“The Treasurer has been very clear that he sees this budget as the first in a series and if that is the case, then now is the time to announce an inquiry into the reform of the tax system so that we get a root and branch approach to the analysis,” said Mr Molesworth.

“We know multinational tax changes are on the table so we're certain we're going to see some of the detail about the changes to the thin capitalisation rules, the rules about royalty payments to tax havens, and potentially, the public disclosure of country-by-country reporting information.”

Mr Molesworth said the government recent raft legislation which will deny franking credits paid by companies that made capital raising gives an indication of the sort of tinkering that could be announced announced in this Budget.

“But what we need is government appetite for reform that will make the Australian tax system more simple and more efficient,” said Mr Molesworth.

With the already legislated stage three tax cuts hanging in the balance, Mr Molesworth said the government has time on its side.

“I think the size of the stage three tax cuts are up for grabs in this budget but the Treasurer may choose to wait until next year's May budget to come to a final conclusion about that,” he stated.

“The public expects fiscal policy in Australia to work hand in hand with monetary policy. We don't expect to see big revenue returns to people in the form of tax cuts but equally we don't expect to see massive revenue raising measures in this budget.”

Based on the UK experience, Mr Molesworth said the public doesn’t have an appetite for tax cuts in an inflationary environment.

“Closer to home, the recent Queensland land tax experience means that the government will probably have no appetite for revenue raising where that comes at a huge compliance cost,” he said.