There are various proposals regarding how to reform capital gains taxation in Australia. Using data on realised capital gains in 2022 for a subset of housing investors (those holding for between one and nine years) this paper describes how four different tax systems, including the current system, would have treated individuals differently.

Australians hold some of the highest levels of mortgage debt in the world. This paper examines what is widely considered to be one of the strongest channels of monetary policy transmission into household spending – the effect of changes in mortgage payments when mortgage rates are linked to the short-term policy rate.

Amid an evolving range of international approaches, this report finds that the Australian Government is yet to provide a clear direction for AI regulation. It highlights the importance of regulatory certainty as an enabler of AI-driven productivity. It outlines five principal channels for productivity gains: labour-improving tools, automation, firm-level reorganisation, sectoral reallocation and knowledge creation.

Individual income taxes in Australia raise nearly half of federal government revenue. This note offers a new perspective on the efficiency and equity implications of the individual income tax system. The findings paint two starkly different pictures of horizontal and vertical equity in effective tax rates at high and low levels of income.

The 2014 reforms to the Disability Support Pension (DSP) resulted in the removal of younger recipients with some work capacity from the DSP. This paper explores the effect on household income and health outcomes for those removed. The findings have important implications for the design of income support payment. The paper provides key insights for...