Crawford School of Public Policy TTPI Tax and Transfer Policy Institute Post-war tax reviews and the Asprey Blueprint TTPI - Working Paper 15/2020 November 2020 Paul Tilley Visiting Fellow Tax and Transfer Policy Institute, Crawford School of Public Policy The Australian National University Abstract After World War II, international attention turned to economic reconstruction and the transition back to peace-time. As Australia settled into the 1950s and 1960s ‘golden years’ there wasn’t an obvious imperative to tackle basic economic reform and tax design issues. Underlying structural problems were building, though, that would ultimately call for an economic reform agenda and tax would be part of that. This paper tracks these developments, looking at some limited tax reviews along the way but the main focus will be on the 1975 Asprey review which provided a blueprint for reform of the Australian tax system. Its recommendations for a capital gains tax, a fringe benefits tax, a foreign tax credit system, dividend imputation and a value added tax would take 25 years to implement. Keywords: tax, reform, economic, public finance, government * Sincere thanks to Greg Smith, Robert Carling, Geoff Leeper and Brant Pridmore as referees for the paper and to Professor Robert Breunig and Diane Paul at the TTPI for guiding the work and running the seminar on the paper. Author contact is
[email protected] THE AUSTRALIAN NATIONAL UNIVERSITY Tax and Transfer Policy Institute Crawford School of Public Policy College of Asia and the Pacific +61 2 6125 9318
[email protected] The Australian National University Canberra ACT 0200 Australia www.anu.edu.au The Tax and Transfer Policy Institute (TTPI) is an independent policy institute that was established in 2013 with an endowment from the federal government.