Lifetime net average tax rates in Australia since federation - A generational accounting study

This paper presents estimates of average net payments to government, as a p er cent of average lifetime labour earnings, for generations born in Austra lia since Federation (1901), based on historical data combined with several reasonable future scenarios covering fiscal policy, growth and demographic change. The results shed light on whether certain generations have been tr eated more favourably by the public sector than others this century. The ma in conclusion is that the average lifetime net tax rate will, under reasona ble assumptions, be of the order of 37-39 per cent for all currently living generations born since the mid-1930s.