Effective marginal tax rate trends and post GST reforms in Australia

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Effective marginal tax rate trends and post GST reforms in Australia
Tuesday 8 August 2017, 12.15-1.30pm

Seminar audio available

Since the introduction of the GST in 2000 Australia’s tax and transfer system has undergone incremental change across a wide range of social security payments and the personal income tax system. This paper will consider the impacts on workplace incentives via the estimation of effective marginal tax rates (EMTR) in the year 2001-02 and compare with current policy settings in 2017-18. The EMTR’s will be estimated using actual individual data in the ANU policy simulator, PolicyMod, which is based on ABS survey data. The 2001-02 policy world will be indexed to 2017-18 for consistency purposes in line with observed economic parameters for inflation and wages growth.

During this period there has been significant changes to family payments, parenting payments, personal income taxation and childcare policy. This paper focuses on EMTRs of the working age population to gain a better understanding of how policy change over the past decade and a half has helped or hindered the incentives to work. The modelling will provide results for key working age groups such as single parents, secondary earners in couple relationships with children and also consider results by family income levels.

Ben Phillips has 20 years of experience in economic and public policy analysis work in Australia. Ben’s expertise is in the development of microsimulation models for the purpose of analysing tax and transfer systems.

Further details and registration is available here.

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