There is a growing sense of urgency around Australia's tax problems ahead of next week's budget.
Put simply, the government isn't pulling in enough tax to fund the basic services Australians expect. And that imbalance is only forecast to grow in the years ahead.
But the Albanese government has made a clear commitment to only the most modest of tax changes throughout this term of government.A number of experts argue that at some point soon, something is going to have to give.The budget has some big problems, but unlike other challenges this one was seen coming.
It essentially painted a picture of an ageing population, relying more on the government to fund increased healthcare, aged care and pension costs. "Twenty years ago, we had six and a half people who were working for every person who wasn't working," she said. "Having traversed the past 20 years, we now know that the tax to GDP ratio is going to have to increase," he said.The second problem is what he sees as an over-reliance on income tax.
But a range of politicians, lobby groups and tax experts argue the government should be capturing much more, particularly from gas exporters.The Grattan Institute's Kate Griffiths is among those suggesting changes to the "petroleum resources rent tax" , arguing a simple tweak to how gas is priced for tax purposes could deliver the budget billions in extra revenue.
And it suggests unpicking a Morrison-government deal done with resource-rich Western Australia, guaranteeing it receives back at least 70c in every dollar that the state pays in GST. Ms Spender said it is time those credits are wound back, while the government considers how to replace fuel tax revenue as more electric vehicles take to the road.
"Capital gains, windfall gains, super profits in Australia are taxed incredibly lightly. It's almost as if they're sacrosanct," he said. "Probably paying off HECS debt, burdened with a trillion dollars or more of public debt, burdened with having to address the increasing costs of climate change.
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