The Fair Work Commission has ruled that penalty rates for Sunday and public holiday work in the retail and hospitality sectors should be reduced, which would reduce hourly wages on those days by up to $10 per hour. Business lobbyists predict this will spark a hiring surge in stores and restaurants, as employers take advantage of lower wages to extend hours and ramp up operations. The economic logic of this claim is highly suspect, however – especially in light of the fundamental factors which truly limit employment in these sectors (namely, the sluggish growth of personal incomes). 78 Australian economists have signed a public letter debunking these job-creation claims, arguing that the FWC’s decision will lead to more inequality, not more employment.

Two days after demanding $48 billion worth of tax cuts, BCA president Grant King warned us that “if we don’t make changes, if we don’t get on top of the budget deficit, debt is going to be rising and it will be a burden for generations to come”. [This article was first published by the Australian Financial

The Australia Institute has calculated that denying tax cuts to those companies with revenue over $10 million would exclude only 1.4 percent of companies. Despite making up only 1.4% of companies, the $10 million+ group account for 78 percent of company tax collections and would therefore take the lion’s share of the benefit from the Coalitions original

On April 1, Australia will surpass the Netherland’s old record to mark the longest unbroken expansion of real GDP in modern history. While this result permits much chest-thumping on the part of some politicians, we should never assume that there is an automatic correlation between GDP growth and the well-being of people, society, and the environment.

Analysis from The Australia Institute’s Centre for Future Work has shown that proposals for phasing in lower penalty rates for work on Sundays and holidays will not “protect” the workers affected by those cuts, and in some cases would make things worse. Simulations of various proposals from political and business leaders for deferring lower penalty

Polling of the marginal seat of Dickson, the seat held by Peter Dutton, shows strong opposition to two Coalition policies before the current parliamentary sitting – welfare cuts, and cutting the company tax rate. The survey, conducted by ReachTEL for Canberra-based think tank The Australia Institute, asked respondents if the government should cut, keep the

This was first published in EcoGeneration online on 8 March 2017 and in the print edition. The common view of invention is that it is unexpected. The people who do it are extraordinary individuals. There are risk takers but also naturally creative geniuses. Ancient Archimedes came up with his theory of buoyancy by his spontaneous

Are there any economic rationalists left in the Australian business community? Where are the fiscal conservatives when you need them? [This article was first published in the Australian Financial Review – here]  Hard headed budget hawks are missing in action when it comes to our governments giving a $1 billion subsidy to help build the

The Coalition Government is still paying a heavy price for Tony Abbott’s “ability” to simplify complex policy issues down into three-word slogans. His promise to “stop the debt” worked a treat for him in opposition but it made him look a failure as Prime Minister when debt grew rapidly on his watch. [This article was

Voters in Braddon do not want to see workers paid less on Sundays and Holidays, polling from The Australia Institute has found. The polling of 754 respondents in the electorate of Braddon was undertaken on 2nd March   in the State electorate of Braddon through ReachTEL. Respondents were asked if they believed more jobs would be

The Fair Work Commission unveiled its long-awaited decision on penalty rates for Sunday and holiday work this week. Penalty rates for most retail and hospitality workers will be cut, by up to 50 percentage points of the base wage. Hardest hit will be retail employees: their wages on Sundays will fall by $10 an hour or more. For regular weekend workers, that could mean $6000 in lost annual income.

