Australia’s Tax Law Policy of the Past and that of the Post Digital Revolution

Tax policy advocates have long suggested an optimal tax system would be the most efficient tax regime but until recently it has been unobtainable. Technological developments increase the feasibility of this tax. The first half of this article explains how Australian tax policy has developed to date by looking at government commissioned and sanctioned reviews of the tax system. What becomes apparent is that reform measures aimed at achieving the tax policy goals of efficiency, equity and simplicity often involve a lowering of tax rates and a comprehensive tax base system. The second half then explores the changes that have made the prospects of an optimal tax system more feasible and explores how evolving policy advice has moved in the direction of optimal tax theory. It is argued that this may involve proposals for reform centered on a less comprehensive tax base, increased tax rates as well as other departures from the traditional tax reform discussion