GST and the Changing Incidence of Australian Taxes: 1994-95 to 2001-02

Neil Warren, Ann Harding, Rachel Lloyd

    Research output: Contribution to journalArticle

    Abstract

    The past decade has seen major reforms to the design of Australia’s tax system. This paper outlines these reforms and examines their distributional impact across the household income spectrum.

    While the authors estimated tax incidence in Australia prior to the July 2000 (ANTS) reforms (which included the introduction of a 10% GST), no comprehensive estimates of the impact of these tax reforms have been made since that date. This paper addresses this deficiency.

    It finds that the personal income tax has become more income redistributive and more progressive over the period 1994-95 to 2001-02. However, the broad-based indirect tax reforms implemented over this period have become marginally more regressive and, because they have become more important as a revenue source, they now impact more adversely on post-tax income distribution. In the case of taxes other than the personal income tax and the reformed indirect taxes, they have become less regressive and have increased in importance. Overall, the progressivity of the Australian tax system and the distribution of post-tax income appears to have remained remarkably stable over the period.
    Original languageEnglish
    Pages (from-to)117-149
    Number of pages33
    JournaleJournal of Tax Research
    Volume3
    Issue number1
    Publication statusPublished - 2005

    Fingerprint

    Tax
    Indirect taxes
    Tax system
    Personal income tax
    Tax reform
    Income tax
    Income
    Distributional impacts
    Tax incidence
    Revenue
    Household income
    Income distribution
    Progressivity

    Cite this

    Warren, N., Harding, A., & Lloyd, R. (2005). GST and the Changing Incidence of Australian Taxes: 1994-95 to 2001-02. eJournal of Tax Research, 3(1), 117-149.
    Warren, Neil ; Harding, Ann ; Lloyd, Rachel. / GST and the Changing Incidence of Australian Taxes: 1994-95 to 2001-02. In: eJournal of Tax Research. 2005 ; Vol. 3, No. 1. pp. 117-149.
    @article{b6dfc50181e8418e9274b1bd42a60df4,
    title = "GST and the Changing Incidence of Australian Taxes: 1994-95 to 2001-02",
    abstract = "The past decade has seen major reforms to the design of Australia’s tax system. This paper outlines these reforms and examines their distributional impact across the household income spectrum.While the authors estimated tax incidence in Australia prior to the July 2000 (ANTS) reforms (which included the introduction of a 10{\%} GST), no comprehensive estimates of the impact of these tax reforms have been made since that date. This paper addresses this deficiency. It finds that the personal income tax has become more income redistributive and more progressive over the period 1994-95 to 2001-02. However, the broad-based indirect tax reforms implemented over this period have become marginally more regressive and, because they have become more important as a revenue source, they now impact more adversely on post-tax income distribution. In the case of taxes other than the personal income tax and the reformed indirect taxes, they have become less regressive and have increased in importance. Overall, the progressivity of the Australian tax system and the distribution of post-tax income appears to have remained remarkably stable over the period.",
    author = "Neil Warren and Ann Harding and Rachel Lloyd",
    year = "2005",
    language = "English",
    volume = "3",
    pages = "117--149",
    journal = "eJournal of Tax Research",
    issn = "1448-2398",
    publisher = "Australian School of Business, University of New South Wales",
    number = "1",

    }

    Warren, N, Harding, A & Lloyd, R 2005, 'GST and the Changing Incidence of Australian Taxes: 1994-95 to 2001-02', eJournal of Tax Research, vol. 3, no. 1, pp. 117-149.

    GST and the Changing Incidence of Australian Taxes: 1994-95 to 2001-02. / Warren, Neil; Harding, Ann; Lloyd, Rachel.

    In: eJournal of Tax Research, Vol. 3, No. 1, 2005, p. 117-149.

    Research output: Contribution to journalArticle

    TY - JOUR

    T1 - GST and the Changing Incidence of Australian Taxes: 1994-95 to 2001-02

    AU - Warren, Neil

    AU - Harding, Ann

    AU - Lloyd, Rachel

    PY - 2005

    Y1 - 2005

    N2 - The past decade has seen major reforms to the design of Australia’s tax system. This paper outlines these reforms and examines their distributional impact across the household income spectrum.While the authors estimated tax incidence in Australia prior to the July 2000 (ANTS) reforms (which included the introduction of a 10% GST), no comprehensive estimates of the impact of these tax reforms have been made since that date. This paper addresses this deficiency. It finds that the personal income tax has become more income redistributive and more progressive over the period 1994-95 to 2001-02. However, the broad-based indirect tax reforms implemented over this period have become marginally more regressive and, because they have become more important as a revenue source, they now impact more adversely on post-tax income distribution. In the case of taxes other than the personal income tax and the reformed indirect taxes, they have become less regressive and have increased in importance. Overall, the progressivity of the Australian tax system and the distribution of post-tax income appears to have remained remarkably stable over the period.

    AB - The past decade has seen major reforms to the design of Australia’s tax system. This paper outlines these reforms and examines their distributional impact across the household income spectrum.While the authors estimated tax incidence in Australia prior to the July 2000 (ANTS) reforms (which included the introduction of a 10% GST), no comprehensive estimates of the impact of these tax reforms have been made since that date. This paper addresses this deficiency. It finds that the personal income tax has become more income redistributive and more progressive over the period 1994-95 to 2001-02. However, the broad-based indirect tax reforms implemented over this period have become marginally more regressive and, because they have become more important as a revenue source, they now impact more adversely on post-tax income distribution. In the case of taxes other than the personal income tax and the reformed indirect taxes, they have become less regressive and have increased in importance. Overall, the progressivity of the Australian tax system and the distribution of post-tax income appears to have remained remarkably stable over the period.

    M3 - Article

    VL - 3

    SP - 117

    EP - 149

    JO - eJournal of Tax Research

    JF - eJournal of Tax Research

    SN - 1448-2398

    IS - 1

    ER -