IMF Urges Australia to Overhaul Tax System Amid Fiscal Pressures and Economic Risks

• The IMF urges Australia to undertake comprehensive tax and expenditure reforms to improve efficiency, equity, and sustainability.
• Australia faces economic risks from slower growth, higher inflation, an ageing population, climate change, and rising health costs.
• The IMF recommends increasing and broadening the GST, lowering corporate income tax, and reducing inefficient state taxes like stamp duty.
• Rising state spending, especially on infrastructure and cost-of-living support, is causing fiscal disparities and could impact national borrowing costs.
• The IMF highlights the need to revisit fiscal equalisation and address growing fiscal gaps between resource-rich and other states.

Source: accountingtimes.com.au

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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