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Tax Mix

6.41. Since tax drift mainly concerns personal income tax, a further effect of inflation is to increase the proportion of tax revenue attributable to income tax. As recently as 1963–64 personal income tax raised only $1,271 million, or some 32 per cent of all tax revenue; ten years later, in 1973–74, the figure had reached $5,490 million, which is nearly 40 per cent of tax revenue and puts Australia almost at the top among OECD


  ― 49 ―
countries in terms of reliance on personal income tax. It is the Committee's view, already expounded in Chapter 5, that less, not more, reliance should be placed on personal income tax.

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