The tax policies seriously handicapping Australia's ability to promote the efficient use and allocation of resources and drive economic growth are many, according to the paper's authors. They include, among other things, an over-reliance on income and company tax, a GST which is too narrowly based and not generating the income it should, unchecked bracket creep, poorly targeted capital gains tax discounts, and the uneven taxation of savings. Even superannuation concessions – the bete noire of left-wing social commentators – are mentioned on equity grounds.

Mercifully, the paper does more than set out the system's weaknesses while rehashing the pros and cons of particular reform measures. The authors suggest, for instance, that the bracket creep which is eroding workforce participation rates could be effectively tackled by indexing tax brackets to wages growth. Indexing tax brackets was last discussed, and dismissed, in the 1970s. In the present era of low inflation and wages growth, however, it has a certain appeal as a painless way to ensure that PAYE taxpayers do not inadvertently find themselves in a higher tax bracket.

To their credit, the authors have not shied away from making more contentious observations about the present tax system. The 50 per cent discount on capital gains tax, which was introduced by the Howard government and which led to an enormous (and continuing) surge in the negative gearing of investment properties, rates several mentions as a cause of serious distortion in the tax system. The paper concedes that while compulsory superannuation has significantly boosted national savings, there are issues around the distribution of concessions, and that these might be addressed by taxing super contributions and earnings at an individual's marginal tax rate.

For all Mr Hockey's observation that the government is ruling nothing in or out of bounds for discussion, the Coalition has indicated clear preferences for what "ought" to be achieved. These include lower personal income tax rates, a lower corporate tax rate and a higher GST rate, with its base broadened to include health, education and goods sold online. Yet the government has already put up barriers, wittingly and unwittingly, that will hinder pursuit of these goals. These include well publicised past promises by Prime Minister Tony Abbott not to increase the GST and which he will find hard to live down. Then there is the apparently dangerous state of Australia's budget deficit about which, until recently, shrill warnings were issued almost daily. However, declining tax receipts caused by softer commodity prices and lower corporate profits – and the abolition of the mining and carbon taxes – mean it is virtually inconceivable PAYE taxpayers and corporations will receive any tax relief in the short to medium term.

As for what reforms "might" be attempted in pursuit of Treasury's goal of increased economic growth, the Coalition's rhetoric is rather more vague. This is not surprising since it knows full well that attempts to build a more rigorous and equitable tax framework will be roundly resisted by all those who benefit from current existing arrangements.

Fear of upsetting the Coalition's core constituency (and voters in marginal seats) is no reason for Mr Hockey to tread softly on tax, however. Indeed, to do so would all but condemn the government to losing office in 2016, just as Queensland's Newman government lost office after the electorate tired of its obsession with public sector spending and job cuts. If Mr Hockey needs further intestinal fortitude, he need look no further than the weekend's NSW election result, which showed that voters will embrace controversial reform measures if they are sold on their merits.