MAKE no mistake, if a gas field is approved over the Surf Coast Shire it will industrialise the region. The economics of unconventional gas are pretty simple; once approval for a commercial gas field is granted, the company needs to extract as much gas as possible to maximise its return on investment. That typically means

Politicians love children, or at least they do a pretty good job of pretending to. But while there is political consensus around the niceness of children, no such agreement exists about what children really need. Compare the priorities of Barak Obama and Joe Hockey. In one corner we have the President of the United States,

Usually political staffers are not seen and not heard. This week a striking exception was made when Clive Palmer brought attention to the Prime Minister’s chief of staff’s potential qualification for his paid parental leave scheme, and then called her the “top dog”. Outrage ensued, as it became better known that Credlin – perhaps the

There is a disparity between politicians’ love of symbolism and shareholders’ love of results. Unfortunately for Prime Minister Tony Abbott, that disparity seems set to distance his government even further from the agenda of the mainstream business community in Australia. As if proposing to introduce a new levy on corporate profits and increasing the top

Electricity prices can be divided into retail and wholesale prices. Retail prices is that paid by consumers and the wholesale electricity price is the price generators receive for electricity produced. The renewable energy target (RET) affects both of these. The RET requires electricity retailers to buy renewable energy certificates (RECs) to ensure they have sourced

Uncle Sam’s crazy education deals Mining for good government Life expectancy and the age pension Youth unemployment TAI in the media Infographic Weekly Updates from TAI 1. Uncle Sam’s crazy education deals When Education Minister Christopher Pyne’s vision for a deregulated tertiary education system was outlined in the 2014-15 Budget, its details weren’t a surprise.

If Joe Hockey was actually determined to broaden the base of the GST he wouldn’t start by including food, he would start by imposing it on private school fees and private health insurance. Not only would he collect billions in revenue, he would raise it primarily from high-income earners. While the poorest Australians spend a

The government announced in the budget that people aged under 30 will have to wait up to six months to receive Newstart payments. The Treasurer expects them to have a job despite the fact there has never been 100% employment  and youth unemployment is higher than it is for everyone else. The budget papers predict

If Paul Keating’s pet shop galahs are still alive I suspect they are talking about tax reform these days. And no doubt all right-thinking galahs know that tax reform and increasing the GST is one and the same thing. The Commonwealth government will collect $363 billion in taxes this year, with state and local governments

The Government says our education system, our health care, our pensions and our social safety net are unsustainable. The big question I have is why? Every prime minister since Whitlam has managed to maintain the principles of universal health care and education. They have managed to maintain help to our elderly and less fortunate. Why

To paraphrase Winston Churchill — never in the field of budget conflict has so much been extracted by so few at the expense of so many. While the rest of us face a horror budget where we are told to keep calm and carry on, the miners are walking away puffing a cigar and doing the

Last night’s federal budget is more of a discussion starter than the final word when it comes to policy change in this term of government. Given the numbers in the Senate, the list of “new commitments” announced by Treasurer Joe Hockey are best interpreted as a wish-list rather than the likely end result.

The Imaginary Crisis The Budget Blow By Blow The Devil Is In The Detail TAI In The Media Infographic The Imaginary Crisis When the previous government introduced a resource rent tax on the miners to fund a range of government services and income support for low income earners, it was called ‘class warfare’. In last

Treasurer Joe Hockey expects unemployment to rise and business investment to fall. He plans to shed 16,000 public sector jobs into a labour market that Treasury says is softening. Indeed, Treasury states that the proportion of people who are employed or looking for work will continue to fall, “reflecting the expectation that employment growth will

Following the 2014 federal budget, support provided to older Australians through the age pension will be reduced while superannuation tax concessions will continue to rise. This will further increase the disparity between elderly Australians as well as the cost burden on the federal budget. Prior to the federal budget the cost of superannuation tax concessions

John Howard is the Ronald Reagan of Australian politics. While Reagan is deified by modern Republicans for his fiscal conservatism, in reality he oversaw big increases in government spending. But because he took from the poor to deliver to the rich they love him all the same. 

