The incoming head of the Productivity Commission has put inheritance tax on the federal agenda.

Danielle Wood recently gave a speech in her previous role at the Grattan Institute calling for a “sensible conversation” about an inheritance tax on the rich.

Senior economist at the Australia Institute, Matt Grudnoff, says Australia is “the only developed country in the world” that doesn’t have an inheritance tax, and introducing one would be a good idea.

Press PLAY below to hear why an economist thinks it’s a good idea

“We all want better healthcare, we all want better aged care, there are all sorts of services the government provides that we value and think are important and this is one way of raising revenue in order to fund those,” he said.