Overview
- For the first time since federation, federal, state and local governments are on track to collect more than $1 trillion in taxes, charges and fees this financial year.
- Senior politicians and policymakers argue the federation’s design is dragging on growth and worsening housing and health pressures, citing costly duplication such as up to 36 payroll tax regimes and inconsistent safety rules.
- Treasurer Jim Chalmers has described today’s intergovernmental setup as a handbrake on the economy and is pursuing targeted steps in areas like occupational licensing, planning and road user charging.
- Prime Minister Anthony Albanese declined to consider tax reforms proposed by the Productivity Commission and unions at the August Economic Reform Roundtable.
- Critics including the Institute of Public Affairs’ Daniel Wild say federal immigration settings have strained state housing and infrastructure, calling the system “completely broken.”