Dodgy dealings in NSW Australian Coal Industry in Structural Decline Another Warkworth Win Green Tape Recent submissions TAI Out and About TAI In The Media Dodgy dealings in NSW With ICAC bringing down the likes of Assistant Treasurer Arthur Sinodinos and NSW Premier Barry O’Farrell over the Australian Water Holdings affair, it’s easy to miss

Economics textbooks have a pretty depressing story to tell aspiring business owners. It can be summarised as, “Don’t bother. You will never make any money and even if you do, your success will attract new competitors who will push your price and profits down.” But don’t worry, no one pays economists for the accuracy of

Despite the skill of individual musicians, orchestras still need a conductor to bring the whole performance together. It is one thing to know how to play the horn, but someone needs to decide when the best time to honk it is. This week the Abbott government sounded like an orchestra without a conductor – there

This week has given us not one, but TWO, examples of why Australia needs The Australia Institute, and why your support is so important. As a supporter of TAI, you will have heard from us many, many times – since 2009 in fact – that superannuation tax concessions are costing the federal budget billions of

You only get one chance to make a first impression and, if you are treasurer, you only get one chance to deliver your first budget. Joe Hockey has been talking up his determination to make savage cuts and “end the age of entitlement” for months but, with public support for the Abbott government continuing to

Like buying a house, it’s easy to get a free trade agreement if you don’t care what you get or how much you pay. Since coming to office, Prime Minister Tony Abbott has closed a number of free trade agreements in record time, and it shows.  The so-called free trade agreement with Japan ensures Australia

The great Australian lock out Rio’s luck dries up Veggies with benefits Are banks the biggest, meanest monopoly going? Recent media Recent publications The great Australian lock out Furthering the Institute’s work on equity, we recently made a submission to the Senate inquiry into affordable housing, finding firstly that, although most Australians (67%) own their

Productivity is easy to define, hard to measure and impossible to predict. But there is a big difference between how much we talk about something and how much we understand about it. For economists, productivity refers to the amount of output that can be produced per unit of input. Profit, on the other hand, fluctuates

Like his decision to spend $5 billion a year on a new paid parental leave scheme, Tony Abbott didn’t seek cabinet approval to restore knights and dames to Australian society. While Joe Hockey might want to end “the age of entitlement”, the Prime Minister certainly seems to feel pretty entitled to do as he pleases.

Like Qantas, the problem with the Commonwealth’s budget is a lack of revenue. If Qantas were to increase fares by about 3 per cent they would be back in the black, but for the time being at least, Alan Joyce has his eyes set on maintaining market share rather than maximising profits. Similarly, the Commonwealth budget

Claim The gas industry regularly claims that it is a large employer. Facts Because of the industry’s size the Australian Bureau of Statistics (ABS) does not publish separate figures for the gas industry. The latest employment figures for the oil and gas industry (November 2013) show that these two industries combined employed 23,200 people. The

Former Independent MP Tony Windsor today launched The Australia Institute’s new research paper on coal seam gas (CSG) at Parliament House in Canberra. The paper aims to bust many of the myths used by the gas industry to justify the expansion of CSG in Australia. Listen to Tony Windsor speak to Fran Kelly from Radio

Tony Abbott recently described the people who take the chainsaws to Tasmania’s native forests as ”the ultimate conservationists”.Seriously. In his speech to the 2014 Forestworks Dinner, the Prime Minister claimed that because the loggers’ future income depends on the availability of trees, they – and not the derided greenies – are the true custodians of

The economy has become a symbol for politicians to exploit rather than a system for them to manage. Prime Minister Tony Abbott’s recent speech about Tasmania highlights that talking about the economy is something politicians like to do, but making good economic decisions has become an optional extra. While Mr Abbott claims that no government