The Howard Government, Capital Taxation and the Limits of Redistribution?

Whilst often being overshadowed by debate surrounding personal income and consumption taxes, the Howard government has also devoted significant resources to reviewing and reforming business and capital taxation. This paper provides an overview of the Ralph Review of Business Taxation and the Howard government’s mixed record when it came to the implementation of the Ralph reforms. Having documented the subsequent changes in corporate income, capital gains and superannuation taxation, the paper analyses their economic impact. The paper concludes with an assessment of the longer term political significance of these changes and asks whether the concessional taxation of capital that has occurred under the Howard government represents a fundamental shift in the basis of Australian taxation.