Tax Policy (LAWS70319)

All governments need robust tax systems capable of funding them. Modern tax systems have also taken on other public policy roles, in income distribution and economic activity, and become integral to governments’ social and economic policies. Tax policy design thus entails a challenging mix of economic, social, legal, accounting and administrative policies - which has become more complex in a world of increasingly mobile capital and labour.

This subject looks at Australia’s tax system and experience with reform over recent decades, comparing it with other countries. The subject will analyse the available tax bases, the interactions between the tax and transfer systems and issues of tax law design and administration.

Principal topics include:

• Introduction to economics, fiscal policy and the processes of government
• Principles, objectives and main concepts in tax policy formulation
• Analysis of the main tax bases in Australia
• Major issues in tax reform in Australia, including in relation to revenue adequacy, economic efficiency, social equity and administrative simplicity
• Interactions between the tax and transfer systems
• The potential of the tax system to pursue environmental objectives