Independent MP Allegra Spender wins McKinnon Prize for tax reform efforts

The McKinnon awards panel said it was a brave act for Spending to “put his head above the parapet” and advocate for tough tax changes. It also praised his “impressive policy approach, important and solid work on tax reform, and discipline in pursuing a challenging policy agenda.”

Despite the risks, Spending’s tax overhaul campaign did not hurt his election prospects.

He increased his margin in Wentworth in the 2025 election in May by 1.5 percentage points compared to his first victory in 2022. Spending currently holds the seat by a comfortable margin of 58.3 percent on terms favored by the two candidates.

Spending suggests many voters are open to tax reform.

“I was literally walking on the beach the other day and a woman walked by and said, ‘Keep paying taxes, you’re doing a great job’; people are thoughtful, they realize there are no easy answers to some of the biggest challenges we face as a country, so we’re going to have to look at the hard ones,” he said.

Tax reforms are needed to help tackle three major national challenges, spending says. First, they can address growing intergenerational inequalities and help young Australians, particularly with access to housing; second, they can help businesses and increase productivity; and third, they will help ensure an efficient transition to renewable energy.

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The green paper argues that Australia’s over-reliance on income tax revenue is placing an unfair and growing burden on young working Australians. These and other tax regulations have been blamed for exacerbating the housing affordability crunch.

“I think there’s a big concern that young people won’t have the same options that their parents have,” says Spending. “Right now, with housing and young people, I worry about your family background having a disproportionate impact on your ability to live a good life, and I really have a problem with that… I see tax as part of the solution, but it’s too hot an issue for most people to tackle.”

The spending says all taxes, including stamp duty, a particularly inefficient tax levied by state governments on property transactions, should be on the table for review.

The McKinnon Award panel said his push for tax reform “reignited an important debate about modernizing Australia’s fiscal policies to better align with the evolving economic landscape and the needs of our society.”

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Spending, who studied economics at Cambridge University, has made economic policy a personal focus since his election. Before entering politics, she worked as a business analyst at consulting firm McKinsey and as managing director at Carla Zampatti Pty Ltd, whose mother, Carla Zampatti, founded a major fashion company.

Expenditure isn’t the first member of Wentworth to reveal its own tax documents. In 2005, then newly elected Liberal member Malcolm Turnbull published a plan modeling this situation. almost 300 possible tax changes. He called it a crusade to “get the debate about tax reform out of the very hard basket.”

Turnbull’s intervention ruffled the Howard government’s feathers and his proposals were accepted. publicly dismissed by then-treasurer Peter Costello.

So far, Spending has no disagreements with the incumbent treasurer. He says Jim Chalmers is making the right noises on tax; Following the government’s economic roundtable in August, he described the tax system as “flawed” and signaled future reforms.

“It’s positive that he even put this on the agenda,” says Harcama. “When I entered parliament in 2022, no one wanted to talk about taxes.”

This article is part of a content partnership between. Herald, Age and McKinnon, an independent, nonpartisan, nonprofit focused on the importance of democracy and good government.