International Tax in the Digital Age: A Blueprint for Allocating Profits. This project aims to investigate tax avoidance by multinational enterprises in the age of the digital economy. It addresses the difficult problem of determining the location in which profits are made. The project expects to generate new knowledge in international tax by developing a blueprint for allocating profits of multinational enterprises between jurisdictions that aligns with profit making activity and reduces intern ....International Tax in the Digital Age: A Blueprint for Allocating Profits. This project aims to investigate tax avoidance by multinational enterprises in the age of the digital economy. It addresses the difficult problem of determining the location in which profits are made. The project expects to generate new knowledge in international tax by developing a blueprint for allocating profits of multinational enterprises between jurisdictions that aligns with profit making activity and reduces international tax avoidance. A systematic structure for allocating profits of multinational enterprises will address the important problem of tax base erosion caused by profit shifting. This will provide the significant benefit of developing a major tool in securing Australia’s revenue base in the digital age.Read moreRead less
The Role of a Central Bank’s Balance Sheet in Shaping the Economy. In response to the global financial crisis, the world’s major central banks cut their rates to near zero and implemented untested unconventional monetary policies, significantly expanding the size and composition of their balance sheets. More than a decade later, the Reserve Bank of Australia is considering similar balance sheet policies. This proposal aims to develop various frameworks that can be used to simulate and evaluate w ....The Role of a Central Bank’s Balance Sheet in Shaping the Economy. In response to the global financial crisis, the world’s major central banks cut their rates to near zero and implemented untested unconventional monetary policies, significantly expanding the size and composition of their balance sheets. More than a decade later, the Reserve Bank of Australia is considering similar balance sheet policies. This proposal aims to develop various frameworks that can be used to simulate and evaluate when and how to eventually undo unconventional monetary policies in order to prevent a prolonged recession. Thus this research proposal will contribute to the current Australian monetary policy debate while providing some insights on how best to implement such policies, improving the living standards of Australians.Read moreRead less
Quantification issues in corporate valuation, the cost of capital, and optimal capital structure. An estimate of the firm's cost of capital is probably the most important calculation required in corporate finance. It is used as the discount rate in valuation and capital budgeting decisions and forms the basis of pricing structures for many regulated industries. Corporate finance theory has identified the key inputs used to calculate the cost of capital, but the current literature falls short o ....Quantification issues in corporate valuation, the cost of capital, and optimal capital structure. An estimate of the firm's cost of capital is probably the most important calculation required in corporate finance. It is used as the discount rate in valuation and capital budgeting decisions and forms the basis of pricing structures for many regulated industries. Corporate finance theory has identified the key inputs used to calculate the cost of capital, but the current literature falls short of precisely quantifying and measuring many of these inputs. The outcomes from this project will be a framework to quantify three key aspects of the cost of capital - the value of dividend imputation tax credits, the assessment of the optimal capital structure for the firm (in particular, the quantification of bankruptcy and agency costs associated with debt financing), and the estimation of the firm's marginal tax rate.Read moreRead less
Assessing and addressing tax system complexity in Australia. Tax reform and simplification are highly topical in government, business and the wider community, with many initiatives proposed or under way. This project will identify the key factors in tax system complexity, measure the costs it imposes upon taxpayers and develop complexity indices that can test new policy measures and monitor improvements.
