Overview
- The IMF’s Article IV review recommends raising the GST, reviving a resource revenue tax and removing income tax exemptions to fund lower company and labour taxes that strengthen incentives to invest and work.
- It urges efficiency drives in fast-growing programs such as the NDIS and aged care while protecting productive infrastructure investment.
- The fund warns state and territory debt is on track to exceed $1 trillion by decade’s end and proposes stronger federal–state fiscal anchors, including Parliamentary Budget Office oversight of state budgets.
- Housing advice includes shifting from stamp duties to broad land taxes and reviewing the capital gains tax discount and negative gearing, with savings redirected to new supply, while cautioning the new 5% deposit scheme could lift near-term prices.
- The IMF says the economy is navigating a soft landing but faces risks from global trade uncertainty, softer household spending and persistent inflation, and its report lands as the Productivity Commission tests a cash-flow business tax and the treasurer signals openness to investment incentives.