The economic impact of COVID-19 and the steps taken to support businesses and individuals through the pandemic have resulted in ballooning government expenditure and shrinking government revenue. Even prior to this, Australia’s tax system was ill-equipped
to support a growing economy due to a number of structural factors including an over-reliance on personal and corporate taxes. Efficient revenue collection will be necessary for economic recovery and budget repair in this environment, and reform to consumption tax is a clear option for investigation.
Our latest projections show that reform of the Goods and Services Tax could deliver Australia a revenue boost of between $14 billion and $40 billion, stimulating productivity and economic growth and enabling the abolition of less efficient taxes.
Source – PwC