Growing Reform Calls in Australia’s Tax System
As the tenure of the OECD’s tax executive David Bradbury comes to an end, he has voiced a strong opinion on the need for Australia to conduct a comprehensive review of its tax and spending policies. Bradbury, who has previously served as a Labor minister, highlighted the country’s over-reliance on personal and corporate income taxes, suggesting that this approach may not be sustainable in the long run.
During his interview with
Bradbury’s call for tax reform aligns with recent statements from influential Australian figures such as former Treasury boss Ken Henry, ex-Reserve Bank governor Philip Lowe, and Commonwealth Bank CEO Matt Comyn. Despite this mounting pressure, Treasurer Jim Chalmers has expressed a preference for modest changes rather than sweeping reforms.
The conversation around tax reform is not new; it echoes the sentiments of the Henry tax review from 15 years ago. However, Bradbury believes the world has changed significantly since then, with challenges such as the net-zero carbon emissions transition, the global pandemic, and geopolitical fragmentation necessitating a fresh look at the recommendations.
Bradbury also touched on his achievements at the OECD, including progress on global corporate tax rules designed to prevent a race to the bottom. However, he noted that international cooperation might be waning due to rising geopolitical tensions.
Reflecting on his future career plans, Bradbury shared that after a decade in Paris, he is returning to Sydney to be closer to family. While he has been shortlisted for the role of tax commissioner, ultimately not being selected, he is contemplating whether to continue his involvement in tax or pursue other leadership opportunities.
Despite his extensive experience in tax policy and law, Bradbury has dismissed any speculation of a return to politics, stating that this chapter of his life is closed.
