The OECD argues, correctly, that Australia’s tax system is too reliant on personal income tax. This ‘leaves public finances vulnerable to an ageing population’. A major part of the suggested solution is to increase GST and address the regressive impact of the increase by a compensation package. The latter would include tax reductions for low and middle-income earners and an increase in the unemployment benefit. The OECD also recommends reducing the discount rate on capital gains, reducing the superannuation concessions available to wealthy Australians and getting rid of the two-tier company tax rate.

Source: Bad politics and the death of tax reform