Today marks the 20th anniversary of the introduction of the GST – the last big reform to the Australian economy.
The GST is now so embedded in our tax system, looking back it’s hard to remember what all the fuss was about particularly in the context of the contemporary economic challenges we now face coming out of the COVID-19 pandemic.
It’s telling that we’re now talking about the importance of further tax reform which in many respects is the unfinished business from the GST, such as the distortionary and inefficient state taxes that remain in place including stamp duty.
The NSW Treasurer, Dominic Perrottet, will breathe new life into the debate today when he releases the findings of the Thodey review into federal-state financial relations at the National Press Club in Canberra. The Property Council will review this report carefully.
It’s an important discussion that needs to last longer than the daily news cycle. Meaningful tax reform is essential to delivering productivity gains and increased prosperity over the longer term.
Coming out of the COVID-induced recession will require some big and bold decisions – just as those that were made twenty years ago.