria of a good tax system. The report advocates for a more comprehensive approach to tax reform, including a broader tax base and a focus on fairness and efficiency.

Running head: TAX LAW
Tax Law
Name of the Student
Name of the University
Author Note

Introduction
The platform relating to taxation that has been proposed by each of the political parties
contesting for the elections in Australia plays a significant role in their campaigns. The
victory of these parties broadly depends upon the merits of these tax platforms that has been
projected. There are two aspect to be considered with respect to the tax platforms. It needs to
ensure the simplification of the tax burden upon the taxpayers as well as the maximum
revenue to be raised with the help of the several tax schemes. These two aspects are required
to be balanced in an adequate tax structure. This needs to assessed in the light of the different
features of a good tax. This paper will strive to analyse the different taxation platform that
has been proposed by the political parties as a part of their campaign in the upcoming election
in Australia. It will also analyse the platform under the features of the good tax principle. It
will also strive to provide a conclusion to this discussion.
Body
The taxation policies that are projected by the political parties to strengthen their political
campaign is an important aspect in the victory of the parties. However, such platforms of
taxation would be analysed under the light of the good tax features1. There are four principles
that are required to be ensured to by a good taxation system. Firstly, there should be an
element of equity in the tax regime. This requires the tax structure to be just and fair for both
the payer of taxes and the collector of taxes2. Secondly, the tax structure will be required to
be efficient. It needs to be efficiently designed to address both the needs of the revenue
collection as well as the burden upon the taxpayer. Thirdly, the structure of the proposed tax
regime is required to be simple. This would make the calculation and the computation of the
1 Holmes, Kevin. International tax policy and double tax treaties: an introduction to principles and application.
IBFD, 2007.
2 Hou, Yilin. "Principles for the Design of the Real Property Tax." Development, Governance, and Real
Property Tax in China. Palgrave Macmillan, Cham, 2019. 79-113.

tax liability easier and less worrisome. It requires the tax rate calculations to be more
convenient and computation of the tax liability to be more understandable. Fourthly, the
principle requires the tax structure to be certain. It needs the tax structure to be uniform and
composed of clear and unambiguous terms and rates. Lastly, there needs to be an element of
neutrality in the tax structure proposed. This requires the structure to be neutral to both the
sides of the tax regime. It needs an adequate collection of the revenue for the revenue
collection and just burden of tax upon the taxpayer3.
The tax reform that has been implemented in Australia with respect to the investment
capital and text cutting fruits to become expensive and not adequately effective. The coalition
government as well as the BCA has pointed out the cut to company tax to have stimulated
investment and wages. The Investments was proved to be profitable at 25% rate but not as
profitable when charge at 30% rate. However, although it has enhanced the economic growth
but from the perspective of the domestic income it has been a disaster. It has the effect of a
considerable amount of reduction in the domestic income. The beneficiaries of this form of
taxation are the foreign investors and shareholders4.
The Labour Government has pointed out towards the difficulty that the present
government has been facing with respect to the low collection of tax revenue. Ken Henry, the
chairman of the NAB has suggested a broadening of the base relating to the raising of the
GST for the purpose of providing remedy to the same. However, it has been viewed by the
government to be difficult to implement as a same would lead to an oppressive policy for the
taxpayers. However, this has been suggested keeping in mind the possibility that the
Government has been facing with respect to the present system. It might lose its capacity for
3 Woldu, Mebrahtu, and Ghetnet Metiku Woldegiorgis. "Assessment of Principles and Practices of Good
Governance in Tax Administration." (2016).
4 Dickson, Jamie, “Company tax cuts are not the only growth tool in the box”, The Financial Review (Webpage,
2018) https://www.financialreview.com.au/story/6000820/company-tax cuts-are-not-the-only-growth-tool-in-
the-box /

the purpose of infrastructure funding and the maintenance of the system of health, welfare
and education. A capacity of the government to finance these activities is important for the
proper working of the same. It has also been pointed out that an enquiry relating to tax that is
required to be inclusive to be carried out for the purpose of studying different business
groups, communities, welfare sectors, state and federal government to achieve a tax program,
which is broad and would include strong tax reform package. It has suggested a form of
taxation that would require a wide scale reform of taxation that will not only focus on the tax
cuts related to the corporations. It needs to broaden the basis of the taxes instead of imposing
high rates of taxes on a particular sector. It would be highly desirable to increase the sources
from which the taxes can be collected so that together a huge amount of revenue as well as to
release the particular class of taxpayers from excessive tax burden5.
The cut to corporate tax has been a subject of a considerable amount of controversies and
has been widely criticised. However, the inadequacies of the same is required to be analysed
with respect to the features of good tax6. In the first instance, this system is required to have
the essence of equity in the same. This requires the tax structure to be just and fair for both
the payer of taxes and the collector of taxes7. However, this cannot be assured in case of this
form of tax platform as it has been charging unnecessary tax rates over a particular sector.
Although it has enhanced the economic growth but from the perspective of the domestic
income it has been a disaster. It has the effect of a considerable amount of reduction in the
domestic income. The beneficiaries of this form of taxation are the foreign investors and
shareholders8. The tax structure will be required to be efficient. It needs to be efficiently
designed to address both the needs of the revenue collection as well as the burden upon the
5 Brown, Andrew, "GST Changes 'Should Not Be Made Lightly,' Barr Says", The Canberra Times (Webpage,
2019) <https://www.canberratimes.com.au/story/6000820/gst-changes-should-not-be-made-lightly-barr-says/>
6 Herdegen, Matthias. Principles of international economic law. Oxford University Press, 2016.
7 Jones, Dow, "GST Changes ATO hunts tech giants", The Daily Telegraph (Webpage, 2018)
https://www.dailytelegraph.com.au/story/ gst-changes-ato-hunts-tech-giants /
8 Holmes, Kevin. International tax policy and double tax treaties: an introduction to principles and application.
IBFD, 2007.

