June 2019
SA Budget: More Tax Cuts for the Wealthy While Everybody Else Pays
The Marshall Government’s 2019-20 Budget, which doubles down on tax cuts for wealthy property investors while slugging regular South Australians with increased fees and charges, is a disappointing missed opportunity, independent think tank The Australia Institute says. “Increased fees and cuts to services are the price South Australians are being forced to pay because of
Men will get almost twice the benefit from later stages of unlegislated income tax cuts as women: new research
The final stage of the Morrison Government’s unlegislated income tax plan, stage 3(a) favours males by a ratio of almost two to one, according to a new distributional analysis from The Australia Institute’s senior economist Matt Grudnoff. The Morrison Government is yet to legislate the additional tax cuts announced in the 2019-20 Federal Budget,
Australia can Follow Finland to Reverse TAFE and Training Crisis
Australia should consider whether it wants a higher education and vocational training system more like that of Finland or more like the USA, according to a new report from The Australia Institute’s Nordic Policy Centre. The report, co-authored by Professor Andrew Scott, Emeritus Professor Tor Hundloe and Mr Shirley Jackson, shows Australian vocational training is
Budget Warning for State Gov: Voters Reject Service Cuts, Privatisation
New research from The Australia Institute has found that two out of three voters want the State Government to make up the $517 million GST shortfall announced in the Federal Budget by increasing taxes on wealthier South Australians and property investors. The least popular way for the government to balance the books in its upcoming
Tax cuts are a bad bet on a wobbly future
by Richard Denniss[Originally published in the Australian Financial Review, 11 June 2019] How good is the Australian economy? Not very. It’s as if months of prime ministerial promises that the economy was strong had absolutely no impact on employers’ desire to boost wages or consumers’ ability to spend. GDP growth is at its lowest levels
WTF2050 Episode 13 – Andrew McPhail – Independent Film Producer
Andrew introduces us to the term ‘weightless exports’ – think digital services and games rather than wood or food. Inspired Leanne and Anna sat down with Paris Buttfield-Addison, cofounder of Hobart based Secret Lab – Secret Lab builds video games and mobile apps, and teaches game and app development through books and online training. Secret
WTF2050 Episode 12 – Frank Cuypers – Destination Think
Prof. Frank Cuypers is a marketing and tourism academic brought to the island by Tourism Tasmania to share his thoughts on the future of tourism. He talks about the strength of our clean and green Tasmanian brand and the global hunger for authentic experienced based Tourism. Also in the episode an interview with Charles Munn,
WTF2050 Episode 11 – Louise Morris – Insect Farmer, Rebel Foods, Derby Tasmania
Louise’s insects are on the standing menu at MONA Faros restaurant, as featured on many fine menu’s across Tasmania. Her Protein Plus Nut Butter blends stocked at East Coast Village Providore (St Helens) and newly opened Derby Providore. In this episode Anna & Leanne discover organic insect farming from inside a shipping container on a
May 2019
New Analysis: Over 50% of Stage 3a Tax Cuts Benefit to go to Highest Income Earners
New income distributional analysis from The Australia Institute senior economist Matt Grudnoff shows the Morrison Government’s proposed Stage 3(a) income tax cuts announced in the 2019-20 Federal Budget, to come into effect 2024-25, will overwhelmingly benefit high-income earners with over 50% of the benefit going to the top 20% of taxpayers, while the bottom half
Where To Now for Union Campaign? Workplace Express
The unexpected results of the 2019 Commonwealth election have sparked many commentaries regarding what happened, and why. This article, reprinted with permission from Workplace Express, considers the role of the major #ChangeTheRules campaign mobilised by Australian unions in the lead-up to the election – and ponders the movement’s next steps in the continuing debate over labour market policies and industrial relations. It cites both our Economist Alison Pennington, and our Director Jim Stanford, as well as our previous research on the erosion of collective bargaining in Australia.
Minimum Wage to Rise 3% for 2019-20
The Fair Work Commission has announced a 3% hike in Australia’s national Minimum Wage, effective July 1, taking it to $19.49 per hour. That increase is lower than the 3.5% increase implemented last year.
Scourge Pricing’: Understanding and Challenging Uber’s Business Model
Centre for Future Work Economist Alison Pennington recently gave a keynote address to hundreds of delegates at the ATIA International Taxi Conference, held this year in Gold Coast, QLD.
Bob Hawke leaves behind an important environmental legacy
by Ebony Bennett[Originally published in the Canberra Times, 17 May 2019] Bob Hawke is perhaps credited most often for his economic reforms, but he also leaves a tremendous legacy of protecting Earth’s wilderness. Without Bob Hawke, Antarctica would be a quarry, Tasmania’s iconic Franklin River would be flooded and Queensland’s Daintree rainforest would be a
Tax reform is simple: soak the rich
by Richard Denniss[Originally published in the Australian Financial Review, 16 May 2019] The political debate about tax has become unmoored from the economics of tax. The idea that cutting taxes is good for the economy and collecting more revenue is bad for the economy is not just simplistic, it’s wrong. But it should be no
Liberals Losing Grip on ‘Better Economic Manager’ Title: Young People Overwhelmingly Rate Labor Better
The Liberal Party is losing grip on their ‘better economic manager’ brand recognition with young voters (18-34 year olds) overwhelmingly rating the Labor Party as the better economic manager in Government. Key Findings: o Young people rated the Labor Party better economic managers in government than the Coalition. 44% aged 18-24 rated the Labor
Polling: Voters Still Think Coalition Will Cut Company Tax for Big Business
Almost four in ten voters think that a re-elected Coalition Government would try to cut company tax for big business, even after being explicitly told the Coalition Government had announced they would no longer pursue big business company tax cuts. Respondents were told that last year then-Prime Minister Malcolm Turnbull announced that the Coalition Government
Denying Wages Crisis Won’t Make It Go Away
As the great novelist Isaac Asimov wrote, “The easiest way to solve a problem is to deny it exists.” Business leaders and sympathetic commentators have adopted that advice with gusto, during current public debates over the unprecedented weakness of Australian wages.
