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The latest issue of the Australian Tax Review (Volume 54 Part 1) contains the following material:

EDITORIAL – General Editors: Dale Pinto and Kerrie Sadiq

Articles

The Principles of Good Tax Administration – Ruth Owen

This article focuses on the importance of good tax administration and what it takes to deliver good public administration within the context of the Australian tax system. As the Inspector-General of Taxation and Taxation Ombudsman (IGTO), I see many examples of where tax administration goes wrong. I am keen to start 2025 with a renewed focus on how we get tax administration right, and continuously improving. With cost of living pressures continuing to be front of mind for all taxpayers – be they individuals or businesses – and debt collection being front of mind for the Australian Tax Office, then I propose that we need heightened attention on getting the administration right, on behalf of the community. Good administration will result in more taxpayers perceiving the system to be fair and reasonable, which will build community confidence, drive higher compliance and minimise the cost to both taxpayers and government.

Progressivity of Individuals Income Tax in Australia: Long-term Trends – Paul Tilley

In aggregate, individuals income tax “cuts” over the past half century in Australia have broadly returned bracket creep, keeping individuals income tax at around half of total Commonwealth tax revenue. This article assesses the question of what, if any, impact that has had on the progressivity of individuals income tax. The article provides a survey of the main methods that have been used to measure the progressivity of a tax and the results that have been previously estimated for Australia. It also presents new estimates for changes in the progressivity of Australia’s individuals income tax since 1942 using a methodology based just on the legislated tax rate scale. Overall, these estimates suggest that individuals income tax progressivity decreased in the post-war period but has been relatively stable over the past 40 years – although with some notable shorter-term fluctuations.

Reflections on TPB Investigation Statistics Following the Crackdown on Tax Practitioner Misconduct – Elizabeth Morton and Ken Devos

Following the Independent Review of the Tax Practitioners Board (TPB) in 2019 and highprofile scandal in early 2023, Treasury announced a significant reform agenda. As part of this package, legislation introduced was designed to increase the powers of the regulators and strengthen regulatory arrangements. Following initial work on the TPB Review by Devos, Morton, Curran and Wallis focusing on TPB recommendations relating to the Code of professional conduct, investigations and sanctions, this study builds on those findings with a narrow focus on TPB investigation and sanction activities. This study examines the longitudinal data in the TPB Annual Reports for the period 2018–2023 to understand the investigative activities of the TPB, and their outcomes. This study canvases information from the sources of complaints referrals, Board Conduct Committee matters examined and decisions and the Tax Agent Services Act 2009 (Cth) breach allegations. The findings offer independent insights to inform both the TPB and Government at a critical juncture created by recent scandal.

The Application of General Anti-avoidance Rules to Offshore-securitisation and Subsequent Derivative Products: An Australian and South African Case Study –Lindelwa Ngwenya

Tax avoidance using complex financial products has been an issue of preoccupation for academics, regulators, and tax administrators alike. Upon the unsuccessful application of specific anti-avoidance rules, the curtailing of revenue-corrosive, avoidant practices relies on the successful application of general anti-avoidance rules. These rules serve as a measure of last resort. However, due to the lack of certainty in the application of these provisions, this said application leaves administrators, and taxpayers in a precarious position. This article considers the application of general anti-avoidance rules to offshore-securitisation transactions designed to supplant dividend distribution in two jurisdictions, Australia, and South Africa. An argument is made for the development of specific anti-avoidance provisions targeted at abusive offshore securitisation. The article applies a hypothetical case study designed from an analysis of a collection of securitisation agreements.

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