The tax reforms prioritised ensuring fairness and intergenerational equity for workers, incentivising business investment to address economic productivity challenges, and simplifying the system to fund essential services amid societal shifts like ageing sustainably.
Australia’s Treasurer Jim Chalmers, in a press conference released on 21 August 2025, has outlined a structured tax reform approach following the Economic Reform Roundtable that took place in Canberra during 19-21 August 2025.
The discussion was focusing on fairness, investment incentives, and sustainability. While ruling out an external review, the government will consult internally with participants to guide future budgets.
The roundtable highlighted the need for tax reform to address intergenerational equity, boost business investment, and simplify administration. Chalmers acknowledged flaws in the current system, particularly its impact on younger generations, and committed to exploring reforms aligned with economic and demographic shifts.
Additionally, the Treasurer announced plans to collaborate with roundtable contributors on tax reform through targeted engagement and existing policies, avoiding a new public tax review.
As Treasurer Chalmers stated, the government’s tax reform plan will be built around three key objectives.
1. Ensuring fairness for workers and future generations
The government’s tax reform agenda prioritises fairness for working individuals, with a focus on intergenerational equity to ensure a balanced approach for current and future generations
2. Encouraging business investment for economic growth
A key objective is to create an affordable and responsible framework that incentivises business investment, addressing the economy’s capital deepening challenges to boost productivity and growth.
3. Simplifying and sustaining the tax system
The agenda also aims to simplify the tax system, making it more sustainable to fund essential public services. This is particularly critical in addressing societal shifts, such as an ageing population and other emerging pressures.
Additionally, Treasurer Chalmers also mentioned that the tax reform will guide future budgets, with flexible timing and scope. While no specific tax changes are committed for the next election, initiatives like road user charging and removing “nuisance tariffs” may progress sooner.
