Flat tax: Australia

[Murdoch]

'A flat tax is a tax system with a constant marginal rate, usually applied to individual or corporate income' - Wikipedia

I'd like to start a thread on this topic in the Australian context. Tax is an often debated topic in the public arena, and something that seems to come up in conversation from time to time. I heard about the flat tax theory a few months ago, and have read variously around the topic, but would love to hear some informed opinions from those in the know about it's application elsewhere, as well as the arguments for and against its implementation in a country like Australia.

In Australia, tax collection and compliance is an expensive exercise, and we have a complex system in place to both collect, and give back tax to both individuals and corporations. I feel there is a simpler way, but am not necessarily sold on the flat tax, though it's simplicity certainly appeals.

Wiki for reference:
Flat tax: https://en.wikipedia.org/wiki/Flat_tax
Australia's personal income tax:https://en.wikipedia.org/wiki/Income_tax_in_Australia
The oft quoted Henry Tax review: https://en.wikipedia.org/wiki/Henry_Tax_Review
The Fair Tax: https://en.wikipedia.org/wiki/FairTax
The Australian Government Tax Office: https://www.ato.gov.au

Cheers in advance for your constructive comments:)

Murdoch

 

[Scandium]

I doubt this will be much different from every other discussion of this topic.

Some rich libertarians will say it's great. Everyone else will point out how it's regressive.