The Henry’ Review of Australia’s Future Tax System: Implications for Local Government

The report on Australia's Future Tax System (Henry Tax Review) was delivered in December 2009 and it contained a number of recommendations that specifically effected local government in Australia. Other recommendations on road user charges and land tax indirectly effected local government. This article analyses those specific recommendations that concern local government and makes recommendations as to what may be required by local government in the future. The article also discusses road user charges and the potential for land tax to increase the revenue for local government. Within this context, the fact that Australia is facing an ageing population and that local government is being asked to increase its services to the elderly only highlights the importance of the Henry Tax Review on local government. The article also examines the Henry Tax Review approach to the housing affordability problem and role that local government plays in making housing affordable. A number of recommendations are made in light of the Henry Tax Review and these may assist local government in securing sufficient revenue in the future in order to continue to provide its vast range of services to the Australian community.