Is Australia a High Taxing Nation?

by Tristan Ewins

The accusation recently published in The Australian, that Australia is a high taxing nation, deserves serious scrutiny. While it is true that income tax in Australia is relatively high when compared with some OECD countries, it is also true that many other countries with low income tax burdens have very high indirect tax burdens. (eg: taxes such as the GST) The consequences for equity, here, are notable – with regimes of high indirect tax leaving the poor and average income earners worse off than would be the case under a more progressive regime of income-based and capital-based taxation.

The author is a long-time rank and file member of the Victorian Socialist Left of the ALP.