Australian Labor Party MP Mike Freelander has called on the Albanese government to display courage in advocating for challenging tax reforms. 

He voiced concerns that Australia could become more Americanized and less successful if current tax policies persist, as reported in the Australian Financial Review.

Freelander’s comments came after the release of a report by the St Vincent de Paul Society recommending the removal of stage three tax cuts.

Freelander acknowledged that he personally benefited from the existing taxation system but emphasised that his children are now paying the price.

He stressed the need for measured actions that would enable younger generations to enjoy a similar quality of life. 

Progressive reforms

The report, authored by economists from the Australian National University, proposed several reforms, including a moderate increase in capital gains tax, a progressive superannuation taxation system based on income, and a raise in the tax-free threshold from $18,200 to $24,000.

These changes were put forth as a means to lift over 830,000 Australians out of poverty, primarily through increased welfare support for low-income households, single parents, and individuals with disabilities.

Freelander refrained from specifying which aspects of the report he supported, as he feared political weaponization.

Freelander believed that initiating discussions on these reforms now and gradually garnering support for necessary changes was essential. He emphasised that Australia’s egalitarian values should not be compromised by growing wealth inequality. If left unchecked, the country could transform into a more Americanized and less successful society.

While Freelander spoke out on this issue, other politicians, including Labor MP Alicia Payne and several present during the report’s launch, chose not to comment on the recommendations.

The Intergenerational Report from the previous month had highlighted that, under current settings, workers would face an increasing share of the tax burden over the next four decades.

St Vincent de Paul’s national president, Mark Gaetani, responded to Treasurer Jim Chalmers’ call for a tax system debate, emphasising the society’s commitment to engaging in this important conversation.