Tax reform for a fairer society

November 3, 2025

“Remember, ladies and gentlemen,” I recall English comedian Max Miller saying, “it makes no difference whether you’re rich or whether you’re poor – it’s nice to be rich.” He could have been speaking of the Australian taxation system today.

Income-earners carry the bulk of the taxation load. Those owning capital get taxation relief with negative gearing for investment homes and a 50% discount on capital gains. The system is skewed in their favour. This is fundamentally inequitable.

Income tax will be a fundamental part of any taxation system, but the tax burden can be spread more widely to ease the employee’s tax load and foster benefits for society by:

Phasing out negative gearing and the capital gains tax discount;

Reforming the Petroleum Resource Rent Tax such that producers pay royalties in real time for the gas that they export;

And by introducing:

A carbon tax, so emitters pay for their pollution and its impacts.

An inheritance tax, generating taxation revenue without impacting anyone’s current financial position.

A sugar tax, to help address the growing issues of obesity and diabetes.

Those with wealth are getting an easy ride on the shoulders of wage-earners. Time to redress the fiscal balance for a fairer society.