A 'no-returns tax system' for Australia: Some inconvenient facts

It has been proposed that Australia adopt a `no-returns¿ income tax system. One consequence of such a reform would be the standardisation, or even elimination, of work-related expense deductions. Using ATO data it is shown that in introducing a no-returns tax system and eliminating work-related expense deductions, the average Australian (making a claim) would save $268 on accountant fees but forgo $1860. In addition eliminating itemised work-related expense deductions would have a regressive impact.