Rising tax policies spark discussion on revenue loss and public behaviour shifts with Dr Steven Enticott
Australia’s rising tax burden may be creating unintended consequences that are reshaping taxpayer behaviour and reducing government revenue, according to tax expert Dr Steven Enticott.
He argues that high tobacco taxes have failed to curb smoking, instead fuelling a thriving illicit market that now accounts for an estimated 80 to 95% of tobacco sales.
As a result, the government is believed to be missing out on between $8 billion and $10 billion in revenue.
Dr Enticott says the impact extends well beyond tobacco, with more Australians restructuring businesses, moving assets offshore and seeking legal ways to minimise tax.
He also questions recent claims of strong business creation, suggesting much of the increase reflects business restructures rather than genuinely new enterprises.
Looking ahead, he warns policymakers should carefully consider how future tax measures could influence taxpayer behaviour, arguing that enforcement alone is unlikely to solve the problem.
For more information, visit CIA Tax.
