The interface of the income tax and social security systems and the overlapping of different income tests can result in very high effective marginal rates of tax. This can create strong disincentives for those who receive cash transfers to move off welfare and/or increase their private income....

The March 2014 Report of the National Commission of Audit and the Commonwealth's tax reform and federalism discussion papers published in the first half of 2015 provided some early insights into the Coalition Government's agenda for reforming the national tax system and fiscal federalism. One...