A more balanced critique of taxation concessions

Robert Carling (Centre of Independent Studies and formerly a Deputy Secretary in NSW Treasury) has written a very balanced critique of the purpose of taxation concessions, Right or rort? Dissecting Australia’s tax concessions, noting that many of these are actually significant structural features of the tax system which improve the effect of taxes on the efficient allocation of resources in the economy.

Extending dividend benefits to foreign investors may address competition concerns

This article by John Taylor (Professor, School of Taxation and Business Law at UNSW) is one of the more insightful considerations given to the issue of Australia's company tax. It was originally published in The Conversation.

Broader base, not a higher rate the answer for GST reform

This article by Dale Boccabella and Kathrin Bain (both from the School of Taxation and Business Law at UNSW) is on the options for GST reform (originally published in The Conversation).

The take-away message is that the first priority for reform should be to widen the GST and that this (rather than a rate increase) would be consistent with the broad thrust of tax reform over the last few decades.

The Commonwealth can change the GST without the States

This is a concise and clear article by Dale Boccabella and Kathrin Bain (both from the School of Taxation and Business Law at UNSW) on the legal effects of the GST lock-in mechanism (originally published in The Conversation). It explains why the "requirement" for the Commonwealth to gain the agreement of all the States prior to amending the GST legislation is not legally binding. Rather it is a "soft law" which only guides the behaviour of the Executive.

Higher education changes: the case in favour

A few weeks ago I republished an excellent article on the Government's poorly conceived and executed higher education "reforms" from Stephen Parker. His was a cogent and spirited attack on "ideology in search of a problem". The justifications of the reforms by the government amount to little more than confused rhetoric, attempting to "spin" away the mean-spirited dogma.

John Quiggin has also provided a spirited and cogent attack on the "reforms".

In contrast, Ian Young (Vice Chancellor at ANU) attempted to fill the intellectual void with a flawed attempt in support of the reforms in front of the National Press Club a month or so ago.

Now Glyn Davis (Vice Chancellor at Melbourne University) has made an attempt to justify the elite universities' support for the reforms - it seems it is all simply a desperate attempt to shore up funding in the face of the continuing erosion of Commonwealth funding. Well, at least he's honest! Nevertheless, he makes some useful points.

Expanding the GST would hit the ‘middle’ and women the hardest

Patricia Apps is a professor of Public Economics at the University of Sydney, and one of Australia's best tax policy analysts. This article on the redistributive effects of the GST (originally published in The Conversation) highlights the negative consequences for tax incidence and economic participation from broadening the GST.

While I don't disagree with her analysis, I have a relatively minor quibble about her policy conclusion—broadening the GST base (and not increasing the rate) to improve the efficiency of the tax is worth doing for its own sake. However, we need to acknowledge Professor Apps' analysis and accompany GST broadening with reforms to the income tax and transfers system which, not only address the redistributive problems of broadening the GST, but also improve the progressivity in the tax and transfer system and remove the distortionary effects of that system on workforce participation.

What Professor Apps' article does highlight, is how poor is the quality of taxation analysis and debate in this country. To the extent that she shines a light on simplistic (even sloganistic) notions of tax reform, her article is commended for your reading pleasure.

Boards fail on strategic focus

An interesting article in the January 2015 edition of The Harvard Business Review by Dominic Barton and Mark Wiseman, Where Boards Fall Short: most boards aren’t delivering on their core mission of providing strong oversight and strategic support for management’s efforts to create long-term value.