Politics and tax reform: a comparative analysis of the implementation of a broad-based consumption tax in New Zealand, Australia and the United Kingdom

Abstract

The introduction of a broad-based consumption tax in the form of a value added tax (VAT) in the United Kingdom (UK) and goods and services tax (GST) in New Zealand and Australia was politically challenging at the time. This article provides the rationale for their introduction and the process of that introduction in different political contexts. It discusses whether there are lessons that can be drawn as to the political indicators that may need to be present for implementation of significant tax reform, with particular reference to GST reform in Australia.