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

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

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

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.

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

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

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

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

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 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

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

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

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.

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,

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

by Richard Denniss[Originally published on The Guardian Australia, 03 April 2019] Riddle me this: if “free market” politicians think that the role of governments is to get out of the way, then what do they do all day while “managing the economy”? Interest-rate policy has been delegated to the Reserve Bank of Australia and the

Australia Institute research shows that the Marshall Government should heed the call of the South Australian Council of Social Services and delay the introduction of their tax cut for property investors. “With the state facing a growing revenue shortfall, which puts the funding of public services like health and education under strain, the tax cut

New research from The Australia Institute shows by 2024-25 when the income tax cuts are fully implemented, the benefits will overwhelmingly go to high-income earners. The Australia Institute has today issued a report modelling the distributionary effect of the accelerated income tax cuts, which reveals 54% of the tax cut benefits goes to the top

You would think that after 5 consecutive years of wage forecasts that wildly overestimated actual experience, the government might have learned from its past errors – and published a wage forecast more in line with reality. But not this government. They are still trying to convince Australian workers, who haven’t seen real average wages rise in over 5 years, that better times are just around the corner. And rosy wage forecasts are helpful in justifying their equally optimistic revenue forecasts: since if Australians are earning more money, they will be paying more taxes!

Australians tend to bring a fair bit of swagger to international comparisons of economic performance. After all, Australia has experienced twenty-eight consecutive years of economic growth without a recession—a record for industrial countries. We are the ‘lucky country’, with one of the highest material living standards in the world, a wealth of natural resources, and a ‘no worries’ ability to withstand global economic shocks.

New polling from The Australia Institute shows South Australians overwhelmingly think increasing funding for public services is a far more effective policy for encouraging jobs and economic growth than the SA Government’s land tax cut for property investors. The government’s cuts to land tax, which take effect in 2020, will increase the tax-free threshold while

by Ebony Bennett[Originally published in the Canberra Times, 23 March 2019]  Australia has never had a federal treasurer who wasn’t a man and has had more finance ministers named John than female finance ministers. It doesn’t take an economics degree to know those numbers are a problem. With the federal budget near, we learned this

Like a dog that doesn’t know what to do when it catches the car it’s been chasing, the business community doesn’t seem to know what to do now they’ve pushed wages growth to record lows and the profit share of GDP to all-time highs. While some might read the room, bank their gains and mouth some platitudes about sharing said gains, the Business Council of Australia (BCA) and the Coalition are not for turning.

The Australia Institute surveyed a nationally representative sample of 1,536 Australians about government support to assist farmers to harvest solar energy and sell it directly to clients. Key Findings: Respondents were asked if they support allowing farmers who generate wind or solar power on their farms to sell it directly to other landholders. ·  Overwhelming

124 labour policy experts have today published an open letter calling for proactive measures to help accelerate the rate of wages growth in Australia’s economy. The legal experts, economists, and other policy analysts agreed that “stronger wages in the future would contribute to a stronger, more balanced and fairer Australian economy,” and they proposed several broad strategies to boost wages.

A unique conjuncture of economic and political factors has created an opportunity for a historic change in the direction of Australia’s workplace and industrial policies. That’s the conclusion of Dr. Jim Stanford, Economist and Director of the Centre for Future Work, in a major review article published in Economic and Labour Relations Review, an Australian academic journal.

There has been a lot of discussion about “living wages” in recent years – in Australia, and internationally. And now the idea has become a hot election topic. The ACTU wants the government to boost the federal minimum wage so it’s a true living wage. Opposition leader Bill Shorten has hinted he’s open to the idea. Business leaders predict economic catastrophe if the minimum wage is increased.

After decades of uninterrupted economic growth, how is it that we all still feel so poor? It’s the question that leading Australian economist, Dr Richard Denniss, gets to the heart of in his newest book Dead Right: How neoliberalism ate itself and what comes next. In a national book tour, starting next week, Denniss will