taxpayer. Owing to the narrow base of this tax platform, it cannot assure the efficiency as a
tax system. It needs to broaden the basis of the taxes instead of imposing high rates of taxes
on a particular sector. It would be highly desirable to increase the sources from which the
taxes can be collected so that together a huge amount of revenue as well as to release the
particular class of taxpayers from excessive tax burden. The structure of the proposed tax
regime is required to be simple. This would make the calculation and the computation of the
tax liability easier and less worrisome. It requires the tax rate calculations to be more
convenient and computation of the tax liability to be more understandable. This has been
assured in this kind of tax as it has been imposed a narrow base and the tax rates are fixed and
simple. The principle requires the tax structure to be certain. It needs the tax structure to be
uniform and composed of clear and unambiguous terms and rates. This has been assured in
this form of taxation as this form of tax has been targeted upon particular sector and the tax
rates are quite definite. There needs to be an element of neutrality in the tax structure
proposed9. This requires the structure to be neutral to both the sides of the tax regime. It
needs an adequate collection of the revenue for the revenue collection and just burden of tax
upon the taxpayer. This has not been ensured in this form of taxation, as it puts both the
taxpayer and the tax collector both in a disadvantageous position. It imposes a high tax
burden upon the taxpayer as the revenue is required to be collected from a narrow tax base.
On the other hand, it has accounted for a very small tax collection as the base has been
narrow. Hence, this can be stated that this tax platform cannot be construed as a good tax in
its entirety. There are ample amount of adequacies in this form of tax platform10.
9 Jones, Dow, "Trump-style tax cuts ‘not needed’", Herald Sun (Webpage, 2018)
https://www.heraldsun.com.au/story/ trump-style-tax-cuts-not-needed /
10 Carr, David L., Karen J. Davies, and Thomas L. Davies. "The Comparative Importance of 10 Guiding
Principles Relevant to Tax Legislation." Journal of Accounting and Finance 18.8 (2018).

Conclusion
Hence, it can be concluded that even if the corporate tax cut has enhanced the economic
growth but from the perspective of the domestic income it has been a disaster. It has the
effect of a considerable amount of reduction in the domestic income. Owing to the narrow
base of this tax platform, it cannot assure the efficiency as a tax system. Owing to the narrow
base of this tax platform, it cannot assure the efficiency as a tax system. It needs to broaden
the basis of the taxes instead of imposing high rates of taxes on a particular sector. This has
been assured in this form of taxation as this form of tax has been targeted upon particular
sector and the tax rates are quite definite. There needs to be an element of neutrality in the tax
structure proposed. This tax structure has certain merits but the same has been cancelled
because of the narrow base of imposition and high rate of taxes. It can be remedied by
increasing the base of imposition.

Reference List
Brown, Andrew, "GST Changes 'Should Not Be Made Lightly,' Barr Says", The Canberra
Times (Webpage, 2019) https://www.canberratimes.com.au/story/gst-changes-should-not-be-
made-lightly-barr-says/
Carr, David L., Karen J. Davies, and Thomas L. Davies. "The Comparative Importance of 10
Guiding Principles Relevant to Tax Legislation." Journal of Accounting and Finance 18.8
(2018).
Carr, David L., Karen J. Davies, and Thomas L. Davies. "The Comparative Importance of 10
Guiding Principles Relevant to Tax Legislation." Journal of Accounting and Finance 18.8
(2018).
Dickson, Jamie, “Company tax cuts are not the only growth tool in the box”, The Financial
Review (Webpage, 2018) https://www.financialreview.com.au/story/company-tax cuts-are-
not-the-only-growth-tool-in-the-box /
Herdegen, Matthias. Principles of international economic law. Oxford University Press, 2016.
Holmes, Kevin. International tax policy and double tax treaties: an introduction to principles
and application. IBFD, 2007.
Holmes, Kevin. International tax policy and double tax treaties: an introduction to principles
and application. IBFD, 2007.
Hou, Yilin. "Principles for the Design of the Real Property Tax." Development, Governance,
and Real Property Tax in China. Palgrave Macmillan, Cham, 2019. 79-113.
Jones, Dow, "GST Changes ATO hunts tech giants", The Daily Telegraph (Webpage, 2018)
https://www.dailytelegraph.com.au/story/ gst-changes-ato-hunts-tech-giants /

Jones, Dow, "Trump-style tax cuts ‘not needed’", Herald Sun (Webpage, 2018)
https://www.heraldsun.com.au/story/ trump-style-tax-cuts-not-needed /
Woldu, Mebrahtu, and Ghetnet Metiku Woldegiorgis. "Assessment of Principles and
Practices of Good Governance in Tax Administration." (2016).