New polling of Dawson, the seat held by George Christensen, conducted by ReachTEL, commissioned by The Australia Institute, shows support for Pauline Hanson’s One Nation party at level pegging with the LNP at 30% of the primary vote. Issue-based questions in the same poll revealed strong support in Dawson for an increase to the renewable

The Fair Work Commission’s decision to reduce penalty rates for Sundays and holidays in retail and hospitality jobs will reinforce wage stagnation and further widen income inequality, which is bad news for the economy as a whole, according to Dr. Jim Stanford, Director of the Centre for Future Work at the Australia Institute. “It’s painfully

As the mining boom ends, the mining clean-up boom is beginning. New research from The Australia Institute released today shows that there is minimal information available to the public on how the clean-up is progressing. The report, Dark side of the boom: What we do and don’t know about mines, closures and rehabilitation in New

New polling conducted by ReachTEL for The Australia Institute of the electorates represented by Malcolm Turnbull and Tony Abbott reveals strong opposition for cutting the tax rate, particularly for larger companies. Both electorates registered more support for increasing the company tax rate than cutting it. In the Prime Minister’s electorate of Wentworth 43% supported an

Malcolm Turnbull is using Donald Trump as a celebrity endorsement for his plan to give corporate Australia a $50 billion tax cut. But, like all dealings with people who are famous for being famous, the risks can be greater than the returns. Take Trump’s views on free trade. First published by the Australian Financial Review

New research counters argument that Australia must ‘compete’ with other countries by lowering its company tax rates in order to encourage foreign investment. The report shows that 71 per cent of foreign investment applications come from countries with company tax rates lower than Australia’s rate. Recent foreign investment flows have increased rapidly from countries with

When politicians spend taxpayers money flying themselves to fundraising parties or flying to their own weddings, we leave it up to the politician to decide if their claim is “outside of entitlement”. First published on The Guardian – here When it comes to income tax we allow people to claim $300 worth of tax deductions without receipts because

The travel rorts scandals make the Turnbull government look like it’s out of touch, but its plans to give $50 billion in company tax cuts over the next 10 years are about to prove it beyond doubt. First published in the AGE and Canberra Times – see here.  This time last year Prime Minister Turnbull

This op-ed was first published on 19 December on Crikey here > https://www.crikey.com.au/2016/12/19/rudd-gillard-and-abbott-cut-taxes-a… The debate surrounding MYEFO and whether Australia has a credible path back to a surplus should start by remembering how we got here. If Scott Morrison had delivered much of Peter Costello’s taxation ratio the budget would not be in deficit today. This

The Australia Institute have today published Taxing times: The impact of the GFC on tax revenue in Australia which models the sharp decline in Australian budget revenues against a scenario where pre-GFC tax ratios were maintained. This research shows that the main factor leading to the post-GFC deficits and the accumulation of government debt has

The notion of evidence-based policy in Australia is dead. While it’s been in poor health for some time, it was finally killed by the Coalition backbench last week and replaced with “gut instinct” and “the pub test”. First published by the Australian Financial Review – here When Deputy Prime Minister Barnaby Joyce was recently quizzed

The Western Australian government’s state owned Forest Products Commission (FPC) is logging WA’s native forests at a financial loss to the state, as shown in a new report from The Australia Institute, titled Barking Up the Wrong Trees. “The people of Western Australia are losing jarrah and karri forests, and in the process making a

The Australian Bureau of Statistics has released a larger than expected fall in GDP, putting the economy into negative growth at -0.5%. GDP at the lowest rate since 2008 at the height of the Global Financial Crisis. The biggest single culprit to the fall in growth was reduced government capital expenditure. Government capital spending, which

The Australia Institute has assessed the proposal for a $5 levy on iron ore in Western Australia. The policy should be supported as a pragmatic alternative to a resource rent tax. The analysis finds that if the $5 levy had been imposed on relevant production over the last five years it would have raised $11.5

Just as market forces were about to push the price of housing down in Australia, the Treasurer stepped in with some new regulation. Phew. Some first home buyer’s nearly snatched a good deal, but luckily the Treasurer was there to protect the property developers from the oversupply their building bonanza created. [First pubished by the

New research from The Australia Institute has revealed that Norway’s sovereign wealth fund, known as ‘Oljefondet’, has US$280 million invested in Ferrovial. After its takeover of Australian company Broadspectrum, Spanish company Ferrovial is now responsible for the biggest contract to run Australia’s offshore detention camps. The offshore detention camps are notorious for human rights abuses,