Australia is considering a wealth tax aimed at billionaires to address growing economic inequality. This potential tax reform is being discussed amidst rising concerns about wealth concentration and the role of the tax system in exacerbating these issues.
The proposal, which has gained traction in the media, suggests a tax on the net worth of the wealthiest individuals. The Australia Institute has reported that the wealth of Australia's richest 200 people has significantly increased as a percentage of the national GDP. This has prompted discussions on how to make tax more equitable.
The implementation of a wealth tax in Australia would likely require global coordination. The article highlights the challenges of taxing unrealized gains and the potential for wealthy individuals to move assets to avoid taxation. A key focus is on taxing assets that cannot be moved, such as real estate. Academic research from countries like Switzerland and Sweden is being examined to learn from their experiences.