What has happened to the Australian Treasury? This once august institution – previously a doyen of ‘frank and fearless’ policy advice – has now morphed into a second rate mouthpiece championing whatever daft policy comes from the sitting government.
A classic example of how Treasury has lost its way is found in its unwavering advocacy of the Turnbull Government’s proposal to cut the company tax rate to 25% from 30%. After its initial modelling last year found that such a policy would cost the federal budget an insane $8 billion a year in lost revenue, and would do precious little to boost either jobs or growth, it released magical new modelling a few months back showing much better outcomes (see here).
