Australia is being urged to revamp its tax system by eliminating capital gains and superannuation concessions worth billions, according to the International Monetary Fund (IMF). The IMF emphasized the need to reduce personal income and company tax rates by removing these breaks to enhance system efficiency and fairness. With over $70 billion in annual savings, the removal of these tax breaks could lead to a more equitable and efficient tax system.
The report also discussed the impact of capital gains tax discount and superannuation concessions on housing prices and supported a comprehensive strategy to address the issue. Additionally, the IMF endorsed the Reserve Bank’s current interest rate settings but cautioned against excessive cost-of-living relief that could lead to inflation.
