May 2018
23.9 tax ‘speed limit’ arbitrary at best
A new report from the Australia Institute shows the recently announced 23.9 tax-to-GDP cap is entirely arbitrary, and that a strict tax cap with no policy change will severely limit choices in Government spending. The report shows 23.9 per cent is the average tax-to-GDP ratio between the introduction of the GST and the Global Financial
Don’t blame it on the deficit: WA
A report released today by the Australia Institute’s Centre for Future Work shows Western Australia’s recent budget deficit is the result – not the cause – of deteriorating economic conditions.
April 2018
What do Australians think large companies would do with a tax cut
A new national poll has asked 1,557 Australians what they think large companies are likely to do with a company tax cut. A majority (61%) of respondents think that increasing worker’s pay would be the very bottom of the list of priorities for large companies receiving a tax cut. 63% think increasing executive pay, and
The Liberals’ immigration plan is working all too well
Peter Dutton’s best argument for Australia to lower its annual immigration intake is one word: Sydney. Australia’s largest city has been made crowded, slow, expensive and unproductive by decades of unplanned immigration. [This article was first published in the Australian Financial Review – here] Anyone planning an event knows that it makes a lot more
Australia is a low tax country
Open letter calls for more tax, not less in order to address inequality and ensure ongoing prosperity as Australia Institute research shows Australia ranks 8th lowest of 35 OECD members in tax to GDP. The open letter is signed by prominent economists and public figures including former PM&C Secretary Dr Michael Keating, Nobel laureate Peter
Wages Crisis Has Obvious Solutions
Mainstream economists and conservative political leaders profess “surprise” at the historically slow pace of wage growth in Australia’s labour market. They claim that wages will start growing faster soon, in response to the normal “laws of supply and demand.” This view ignores the importance of institutional and regulatory factors in determining wages and income distribution. In fact, given the systematic efforts in recent decades to weaken wage-setting institutions (including minimum wages, the awards system, and collective bargaining), it is no surprise at all that wages have slowed to a crawl. And the solutions to the problem are equally obvious: rebuild the power of those institutions, to support workers in winning a better share of the economic pie they produce.
Company tax cuts are a costly budget buster
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
New record lows for foreign aid: report
Since the Coalition’s 2014 decision to cut foreign aid funding by $1.4 billion per year, Australia’s foreign aid record has not improved, with the 2017-18 Budget representing new lows for aid funding, a new report from policy think tank The Australia Institute finds. The reports suggest that Australia’s aid spending, already at record lows, could
March 2018
The Difference Between Trade and ‘Free Trade’
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
WTF2050 Episode 6 – Kirsha Kaechele
Kirsha Kaechele is perhaps better known as the partner of David Walsh, founder of MONA. That is, however, the least interesting thing about her. Kirsha is an American contemporary art curator, artist, and founder of KKProjects and the Life is Art Foundation. Her WTF2050 goal would place Tassie at the center of the Internet Economy.
