Governments, Politics and Tax Policy (LAWS90353)

Tax policy is never just about economics—it’s a reflection of power, persuasion, and political priorities. This subject dives into the complex relationship between governments, politics, and taxation, uncovering how tax laws are shaped not only by sound policy principles but also by ideological agendas, electoral cycles, interest group lobbying and international pressures. We will explore how politics can both obstruct and enable reform, and how even well-intentioned tax measures can be derailed by competing forces. 

Through comparative analysis and case-based learning, we will examine real-world examples of both sound and problematic tax policy. Illustrative case studies could include the Trump administration’s deployment of tariffs for fiscal and geopolitical purposes and Australia’s intricate and distortionary tobacco excise system—both demonstrating how political agendas can override principles of good tax design. In contrast, the broad-based introduction of the GST in Australia and the use of environmental taxes in the Nordic countries may be explored as examples of more coherent and reasonably well-executed reform grounded in clear policy objectives. 

Students will be encouraged to critically assess whether tax policy should be shielded from politics or if political negotiation is essential to democratic legitimacy and reform success. The subject equips students with frameworks to evaluate policy through both a technical and political lens, preparing them for roles in government, academia, and advisory practice. 

The subject will be taught by Ali Noroozi, a former Inspector-General of Taxation, who brings extensive experience across the public sector, private practice and academia. Having been actively involved in the tax system and policy development from multiple perspectives, he offers a unique blend of theoretical insight and practical understanding. His first-hand experience in navigating the intersection of law, policy, and politics will enrich classroom discussions and provide students with a nuanced appreciation of the real-world complexities of tax policy. 

Indicative list of principal topics: 

• The political economy of taxation 
• Tax policy institutions and processes (e.g., Treasury, Parliament, lobbying) 
• International influences: trade, globalisation, and OECD frameworks 
• Public perception, media, and the rhetoric of fairness 
• Fiscal federalism and intergovernmental tensions