Recent trends in income redistribution in Australia: Can changes in the tax-benefit system account for the decline in redistribution?
journal contributionposted on 08.01.2019, 14:43 by Nicolas Herault, Fran Azpitarte
We examine trends in the redistributive impact of the tax-beneÖt system in Australia between 1994 and 2009 using a framework that allows us to separate the contributions of taxes, beneÖts and taxes and beneÖts combined. Furthermore, we identify the e§ect of tax-beneÖt policy reforms on income redistribution over the period. We Önd that after reaching a peak value in the late 1990s, the redistributive e§ect of taxes and beneÖts declined sharply. Although reforms to the tax-beneÖt system contributed to the decline in redistribution, their contribution was limited compared to the role played by the changes in market income distribution.
We acknowledge the support of a Faculty Research Grant from the Faculty of Business and Economics, University of Melbourne. Francisco Azpitarte would also like to acknowledge the Önancial support from the Brotherhood of St Laurence and the Spanish Ministerio de Ciencia e InnovaciÛn (grant ECO2013-46516-C4-2-R and ECO2010-21668-C03-03) and the Xunta de Galicia (10SEC300023PR).
- Social Sciences
- Communication, Media, Social and Policy Studies