Mainstream economists and conservative political leaders profess “surprise” at the historically slow pace of wage growth in Australia’s labour market.
In its desperation to cut the company tax rate the Turnbull government is willing to burden future generations with the kind of record budget deficits it has previously sought to pin on the ALP. As an economic strategy it makes little sense but as a political strategy it makes no sense. Indeed the PM seems so keen to deliver something, anything, that looks like reform that he's managed to trash his party's key political asset: the perception that the Coalition were better budgeters.
U.S. President Donald Trump’s recent trade policies (including tariffs on steel and aluminium that could affect Australian exports) have raised fears of a worldwide slide into protectionism and trade conflict. Trump’s approach has been widely and legitimately criticised. But his argument that many U.S. workers have been hurt by the operation of current free trade agreements is legitimate; conventional economic claims that free trade benefits everyone who participates in it, have been discredited by the reality of large trade imbalances, deindustrialization, and displacement.
Over the ten years to 2026-27 when the total benefit to companies is estimated at $65 billion, The Australia Institute estimates the big four banks will receive a ‘gift’ of $9,500 million with Commonwealth Bank alone to receive $2,800 million.
Over the last two years the average tax paid by the companies calling for the Senate to pass the tax cuts was 12.35%; half of them paid no tax last year.
The first National Manufacturing Summit was held at Australian Parliament House, Canberra, in June 2017, organised by the Centre for Future Work and the Australia Institute. The event was attended by over 100 delegates from the full range of stakeholders concerned with the future of Australia’s manufacturing sector: including businesses, industry peak bodies, trade unions, government departments, academic institutions and vocational training providers, and other civic organisations.
All poor people have low taxable incomes, but many people with low taxable incomes are a long way from being poor.
[First published in the Australian Financial Review - here]
And while the debate about the fairness of abolishing cash refunds for "spare" tax credits has conflated poor people and those with good accountants, the two groups are quite easy to distinguish.
Wentworth poll shows just 27.3% support for cutting rate on profits of large companies. Poll of Brisbane shows low support for cuts to taxes and services.
Polling released today by The Australia Institute of Malcolm Turnbull’s affluent federal seat shows about the same number of voters want the company tax rate increased (26%) as want it decreased (27%), with the largest number (42%) preferring the rate be kept the same.
The electorate of Brisbane was also polled, showing just 17.5% support for less tax revenue to decrease funding to public services and infrastructure.
On the 10 year anniversary of Bear Stearns collapse, Wayne Swan, with the GFC+10 project, launches report on executive pay in Australia.
GFC+10 is a research program and series of events marking the ten-year anniversary of the Global Financial Crisis. It was launched by then Economic Secretary to the Treasury in the UK, Ed Balls, and Australian Treasurer during the GFC, Wayne Swan.
The report released today analyses CEO pay in Australia, finding concerning trends that mirror the surge in executive pay in the lead-up to the GFC.
The tax treatment of earnings generated from owning shares is complicated. Because it is complicated most people think it is boring. Because it’s boring we don’t discuss it much. However Australia’s dividend imputation system is important, unique to the world and comes with approximately a $30 billion dollar a year price tag. So whatever you think about Bill Shorten and Chris Bowen’s announcement it is a good thing they have got us talking about one of the least understood aspects of tax policy in Australia.