A Fairer Tax and Welfare System for Australia

Abstract

This research examines the Australian welfare system's inadequacies, particularly for JobSeeker and pension recipients, renters, single parents, and youth, who face high rates of poverty and financial stress. It proposes four budget-neutral reforms, primarily funded by reducing superannuation tax concessions or tightening means testing arrangements for the Age Pension and the Child Care Subsidy. These reforms could increase average household incomes by up to $3,800 annually for lower income households and reduce poverty rates by up to a third. The GST's regressive nature is highlighted, disproportionately impacting low-income households. The reforms target low income regions, enhancing equity while maintaining fiscal responsibility.