Supporting Entry and Growth of Australian Businesses via Tax and Transfers. This project aims to characterise the optimal tax treatment of business income for insurance and efficiency purposes. Using new data for Australia, the project expects to first identify key determinants of businesses creation, growth and exit, before and after COVID-19. In light of those determinants, the project expects to develop original macroeconomic models integrating firm dynamics into optimal taxation frameworks. ....Supporting Entry and Growth of Australian Businesses via Tax and Transfers. This project aims to characterise the optimal tax treatment of business income for insurance and efficiency purposes. Using new data for Australia, the project expects to first identify key determinants of businesses creation, growth and exit, before and after COVID-19. In light of those determinants, the project expects to develop original macroeconomic models integrating firm dynamics into optimal taxation frameworks. Expected outcomes include formulating fiscal policies that provide adequate stimulus to businesses, by balancing public insurance and income inequality. This should deliver evidence-based inputs to promote Australia's post-pandemic recovery, through the design of a fairer and more efficient business tax and transfer system.Read moreRead less
Talent Mismatch: Evidence from Australian Administrative Tax Records. The project aims to study the skill composition of the Australian workforce. Changes in the macroeconomic and technology environments make it hard to predict skill shortage. The project expects to develop macroeconomic models quantifying skill-mismatch of university graduates, identify sources of mismatch, highlight gender and generational differences, and estimate associated costs to Australia. The expected outcomes are to he ....Talent Mismatch: Evidence from Australian Administrative Tax Records. The project aims to study the skill composition of the Australian workforce. Changes in the macroeconomic and technology environments make it hard to predict skill shortage. The project expects to develop macroeconomic models quantifying skill-mismatch of university graduates, identify sources of mismatch, highlight gender and generational differences, and estimate associated costs to Australia. The expected outcomes are to help shape policy recommendations on the funding of tertiary education in a changing economic climate. This should provide significant benefits to Australians, as policies shaping the tertiary education system affect individual income and the aggregate economy by determining labour supply and taxpayers' financial burden.Read moreRead less
Technological innovation, trade liberalization, unemployment, and policy design. Australia, like all economies, is heavily influenced by technological changes and shifting trade patterns. Understanding these influences, and the impact they have on the distribution of income, the unemployment rate, and the job mix, is very important for the design of appropriate policy initiatives. The proposed research aims to achieve exactly this by developing a mathematical model which incorporates technologic ....Technological innovation, trade liberalization, unemployment, and policy design. Australia, like all economies, is heavily influenced by technological changes and shifting trade patterns. Understanding these influences, and the impact they have on the distribution of income, the unemployment rate, and the job mix, is very important for the design of appropriate policy initiatives. The proposed research aims to achieve exactly this by developing a mathematical model which incorporates technological change, trade, and unemployment. The model will be used to analyse the effects of these changes and, thus, to design optimal policy. The results from this project should also stimulate policy discussions both within Australia and abroad - enriching academic relations between domestic and international universities.Read moreRead less
Institutional Governance Systems and Sustainability: The Transformation of Resource Industries in the United States and Australia 1974-2004. Variations in industry performance within and across nations has resulted in renewed interest in the institutional governance systems that generate national competitive advantage and innovation. There has also been an increased focus on the impact of sustainability and environmental costs on corporations. The significance of this project to the nation and t ....Institutional Governance Systems and Sustainability: The Transformation of Resource Industries in the United States and Australia 1974-2004. Variations in industry performance within and across nations has resulted in renewed interest in the institutional governance systems that generate national competitive advantage and innovation. There has also been an increased focus on the impact of sustainability and environmental costs on corporations. The significance of this project to the nation and the community is that it develops an understanding of the role played by industry institutions in transforming corporate and industry approaches to sustainability. This study will show how industries and corporations respond to sustainability over time and the impact of these changes on major stakeholders (communities; shareholders; employees).Read moreRead less
Predicting the value and use of urban land. This project aims to develop a comprehensive, robust and user-friendly set of modelling tools to predict land values more accurately. Accurate predictions of land values reduce state government revenue risks and improve resource management. The expected outcome of this project is the development of modelling tools which, can be used to study land use allocation, infrastructure delivery and government taxation revenue. This should provide significant be ....Predicting the value and use of urban land. This project aims to develop a comprehensive, robust and user-friendly set of modelling tools to predict land values more accurately. Accurate predictions of land values reduce state government revenue risks and improve resource management. The expected outcome of this project is the development of modelling tools which, can be used to study land use allocation, infrastructure delivery and government taxation revenue. This should provide significant benefits such as the development of new econometric theory, advanced computational methods and evidence-based guidelines for policymakers.Read moreRead less
An Improved Framework for Analysing the Fiscal Implications of Population Ageing. The Commonwealth Government's 'National Strategy for an Ageing Australia' explicitly acknowledged the potential for intergenerational conflict in Australia as relatively fewer young people must provide for the consumption of a growing proportion of retired people. The Intergenerational Report (IGR) in 2002 was an important step in national planning to avoid such a conflict. The proposed project seeks to address maj ....An Improved Framework for Analysing the Fiscal Implications of Population Ageing. The Commonwealth Government's 'National Strategy for an Ageing Australia' explicitly acknowledged the potential for intergenerational conflict in Australia as relatively fewer young people must provide for the consumption of a growing proportion of retired people. The Intergenerational Report (IGR) in 2002 was an important step in national planning to avoid such a conflict. The proposed project seeks to address major shortcomings in the IGR and provide an improved framework for future IGRs. The project addresses two Priority Goals within the Designated National Research Priority 2. These are: 'Ageing well, ageing productively' and 'strengthening Australia's social and economic fabric'.Read moreRead less