Treasurer Jim Chalmers has conceded Australia’s tax system is “imperfect”, declaring he’s “won support” for broader tax reform that addresses intergenerational inequity at the government’s three-day economic reform summit in Canberra.<\/p>\n
Mr Chalmers told reporters the “hard work begins now” after consensus was reached on 10 key priorities, from modernising government services and turbocharging housing supply to making artificial intelligence a national focus.<\/p>\n
Wrapping up the round table on Thursday evening, Mr Chalmers thanked participants, saying they had come with “good will and good ideas”, but the challenge was now turning those suggestions into action with the input of the cabinet.<\/p>\n
For three days, business leaders, union chiefs and bureaucrats were locked in the cabinet room, away from their phones and prying journalists, and fuelled by sushi and sandwiches, as they debated how to lift Australia’s flagging productivity.<\/p>\n
The discussions were described by those in the room as constructive, with broad agreement reached on needing to shore up the sustainability of the budget, addressing intergenerational inequity in the tax system, streamlining approvals for housing projects and being forward-focused on artificial intelligence.<\/p>\n
After tax reform loomed large as the prickliest issue between attendees on day three, Mr Chalmers would not rule out tax reform, including a potential road-user charge, being introduced before the next federal election.<\/p>\n
He confirmed the government has landed on three priority areas for consideration on tax: intergenerational equity, incentivising business investment and simplifying the broader system as demographics change, including an ageing population.<\/p>\n
“There was a lot of support for trying to put a structure around the work that we will now do as a government \u2026 to really try and address three objectives in the tax system,” Mr Chalmers said.\u00a0<\/p>\n
“The first one is about a fair go for working people and including in inter-generational equity terms.<\/p>\n
“The second one was about an affordable, responsible way to incentivise business investment, recognising the capital deepening challenge that we have in the economy.<\/p>\n
“And then thirdly, how we make the system simpler, more sustainable so that we can fund the services that people need.”<\/p>\n
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Mr Chalmers said there was broad agreement around the productivity roundtable for directions on tax reform. (ABC News: Ian Cutmore)<\/p>\n
ABC News understands that Treasury and the Productivity Commission will be tasked with policy development in these areas in the months ahead.<\/p>\n
In June, Treasurer Jim Chalmers told the National Press Club<\/a> that “no sensible progress can be made on productivity, resilience or budget sustainability without proper consideration of more tax reform”.<\/p>\n