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Tax planning in Australia’s income tax system

Tristram Sainsbury & Robert Breunig

Agenda: a journal of policy analysis and reform2020https://doi.org/10.22459/ag.27.01.2020.03article
ABDC B
Weight
0.48

Abstract

Has income tax become voluntary in Australia? It appears that for some, nil or very low tax bills are a real prospect. Those with flexibility over how income is earned and motivation to achieve tax savings can structure their financial affairs to channel income through a mix of companies, trusts, assets, superannuation and family members over time. This article presents some of the simpler strategies available within the Australian tax system and shows how these are available to people across the income distribution. However, a tax system designed to encourage tax planning runs counter to core principles of good tax design of fairness, efficiency and simplicity. It also raises questions about the sustainability of Australia's tax system. Addressing the structural incentives to engage in tax planning requires a wholesale rethink about the design and role of income in Australia's tax system.

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https://doi.org/https://doi.org/10.22459/ag.27.01.2020.03

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@article{tristram2020,
  title        = {{Tax planning in Australia’s income tax system}},
  author       = {Tristram Sainsbury & Robert Breunig},
  journal      = {Agenda: a journal of policy analysis and reform},
  year         = {2020},
  doi          = {https://doi.org/https://doi.org/10.22459/ag.27.01.2020.03},
}

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Tax planning in Australia’s income tax system

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Evidence weight

0.48

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.33 × 0.4 = 0.13
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.