Tax Policy (LAWS70319)

All countries face the challenge of ensuring their tax systems are able to support effective governments in the global era of increasingly mobile capital and labour, and to establish effective, fair, simple and sustainable tax systems for the future. Australia has undergone a number of major tax reform exercises over recent decades and there is an ongoing public debate in Australia, as in other countries, about how to keep the tax system relevant in a changing international economy.

This subject engages with the fundamental fiscal policy issues of today for all levels of government. It will analyse the major tax bases available for governments, the interactions of tax law with the transfer system, the challenge of environmentally sustainable taxes and issues of tax law design, complexity and administration for the future. The subject is taught by Paul Tilley, a former Australian Treasury official with a long history of tax reform in Australia.

Principal topics include:

• Introduction to macroeconomics and fiscal policy
• Introduction to microeconomics and resource allocation policy
• Principles, objectives and main concepts in tax policy formulation
• The social, economic and historical – political contexts of tax policy formulation in Australia
• Major issues in tax reform in Australia, including in relation to fiscal policy and revenue adequacy, the major tax bases at each level of government, interactions within the tax-transfer system and issues of tax policy design cost, complexity and administration.