logo logo
Donate
    • Membership
    • Donate
  • Social Justice
    • Racial Justice
    • Climate Justice
    • Disability Justice
    • Economic Justice
    • Health Justice
    • Immigration
    • LGBTQ+
  • Civic News
  • Nonprofit Leadership
    • Board Governance
    • Equity-Centered Management
    • Finances
    • Fundraising
    • Human Resources
    • Organizational Culture
    • Philanthropy
    • Power Dynamics
    • Strategic Planning
    • Technology
  • CONTENT TYPES
  • Leading Edge Membership
  • Newsletters
  • Webinars

Australia Takes on Tax Reform: Lessons We Can Learn

Martin Levine
January 28, 2015

 

Australia taxes

January 24, 2015; The Age (Melbourne, Australia)

Two recently released position papers frame issues to be faced by the Australian government as it considers revisions to its tax code will resonate with American readers: the Australian Council of Social Services’ (ACOSS) “Tax: Are we paying our fair share?” and “The Future of Tax,” released in December by Business Council Australia (BCA). Both recognize that a changing economic and demographic landscape requires revisions to national tax policy, but they differ widely in their assessment of the direction that should be taken.

Changes to tax policy must balance the concern for tax equity with ensuring the national economy can continue to grow and compete in the international marketplace. Both organizations acknowledge the important role that government must play and that sufficient revenues are necessary to meet this responsibility. But where the right “sweet spot” is that balances these two is where the issue is joined and where the interests of the social and human services community will clash with the interests of business:

“A vital principle of the social compact between taxpayers and Government is that the level of tax we pay is based on our resources or ability to pay, and that people in similar circumstances should as far as possible be taxed in a consistent way.” (ACOSS, p.4)

Sign up for our free newsletters

Subscribe to NPQ's newsletters to have our top stories delivered directly to your inbox.

By signing up, you agree to our privacy policy and terms of use, and to receive messages from NPQ and our partners.

ACOSS sees an existing Australian tax system that falls well short of meeting this standard. Its analysis of the total tax burden shows that the effective tax burden is equal to “a flat rate tax on incomes of around 25 percent on all income groups.” Looking at the same data, BCA concludes that the current “tax and transfer system is well targeted and highly redistributive and makes a substantial contribution to Australia having a fair society by substantially reducing inequality.” (BCA, p.5)

Both organizations recognize that changes to existing tax policy should not do harm, but differ on what that harm would look like. ACOSS counsels that the impact of policy change should be viewed in terms of “economic costs, and social and environmental harm. The tax system should support and not undermine decisions to engage in paid work, save, invest and support economic growth that are economically efficient and underpin our future prosperity. It should contribute to, and not detract from, affordable housing for all.” BCA’s perspective sees harm in any change that will not benefit business operations, focusing attention on changes that would reduce the overall tax burden on corporations and individuals and simplify the system.

As in the United States, the challenge to the Australian government is establishing a process that allows the diverse interests illustrated in these two reports to be engaged and believe that the outcomes have been arrived at in a fair and honest process:

“Tax reform cannot be rushed. It takes time to identify and agree on the problems that reform should resolve, and to decide on a strategy for reform. Governments must lead tax reform but must do this in genuine collaboration with key stakeholders and the wider community. The process of reform needs to be open and transparent, enabling-government agenda, nor cherry-picking of reforms. It will require genuine engagement and wide public debate in the lead up to developing options for reform, with a view to developing a comprehensive, integrated tax reform package.” (ACOSS, p. 5)

Our nation’s leaders might well keep their eyes on the efforts in Australia to see if there is a better model than our current method of backroom deal-making to reach legislative outcomes in an area of such vital interest to our community.—Marty Levine

About the author
Martin Levine

Martin Levine is a Principal at Levine Partners LLP, a consulting group focusing on organizational change and improvement, realigning service systems to allow them to be more responsive and effective. Before that, he served as the CEO of JCC Chicago, where he was responsible for the development of new facilities in response to the changing demography of the Metropolitan Jewish Community. In addition to his JCC responsibilities, Mr. Levine served as a consultant on organizational change and improvement to school districts and community organizations. Mr. Levine has published several articles on change and has presented at numerous conferences on this subject. A native of New York City, Mr. Levine is a graduate of City College of New York (BS in Biology) and Columbia University (MSW). He has trained with the Future Search and the Deming Institute.

More about: Global IssuesNonprofit NewsPolicyTax Policy

Our Voices Are Our Power.

Journalism, nonprofits, and multiracial democracy are under attack. At NPQ, we fight back by sharing stories and essential insights from nonprofit leaders and workers—and we pay every contributor.

Can you help us protect nonprofit voices?

Your support keeps truth alive when it matters most.
Every single dollar makes a difference.

Donate now
logo logo logo logo logo
See comments

You might also like
How an International NGO Plans to Fight the Digital Divide with a Satellite Company
Aashna Miharia
Summer Camp in a Climate-Changed World
Alison Stine
IRS Weakens Johnson Amendment—Nonprofits Push Back
Isaiah Thompson
New York and Other States Move to Fix Nonprofit Contracting Delays
Lauren Girardin
Crafting Elements of a 2029 Agenda: A New Fair Deal
Ann Lehman
Trump Budget Bill Spells Trouble for Nonprofits
Isaiah Thompson

Upcoming Webinars

Group Created with Sketch.
July 24th, 2:00 pm ET

Organizing in Divided Times

The Relational Infrastructure We Need to Protect Democracy

Register
Group Created with Sketch.
September 24th-25th, 2:00 pm ET

Advanced QuickBooks for Nonprofits

Expert Guidance for Experienced QuickBooks Users

Register

    
You might also like
An "internet" sign hangs on a building's exterior.
How an International NGO Plans to Fight the Digital Divide...
Aashna Miharia
Two young people watch from shore as a canoe with a child in a life vest enters a lake.
Summer Camp in a Climate-Changed World
Alison Stine
A view of the inside of a small church, with a wooden ceiling and stained glass windows.
IRS Weakens Johnson Amendment—Nonprofits Push Back
Isaiah Thompson

Like what you see?

Subscribe to the NPQ newsletter to have our top stories delivered directly to your inbox.

See our newsletters

By signing up, you agree to our privacy policy and terms of use, and to receive messages from NPQ and our partners.

  • About
  • Advertise
  • Careers
  • Contact
  • Copyright
  • Donate
  • Editorial Policy
  • Funders
  • Submissions

We are using cookies to give you the best experience on our website.

 

Non Profit News | Nonprofit Quarterly
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.