Tax Reforms in Australia

Essay 2: Summative Academic Essay

Students are required to write a summative academic essay of 1,500 words, answeringone of the essay questions below.For this essay,it is expected that you now comprehend the standard of work required to write a sound academic essay. Employingthe lessons and standards learnt from Essay 1,and drawingon the ideas and concepts taught in this unit, answer one (1) of the following essay questions:

  1. There has been much talk of ‘disruptive technologies’ by Prime Minister Malcolm Turnbull recently,citing Uber and AirBnB in particular.

What does it mean for technology to be ‘disruptive’ and what is it that is being ‘disrupted’? Ensure you refer to regulatory frameworks in your answer.

  • A recent move by the Queensland Parliament to re-regulate the sugar industry has been referred to as ‘sugar socialism’ by some and ‘economic lunacy’ by others. What is ‘socialist’ about the

legislation and why might such a move be considered ‘economic lunacy’?

  • Uber has disrupted the taxi industry in Australia.Are the reforms introduced in the ACT

and NSW sufficient to compensate taxi drivers for the disruption caused by Uber? What societal changes have enabled the rise of ride-sharing businesses such as Uber? Are these reforms good for the economy? Why or why not?

Taxation reform in Australia will be crucial in comingyears to ensure the Commonwealth has sufficient revenue to manage its responsibilities. Yet recent budgets have maintained the status quo. Why is it so difficult for Australian governments to implement major taxation

governments to implement major taxation

reform? Who are the potential winners and losers? To what extent do the interest groups involved in the debate control the agenda?

5. Australian workplace  relations reform inthe late twentieth century included a move away from national and state-based awards to an enterprise bargaining system.Moves by the Howard Government to introduce an individual workplace bargaining system not only failed, but were largely blamed for Prime Minister Howard losing his seat at the 2007 election. Discuss the rationale for workplace relations reform. Who are the winners and losers? Why are Australian voters reluctant to

accept an individual workplace bargaining system?

In the last few years, Australia has experienced uninterrupted economic growth that has made it one of the nations with the highest living standards in the world. Despite this, the country experiences the challenge of maintaining and enhancing the living conditions and economic growth in the future (Australian Government 2015). Government reviews suggest that enhanced productivity and high workforce participation are fundamental to future economic development. Additionally, tax reforms are crucial for the government to increase employment and increase business opportunities. Main challenges have been experienced in the taxation system due to the intense changes in the global economy. Various reviews suggest that the move to a digital economy, an increase in mobile investment, and a greater labor mobility are the causal agents of the difficulties in the tax system. The issues eminent in the economy include weakened tax system to raise revenue and the increased cost of taxation. Technological changes mainly affect revenue collected from multinational firms that operate in various jurisdictions, making it difficult to determine where they contribute to the value of the economy. Additionally, the digital economy enhances personal importation of goods and services, limiting indirect taxes (Australian Government 2015). The increase in capital mobility in Australia is likely to deter investment in the corporate sector, leading to lower wages and prosperity. Additionally, high effective marginal tax rates can discourage the workforce participation as individuals try to reduce the tax burden.

            According to Ernst & Young (2014), there are constant concerns raised by the community for the government to carry out tax reforms. Despite this, the direction to carry out reforms is curbed by the following concepts developed by  Ernst & Young (2014). A long development period is useful for carrying out tax reforms. Ernst & Young (2014) suggest that it is considerable for a long-term strategic review of the tax system. Such an approach allows the implementers to identify all options and issues that might arise if immediate implementation was carried out. Creating a deep public interest and lengthy debate is important to develop a successful reform. Improvements that lack a public discourse are likely to fail. Fundamentally, the reforms that lack a history are expected to face rejection. Considering the continuing globalization of the economy in Australia, it presents a challenge in the implementation of a new tax system that the people are not familiar with in the economy.             Economic crises can sometimes promote the enactment of new reforms, but surprise taxation might raise concerns…

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