Health Costs Outpace Inflation
Out-of-pocket health costs have skyrocketed compared with all other prices as measured by the Consumer Price Index, shows new analysis by The Australia Institute. The analysis using ABS data shows that health costs have more than doubled the rise in CPI with a 24 per cent increase in health costs compared with 11 per cent
April 2019
PM hides tax cut light under a bushel
The Coalition is spruiking local pork barrel projects because its poorest supporters won’t benefit from its massive tax cuts. by Richard Denniss[Originally published in the Australian Financial Review, 29 April 2019] For a man with a marketing background, it’s surprising that Prime Minister Scott Morrison has ignored the credo that ”all politics is local” when selling his
Analysis: Regional Winners and Losers from Government Tax Plan Revealed
All five Tasmanian electorates are among the biggest losers of the Government’s income tax cut plan, inner-city electorates in Sydney and Melbourne are the biggest winners, and South Australia and Central & North Queensland get at least 30% per capita less than electorates in Sydney and Melbourne. The analysis by the Canberra-based think-tank’s senior economist
Getting a go’ isn’t the same as getting a fair go
by Ebony Bennett[Originally published on The Canberra Times, 22 April 2019] Australia is having a huge national debate about taxes and tax reform that’s mostly missing the point. There’s too much focus on costings and not enough analysis of who is getting the biggest slice of pie – here’s a hint: it’s not those struggling
The Wages Crisis
Why is Australia in the midst of a wages crisis? In this episode, Follow the Money explains how we got here. Host: Ebony Bennett, Deputy Director at The Australia Institute // @ebony_bennett Contributors: Jim Stanford, economist and director of the Centre for Future Work // @jimbostanford Troy Henderson, economist at the Centre for Future Work // @troychenderson Producer: Jennifer Macey // @jennifermacey // Additional
Declare War on Global Warming, Say SA Voters as Climate Election Looms
New research from The Australia Institute, released just weeks out from the Federal Election, shows that a majority of South Australian voters want the government to mobilise all of society, “like they mobilised everyone during the world wars”, to tackle global warming. The state-wide polling also found that a majority of South Australians support a
New Analysis: $77 billion goes to those earning over $180,000
New Australia Institute modelling shows that at least $77 billion of the lost revenue from the Morrison Government’s top-end tax cut plan will benefit those earning more than $180,000, and $64 billion of that figure will go to those who earn over $200,000. The Government has claimed that the difference between its tax cut plan
Politicians are like magicians, tricking us into looking at the wrong things
by Richard Denniss[Originally published on Guardian Australia, 17 April 2019] When a magician says you must look carefully at the cards that they’re shuffling, they don’t want you to see what their assistant is doing. And when a politician tells you to focus on one key economic issue, it’s a sure thing they don’t want
Poll: North/South Divide on Climate Action Exposed as Political Myth
The much-hyped ‘North/South divide’ on climate action is a political misconception, according to new research from The Australia Institute. The research shows that the majority of Australian voters across states and poltical allegiance are concerned by climate change, and want the Government to mobilise on the issue, “like they mobilised everyone during the world wars”. Key
Economics 101 for the ABCC
The Australian Building and Construction Commission’s decision to press charges against 54 steelworkers for attending a political rally, with potential fines of up to $42,000 per person, is abhorrent on any level. No worker should face this kind of intimidation for participating in peaceful protest.
Don’t be sucked in by Frydenberg’s tax cuts econobabble
by Ebony Bennett[Originally published in The Canberra Times, 06 April 2019] Look out, it’s a trap! The centrepiece of the Coalition’s budget is more than $300 billion worth of income tax cuts. This sounds great in theory. In reality, the Coalition has committed to a radical plan to flatten Australia’s progressive tax system. If implemented,
Women get half the benefit from tax cuts compared to men
New analysis from the Australia Institute shows the gender distribution from the Government’s plan, announced in the Federal Budget, to flatten the income tax scales is skewed against women. When the tax cut is fully implemented, for every dollar of benefit that goes to women, two dollars goes to men. Figure 1. Gender Distribution of
Unpacking The 2019 Federal Budget
In this episode, Follow the Money unpacks everything you need to know about the federal budget. Producer: Jennifer Macey // @jennifermacey Host: Ebony Bennett, Deputy Director at The Australia Institute // @ebony_bennett Contributors: Richard Denniss, chief economist at the Australia Institute // @RDNS_TAI Matt Grudnoff, senior economist at the Australia Institute // @MattGrudnoff Troy Henderson, economist, Centre for Future Work // @TroyCHenderson
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