100 years of the minimum wage and the Australian tax and transfer system: What has happened, what have we learnt and what are the challenges?

The Australian minimum wage, as with Commonwealth income tax, had its origin in the early decades of federation. This article reviews the development of these, along with government transfers, to find whether, in the lessons of the past 100 years, there may be insights into the challenges for the in...

Full description

Saved in:
Bibliographic Details
Published inAustralian tax forum Vol. 30; no. 4; pp. 819 - 844
Main Author Bray, J Rob
Format Journal Article
LanguageEnglish
Published Clayton Centre of Policy Studies 01.01.2015
Subjects
Economic aspects
Family allowances
Historical analysis
Income taxes
Labor laws and legislation
Minimum wage
Social integration
Studies
Transfer payments
AUSTRALIA
Australia
Online AccessGet full text

Cover

More Information
Summary:The Australian minimum wage, as with Commonwealth income tax, had its origin in the early decades of federation. This article reviews the development of these, along with government transfers, to find whether, in the lessons of the past 100 years, there may be insights into the challenges for the income tax system in the next century. Over the last century, the role of the minimum wage has changed. Most significant has been its transition from a family wage to a wage for a single person. While the income tax system has at times played a role in seeking to achieve horizontal equity, this has increasingly been achieved through transfer payments. The history of these changes highlights the extent to which features of systems can become locked-in, the long time scales associated with achieving reform, the risks of losing achievements through inertia, and the need for, but difficulty in achieving, coordination across the tax and transfer system, and with wages.
Bibliography:AUSTRALIAN TAX FORUM, Vol. 30, No. 4, 2015, 819-844
Informit, Melbourne (Vic)
ISSN:0812-695X