AusBN - The International Monetary Fund (IMF) has concluded that while Australia has enjoyed ‘modest’ economic growth in the last year, this has been weighed down by weak wage growth.
In its annual report on the Australian economy, the global financial organisation recommended that the country should slash corporate and individual tax rates and impose higher taxes on land and consumption.
It referenced proposed income tax reductions in ‘other large advanced economies’ as a factor which will have capital flow implications in Australia.
Republican politicians in the US are currently trying to pass various tax cuts into law, which could make it a more attractive investment destination than Australia.
The IMF also criticised the various states' stamp duty tax regimes for being ‘inefficient’ and called for it to “be replaced with a systematic land tax regime applying to all residential and commercial properties."
However, the report did highlight Australia’s continued successful transition from the early 2000s mining boom, along with strengthening domestic demand growth, and a rise in employment growth since the start of the year.