Starting with the always delirious AFR editorial:
Mr Frydenberg is signalling that the government will introduce some sort of tax break for extra business investment, as urged by the Business Council of Australia and Labor. Regrettably, the government has ruled out cutting Australia’s uncompetitive 30 per cent tax rate for all but its smaller companies…the government needs to balance that political instinct with the need to give confidence to help attract more business investment. The Prime Minister needs to take hold of the growing energy crisis before the quiet Australians’ summer airconditioning is hit with blackouts. He and Mr Frydenberg need to start to move on fair dinkum tax reform and workplace reform that would better reward those who do the hard yards every day, and those who hire them.
Right on energy, wrong on everything else. Tax cuts for business will do nothing for investment. The problem is weak demand into which no business needs to grow capacity.