WTF2050 Episode 1 – Saul Eslake
#WTF2050 Hosts Leanne Minshull & Anna Bateman drop in on independent economist and proud Tasmanian, Saul Eslake. In this, our first episode, Saul gives us a tour of his home, originally built by convicts in 1820. While sharing his WTF2050 goal Saul provides some fascinating insights into Tasmania’s economic & social history, and finds time
Australia’s obscene dividend imputation debate about who is poor
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
68% of PM’s electorate oppose company tax cuts
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
How some of the wealthiest Australians pay ‘negative’ tax
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
February 2018
Response to ‘How company tax cuts got killed’ in The Australian Financial Review
On Friday 16 February the Australian Financial Review published an opinion piece on company tax and argued that The Australia Institute ‘undermined a policy that woud have created jobs, profits and a bigger economy’. Generally this is a good article which sets out how The Australia Institute undermined the Government’s plan to cut company taxes,
Australians don’t hate big business, but they do hate the tax cut campaign
I’m proud that The Australian Financial Review thinks that my colleague Ben Oquist and I ran a “well-orchestrated thought campaign” against the BCA’s call for a $65 billion tax cut, but, to be honest, defeating it in that debate wasn’t difficult. [First published by the Australian Financial Review – here] Indeed, while Aaron Patrick’s piece titled “How company tax
Tasmanians don’t believe company tax cuts will increase wages
New polling released today by The Australia Institute Tasmania shows that even Liberal voters in the state do not believe that company tax cuts will increase workers’ pay. The poll of 925 Tasmanians, conducted by ReachTEL for The Australia Institute, found only 10.8% believed that giving large companies a tax cut would increase workers’ pay,
The Coalition of free-market freeloaders
The word “ideology” has a bad name these days but, as we are beginning to see, it is surprisingly hard to govern a country without one. Take, for example, the ideology of small government often associated with conservative governments like that of Mr Turnbull’s. [First published by the Australian Financial Review – here] Last week
Company Tax: Research promoted in TV advert challenges $65 billion cuts
A TV advertisement which will begin airing nationally today features research from The Australia Institute into the government’s $65 billion dollar company tax cuts plan. Building on research showing a lack of evidence that company tax cuts promote either jobs or growth the advertisement identifies the likelihood that the gift to the corporate sector will
January 2018
Gas And Coal Watch
“Burning something to boil water to create steam is a really old-fashioned technology…” The Australia Institute has spent the hot summer days monitoring when gas and coal power plants trip, taking sometimes hundreds of megawatts of power from the grid at unpredictable times. In contrast, solar power is taking pressure of the grid by delaying
Scare Tactics for Corporate Tax Cuts Do Not Stand Fact Checks
In the wake of the Trump Administration’s success in pushing a major company tax cut through the U.S. Congress, the Australian Treasurer has stepped up his calls for reduced company taxes here. He claims Australia will bypass the growth-inducing benefits of these tax cuts, but Dr. Anis Chowdhury, Associate of the Centre for Future Work, has compiled the economic evidence. The U.S. experience shows no statistical evidence of any “trickle-down” growth dividend from company tax cuts.
Energy policy based on feelings doesn’t help consumers
Just as many politicians choose to ignore the evidence of criminologists when designing crime prevention policy, the majority of Australian politicians choose to ignore economic evidence in the design of Australian energy policy. That’s OK. There’s no mention of role of evidence in the Australian Constitution and there’s no obligation on parliamentarians to base policy
December 2017
Polling shows Americans and Australians united in opposition to cutting company tax
ReachTEL polling released today by The Australia Institute, asked voters in three blue-ribbon Liberal electorates about cutting the company tax rate. The poll comes as proponents of the cuts site the progress of deeply unpopular Republican tax plans as a reason for Australia to follow suit. The GOP tax plan has been widely repudiated by
Curing Affluenza – How To Buy Less Stuff And Save The World
“Affluenza is that strange desire we feel to spend money we don’t have to buy things we don’t need to impress people we don’t know . . .” A truly modern affliction, affluenza is endemic in Western societies, encouraged by those who profit from a culture of exploitation and waste. So how do we cure
November 2017
Plan to use Trump tax cuts to boost Australian case backfires
As advocates of cutting corporate taxes have attempted to cast Donald Trump’s tax cuts as a reason for Australia to follow suit, analysis of the plan has exposed more evidence of the flaws in the economic case for the Coalitions’ planned big business handout which would cost the budget $65 billion dollars. The report from
Job Growth No Guarantee of Wage Growth
Measured by official employment statistics, Australia’s labour market has improved in recent months: full-time employment has grown, and the official unemployment rate has fallen. But dig a little deeper, and the continuing structural weakness of the job market is more apparent. In particular, labour incomes remain unusually stagnant. In this commentary, Centre for Future Work Associate Dr. Anis Chowdhry reflects on the factors explaining slow wage growth — and what’s required to get wages growing.
Queenslanders – North and South – back Adani loan veto: poll
A new ReachTEL poll of over 2,181 Queenslanders, commissioned by The Australia Institute, has found strong support for Queensland parties choosing to veto a federal subsidised loan for the Adani coal project. To accompany the polling (full results in PDF below), The Australia Institute has also released new research on the economic case for the
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