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Research theme

Income Taxation

Quantifying the aggregate and distributional effects of personal income tax schedules in Australia, including their interaction with labour supply, savings, and human capital decisions.

Research focus

Understanding how income taxes shape economic behaviour

Quantifying the aggregate and distributional effects of personal income tax schedules in Australia, including their interaction with labour supply, savings, and human capital decisions.

The lab studies Australia's personal income tax system using structural lifecycle models that trace how households respond to after-tax wages, marginal rate changes, and the incentives created by fiscal design.

A central concern is the interaction between statutory tax rates and means-tested transfers. Using administrative tax data and model-based simulations, the research evaluates bracket design, tax-free thresholds, top rates, and the consequences of reform for revenue, distribution, and long-run welfare.

Key question

What is the optimal degree of progressivity in Australia's income tax schedule?

Key question

How do marginal tax rates interact with transfer withdrawals to shape effective marginal rates across the income distribution?

Key question

What are the aggregate and lifecycle welfare effects of major tax reforms?

Selected publications

Research linked to this theme

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

Selected publication

Optimal Fiscal Policy with Idiosyncratic Risk and Capital Accumulation

Chung Tran | Review of Economic Dynamics, 2016
Selected publication

Fiscal Policy in an Ageing Economy: Tax vs. Debt Financing

Chung Tran | Journal of Monetary Economics, 2018
Selected publication

Child-Related Transfers, Means Testing and Welfare

Darapheak Tin, Chung Tran | Working Paper, 2024

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