Productivity roundtable final day: Tax reform up for discussion as summit eyes negative gearing

An overhaul of how Australians could be taxed will be put in the spotlight as a productivity roundtable draws to a close.

The third and final day of the federal government’s economic reform summit in Canberra will focus on tax reform and budget sustainability on Thursday.

The government went into the federal election in May promising not to make changes to negative gearing and the capital gains benefit, but forum attendees are still expected to make the case for the reforms.

Unions are set to argue for a full suite of tax measures including limiting negative gearing to one investment property, with existing laws allowed to stay in place for the next five years.

A minimum tax rate of 25 per cent for people earning more than $1 million per year has been pitched by union attendees.

Capital gains and negative gearing reform needed to be considered by the government to take to voters, tax expert Dale Boccabella said.

“Aspects of the tax system is just unfair and the big one is the capital gains tax discount,” the associate professor of tax law at the University of New South Wales told AAP.

“If you look at who gets the benefits, it goes to the top end, they don’t need a 50 per cent tax break.”

Assoc Prof Boccabella said sustainability of the tax system needed to be front and centre during the final day of the roundtable.

“Sustainability and fairness go hand in hand, and underlying that, of course, is generational unfairness,” he said.

“The government should not be criticised for acting on (negative gearing), it should be done in a sustainable way.”

The third day of the summit will include a presentation on budget sustainability by Treasury secretary Jenny Wilkinson.

A pitch on a better tax system will be delivered by Grattan Institute chief executive Aruna Sathanapally.

Discussions on how to make government services and spending more efficient will be another topic for debate.

The roundtable had produced consensus for areas of economic reform, Treasurer Jim Chalmers said.

“We’ve already got a big agenda to ease the burden on businesses, cut red tape and build more homes but we’re keen to do more where we can,” he said.