Platitude one.
Treasurer Jim Chalmers has opened the door for an assault on superannuation concessions and other wealth taxes in exchange for lower income tax, by declaring intergenerational equity will drive reforms that could be taken to the next election or implemented beforehand.
Wrapping up the three-day Economic Reform Roundtable on Thursday, Chalmers said while there was no clear consensus on the specifics of tax reform among the 23 attendees, there was broad recognition that the system was unfairly skewed away from younger people.
“I think our tax system is imperfect, and one of its most troubling imperfections is best seen through an intergenerational lens, which is why we take our responsibilities to the coming generations seriously,” Chalmers said.
This will deliver the same political gift to the Coalition that it did in the 2019 election when the Shorten opposition proposed an excellent platform of super and housing tax reforms.
Only this time, Albo the coward will be twice as wary because it will jeopardise the structural shift towards Teals in former blue ribbon LNP seats.
It’s a non-starter for the do-nothing bovver boy PM.
Platitude two.
Productivity Commission chair Danielle Wood says the outcomes from the economic reform roundtable are not enough to fully repair Australia’s sluggish productivity, with Jim Chalmers outlining no immediate policies from the much-hyped summit while vowing to use the discussions to inform future policy development.
One can only assume Ms Wood is joking. Nothing came of the summit, in part, because Wood’s efforts were so cowardly.
Investment incentives won’t work; nobody needs to invest while immigration drives growth. This is not even reform. It’s chasing your tail.
The new frontier of consensus-hugging, leading women driving reform, is about as robust as wet lettuce.
Platitude three.
Giving the average worker a $2,700 income tax cut in return for widening the GST would be part of a major tax overhaul that could add a combined $158bn to the Australian economy.
Chris Murphy, an economist who provided the modelling for introduction of the GST and Ken Henry’s 2010 tax review, has outlined a $91bn shift in the tax mix, which includes replacing stamp duties with a land tax and taxing corporate super profits.
Lol. Forget it.
Platitude four.
Most significant is what came out on taxation. Summing up after the meeting, Chalmers said there was appetite for tax reform on three fronts. These were:
- achieving a “fair go” for working people, including intergenerational equity
- finding an affordable way to incentivise business investment
- and making the system simpler and more sustainable, “so we fund the services that people need,” taking account of aging and other pressures on the economy.
Motherhood statements, all.
Pivot to Palestine.
