Global Daily Tax News, Australia Should Lower Direct Taxes, IMF Says, (Oct 11, 2024)

Australia should reduce its reliance on direct taxes and review real estate taxes, the International Monetary Fund has recommended in its latest Article IV consultation report for the nation.

The report says, "Tax reforms should target system efficiency and fairness, reducing reliance on direct taxes and high capital costs that hinder growth."

It recommends tax breaks could be phased out to generate a more equitable and efficient tax system, noting in particular the capital gains tax discount and superannuation concessions.

The report recommends a comprehensive strategy to address housing affordability concerns. This, the Fund said, should include a review of property taxes, including tax concessions available to property investors, as well as stamp duty settings, to promote efficient land use.