Kenneth Ross Henry (born 27 November 1957) is an Australian economist and public servant who served as the Secretary of the Department of the Treasury from 2001 to 2011.
During his time as Secretary of the Treasury, Henry chaired the major Future Tax System Review, which became known as the Henry Tax Review, a document published in 2010 which is credited with shaping Australian tax policy over the following decade. He retired from the civil service in March 2011, and weeks later was appointed Special Adviser to Prime Minister Julia Gillard. During his time in this role, he chaired the committee which produced the White Paper on Australia in the Asian Century. He left his role as Special Adviser in 2013, and became Chairman of the Australian Securities Exchange, Chairman of the National Australia Bank, and joined the Sir Roland Wilson Foundation at the Australian National University.
Education and early career
Ken Henry studied economics at the University of New South Wales, graduating in 1979. After, he lectured in economics at the University of Canterbury in New Zealand while studying for his Doctor of Philosophy degree at the same institution. From September 1986 to June 1991, Dr Henry worked as a senior adviser to the Labor Treasurer, Paul Keating, providing advice on taxation policy and administration, retirement incomes policy, industry policy and microeconomic reform (including telecommunications reform). In June 1991 he returned to the Treasury, becoming head of the Microeconomic Modelling Unit. In July 1992 he took up the position of Minister-Counsellor (Economic and Financial Affairs) in the Australian Delegation to the OECD in Paris. During this time, he has served as an Australian representative to the Organisation for Economic Co-operation and Development (1992–94). He was the Treasury department secretary from April 2001 until March 2011; and therefore an ex-officio member of the board of the Reserve Bank of Australia.
Henry remained head of Treasury in the transition from Liberal to Labor Governments in 2007. In 2008 he headed Australia's Future Tax System Review Panel, charged with examining all aspects of the Australian tax system with a view to reform.
Treasury
Climate change
In 2004, Henry recommended a National Emissions Trading Scheme to thwart climate change, however the advice at the time was ignored. His recommendations have since been praised.
Consumption tax modelling
Ken Henry has been criticised for his role in modelling the Hewson Liberal opposition reform package known as Fightback!. That package contained as a central element a goods and services tax, similar to both the Option C developed by Henry for the Hawke Labor government in 1985, and the GST developed for the Howard Liberal Government in 1997. Henry rejects the claim that Treasury acted improperly, saying "We rejected that charge at the time. I would always reject it. There was nothing improper in what we did." He did concede, however that "it is the case that our work was used by the Government to attack publicly an Opposition policy." In reference to the Option C modelling he had previously worked on, Henry said:
When Fightback! came out, the model the team had developed enabled the identification of a major failing in the package. Income tax bracket creep had been used to fund the package but bracket creep had not been used in the analysis of the after tax income various taxpayers would receive. Treasury was accused by the Coalition of having acted improperly.