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Research theme

Fiscal Progressivity

Measuring the effective progressivity of Australia's combined tax-and-transfer system across income, wealth, age, and household structure.

Research focus

Mapping the true progressivity of Australia's fiscal system

Measuring the effective progressivity of Australia's combined tax-and-transfer system across income, wealth, age, and household structure.

The lab measures progressivity by looking at the combined tax-and-transfer system rather than statutory tax schedules in isolation. Administrative records and household data are used to trace effective marginal tax rates across households, ages, and family structures.

This work helps quantify the equity-efficiency trade-offs involved in making the fiscal system more or less progressive. It also shows how taxes, Medicare levies, and transfer withdrawal rules interact over time and across different types of households.

Key question

How progressive is Australia's combined tax-and-transfer system, and how has this changed over time?

Key question

How do effective marginal tax rates differ across income levels, demographics, and family structures?

Key question

What are the equity-efficiency trade-offs of increasing or decreasing fiscal progressivity?

Selected publications

Research linked to this theme

This shortlist reflects the publications currently referenced in the existing site materials for this topic.

Selected publication

The Evolution of Earnings Distribution in a Sustained Growth Economy: Evidence from Australia

Tin, Tran, Zakariyya | Working Paper 2025
Selected publication

Optimal Size and Composition of Government Spending in Open Economies

Du, Gomis-Porqueras, Moslehi, Tran | Working Paper 2024

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