After weeks of blunders, Prime Minister Malcolm Turnbott has reportedly appointed Dr Martin Parkinson – the current head of the Department of Prime Minister & Cabinet – to coordinate the Government’s tax package. From The Guardian:
The government is rushing to fill the policy void at the centre of its poor start to the election year, with the new head of the Department of Prime Minister and Cabinet, Martin Parkinson, taking over responsibility for coordinating Malcolm Turnbull’s long-awaited tax package from the treasurer’s tax unit.
The shift happened about three weeks ago, around the time the prime minister abandoned the idea of raising the goods and services tax. The cabinet secretary, Arthur Sinodinos, is now also heavily involved in the “whole of government” process, which could see some tax policy announced within weeks, well before the May budget…
Morrison has suggested the government could unveil changes to superannuation before the budget but some in the government now believe there needs to be a broader announcement.
The new tax package will be part of an election pitch based on steady, careful economic management rather than bold policy upheaval, grounded in the idea that the electorate does not want radical change.
This is good news as far as it goes. Dr Parkinson has an excellent understanding of tax reform and is well placed to guide the government on these matters.
Whether Parkinson’s appointment stems the flow of mixed messages (and confusion) from within the Coalition, and the white-anting against reform by the backbench, is another matter. There is also a big question mark over how much reform is actually achievable given the Government has ruled-out raising the GST, ruled-out changing the capital gains tax discount, and has lobbied so strongly against Labor’s changes to negative gearing.
About the best that we can hope for on tax reform is changes to concessions on superannuation contribution so that they are made more progressive, along with minor caps to negative gearing deductions.
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