OECD Urges Australia to Increase GST and Superannuation Tax to Address Budget Deficit

• The Organisation for Economic Co-operation and Development (OECD) has recommended that Australia increase the Goods and Services Tax (GST) and tax superannuation earnings for retirees.
• The OECD suggests removing GST exemptions on private school fees and healthcare, while compensating low-income households for the increased revenue from the consumption tax.
• The OECD also recommends reducing tax concessions on private pensions and capping pre-tax contributions to align their tax treatment with other forms of saving.
• The OECD highlights the risk of a higher reliance on income tax as the population ages and suggests raising revenue through reducing exemptions and potentially raising the GST rate.
• The OECD notes that Australia’s GST rate is one of the lowest among analyzed countries and suggests eliminating exemptions for education, healthcare, food, water, sewerage, and drainage.
• The additional revenue from a broader GST and taxing super earnings could be used to increase the JobSeeker unemployment benefit and expand paid parental leave.

Source: afr.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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