Articles & Opinions
June 2012
Newman is digging in wrong hole
In his televised address, Premier Campbell Newman warned Queenslanders that spending cuts were needed to rein in debt. This follows his announcement that the state cannot afford to pay 20,000 public-sector workers. But how can this be when Queensland is the second most resource-rich state in the middle of the biggest mining boom in Australia’s
Politicians rarely know best
The latest tragic loss of lives as asylum seekers literally risk everything to make a better life for their families highlights both the consequences and the absurdity of some of the policy positions adopted by Australian politicians. Politics, like democracy, often has more to do with compromise than with consistency. But building a nation does
The budget conundrum
As our population continues to grow rapidly, the government is faced with choices is doesn’t like to make. According to the latest census, Canberra’s population has grown by 9.9 per cent (compared to 7.9 per cent nationally) in the past five years – a growth, which among other things, places incredible pressure on the ACT
Our highlights of the past six months!
It’s that time of year again when we appeal to your generous nature, your love of progressive ideas and your support for ‘research that matters’ …. and your ability to claim it back as a tax-deduction!For us, it’s an opportunity to show you what can be achieved and why we think Australia needs The Australia
Events
Politics in the Pub – Father Frank Brennan AO Australia’s 20 year search for a coherent, workable and moral asylum policy 2012 marks 20 years since the policy of mandatory detention of asylum seekers was introduced by the Keating Government. Today, more than 4000 asylum seekers are being held in immigration detention, 460 of those
Bosses flunk training 101
The business community has spent 20 years pushing tirelessly for labour market flexibility but, now that it has it, some have figured out that it is a double-edged sword. In a flexible labour market, wages for skilled workers in high demand can rise really quickly. Who knew! Last week the Business Council of Australia (BCA)
The Institute’s 2012 so far in numbers
12 – research papers, compared to eight in the first six months of 2011 (on issues ranging from the impact of the mining boom, to the inadequacy of unemployment benefits, access to legal aid, pokies reform and the use and abuse of economic modelling) 18 – the number of years since The Australia Institute was founded
LOVE YOUR THINK TANK
On Valentine’s Day in February we launched our LOVE YOUR THINK TANK fundraising drive with the goal of reaching 100 people who each month can help us work towards a more progressive Australia. We’re delighted to say that we are just over half way towards reaching our target, with 54 people now signed up as
What’s coming up in the next six months?
In the coming weeks we will be publishing new research on the rise and rise of the big banks, the economics of coal seam gas and fugitive emissions, and mapping loneliness in Australia. Further down the pipeline is work on the availability, affordability and quality of childcare, the importance of the co-operatives sector, and as
Media highlights
We don’t want our research to sit on a shelf collecting dust – our aim is to influence the debate, whether that’s via Lateline, Today Tonight, Crikey, The Global Mail, Sky, The Project, Triple J or Radio National Breakfast. And sometimes we’re lucky enough to land two spots on the ABC in one night, like
Pharmacists’ special case
Why can the Pharmacy Guild get away with a deal with the government which limits competition? Rather than admit that it is a union working to maximise the income of its members, the Pharmacy Guild of Australia prefers to position itself as a ”professional association” concerned more with improving standards and delivering benefits for the
Miners cause problems then complain about them
Like a man who buys a cheap house next to a pub and then complains that the noise late at night is depressing his house price, the Minerals Council has come out and complained that Australia is now an expensive place to do mining. The Minerals Council of Australia released a report by Port Jackson
May 2012
Debt is not the villain
The idea that the Coalition would oppose an increase in the Commonwealth’s debt ceiling makes about as much economic sense as its hostility to a market-based mechanism to address climate change. But, as with most of Tony Abbott’s big calls, it clearly makes good short-term political sense. In an age of slogans it is much
A tax on the developers
It is the perceived value of a location, not the cost of construction, that determines the market price for housing. It’s amazing how progressive business has become in Australia. The mining industry’s biggest concern seems to be creating jobs for migrants. The banks just want to help small business grow and the property developers of
Environment Protection and Biodiversity Act -The green tape slugfest that is the EPBC Act
Nothing gets interest groups more riled up than a proposal to reduce some regulation or, as business groups like to call the federal Environment Protection and Biodiversity Act (EPBC act), “green tape”. In the green corner, we have the major environment groups arguing that such reductions signal further retreat by government in the face of
Fantasy Budget Richard Denniss on Broadening the Tax Base
Despite all the hoopla, budgets in Australia are rarely transformative or reforming. Indeed, it’s only the theatre and spectacle of budget night that means most people even notice it. If we started each budget with a blank sheet of paper it is inconceivable that year after year we would fund portfolio areas in virtually identical
Self-serving regulation
The economics of deregulation is supposed to be straightforward: business groups support it, community groups oppose it, and governments “get the balance right”. The recent push to streamline state and federal environmental and planning laws has followed exactly that script. The push to remove so-called “green tape” has the appearance of a philosophical position based
How much tax is enough?
While it is impolite to say so these days, Canberrans don’t pay much tax. While this week’s Commonwealth budget as well as the ACT’s review of the territory’s tax system back up this conclusion, it is unlikely to have much impact on the calls for lower taxes to take the pressure off the cost of
The Australia Institute’s ‘Budget in Reply’
The Treasurer has just done the books for Australia and many of you will be preparing to do your own as the end of the financial year approaches. Don’t forget that all donations of $2 and above to The Australia Institute are tax-deductible. So if you’ve enjoyed receiving Between the Lines, please consider donating before
Thank you for helping us go viral!
Thank you to all our Facebook and Twitter fans who contributed to the great success of our ‘Is Australia a high tax country?‘ infographic. It has had more than 25,000 views and more than 1,700 shares. Not bad for our first attempt! Over the coming months we hope to release a steady flow of infographics
Recent media
As the miners look tough, the government looks weak, Crikey, 7 May Super changes penalise rich, ABC (PM), 3 May NAB keeps a bit on the side, giving rivals excuse to avoid full rate cut, The Canberra Times, 3 May Banks hoard rates cut despite huge pressure, The Daily Telegraph, 3 May End the price
What history teaches us about a boom
Reading this year’s budget one is reminded of the cargo cult mentality that was expressed by Treasury in the late years of the Fraser government. Substitute Japan for China and this could be 1979 or 1980. At the time, then Treasury head John Stone lectured the nation on how it needed to import more rather
A promise delayed is a promise denied
In spite of the Treasurer’s boast of an economy “that has earned us a AAA-rating from all three major ratings agencies for the very first time in our history”, with a GDP of 1.5 trillion dollars, low unemployment (4.9%), low inflation (1.6%) and low interest rates (3.75%), the 2012 budget has failed to find an
Flick pass to Glenn Stevens
The government’s obsession with achieving a surplus of one per cent of GDP seems to be the new medium term goal around which spending decisions have to conform. As the budget papers put it: In current circumstances, fiscal policy should be concerned with restoring the budget to a position consistent with the Government’s objective of
Spreading the benefits of the boom only so far
Budget speeches are always carefully scripted to try and influence how the media frames its coverage. This year the main message the government wanted conveyed was that it is spreading the benefits of the mining boom. But as is so often the case, the budget papers belie the priorities outlined in the Treasurer’s speech. Beyond
The missing $24 billion
Budgets are usually summarised with clichés: smoke and mirrors, robbing Peter to pay Paul or the devil is in the detail. If this budget had a cliché it would be ‘missed opportunity’. The government, having locked itself into a political commitment to ensure the budget is in surplus by 2013, was forced to confront a
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