Managing tax complexity : the state of play after Henry

Abstract

The most recent, significant tax reform review in Australia, popularly known as the Henry Review, was publicly released just over six years ago. This article provides a critical examination of Australia's experience in tax complexity management since the Henry Review. Two main observations are put forward. First, not surprisingly, very few of the Henry Review's recommendations related to tax simplification have been implemented. The Henry Review has achieved relatively more with respect to personal income taxation than business income taxation. Second, tax complexity in Australia has been increasing since the Henry Review from both the legal and economic perspectives. An attempt is then made to explain why it is so hard to simplify the tax system in Australia and elsewhere.