April 2009
True unemployment rate update
An analysis of new Australian Bureau of Statistics data by The Australia Institute reveals that in September 2008 there were 780,900 people who did not have a job, wanted to work but were not included in the unemployment figures. Taking account of these ‘hidden unemployed’ brings Australia’s real rate of unemployment to 11.7 per cent,
True unemployment rate now at 11.3 per cent
The number of Australians out of a job is significantly more than widely reported. An analysis of new Australian Bureau of Statistics data by The Australia Institute reveals that in September 2008 there were 780,900 people who did not have a job, wanted to work but were not included in the unemployment figures. Taking account
March 2009
Between the lines 9
Senator Fielding and the alcopops debacle. The wisdom of tax cuts. Freedom of information becomes freer?
The great superannuation tax concession rort
Superannuation is the most concessionally-taxed investment in Australia with contributions, fund earnings and payouts all receiving concessional treatment. According to Treasury, the effective marginal tax rate on superannuation savings is highly negative. This paper discusses how superannuation could be reformed to make it more equitable.
Between the lines 8
A Human Rights Act for Australia. Executive excess. Policy on the run; is policy underdone? Food security
Wong must cap and slice
The CPRS in its current form is deeply flawed. If the government wants to see the legislation passed, it is going to have to amend its proposal. In order to take advantage of every additional emissions reduction and allow every concerned citizen to make a direct contribution, the government needs to convert its ‘cap and
February 2009
An idea whose time never came
It is often said that there is nothing more powerful than an idea whose time has come. But it seems that in the case of Minister Wong’s version of emissions trading, the so called Carbon Pollution Reduction Scheme (CPRS), there is nothing more pitiful than an idea whose time never actually came. The targets are
Left and right agree carbon tax is better
The CPRS is looking more and more like a hotted up second hand car. It sounded good in the advertisement, had all the fancy bits added on and looked really shiny and ready to go. Unfortunately the closer you look at it, the less reliable it gets. It might not be as fancy, but an
Between the lines 7
Does the market have all the answers? Index of wellbeing. K Rudd bank. Newstart and the fiscal stimulus package.
Rudd neglects the ‘unworthy’ poor
The announcement of a $42 billion stimulus package, which provides thousands of dollars to families earning up to $200,000 and almost nothing to the long-term unemployed, is evidence that the Rudd Government like the Howard Government before it is distinguishing between ‘worthy’ and ‘unworthy’ recipients of government assistance.
Making life easier for emitters
The unfortunate reality is that, having waited a decade for a government to express a willingness to do something about climate change, we are now faced with a choice between a policy that locks us into failure by dictating that emissions in Australia cannot fall by more than five per cent and abandoning the CPRS
January 2009
Sloppy super
Debates about superannuation policy are often ideological in tone.People in finance and investment circles tend to forget that the majority of Australians are profoundly disengaged from their super, at least until they approach retirement. The super system is so complicated that many workers take the simplest option – doing nothing. Governments therefore have a responsibility
NL 57, December 2008
Hugh Saddler and Helen King examine the difficulties implicit in applying emissions trading to agriculture; Josh Fear reclaims your time from the telemarketers and examines the superannuation industry in Australia; David Richardson explains how accelerated depreciation would help the renewable energy industry; Richard Denniss looks at a new top tax rate; John Langmore asks whether
December 2008
Between the lines 5
An economical truth. The bogus economic case for telemarketing. Bee lines. Over a barrel.
Choice of Fund fails to engage consumers
The Choice of Fund Policy has failed to resolve widespread consumer disengagement with superannuation. As few as four per cent of workers switch super funds each year and around half of this is ‘passive’ choice due to job change or fund closure. Choice of Fund has also been largely unsuccessful in lowering the number of
November 2008
Household emissions reductions pointless under emissions trading
The introduction of an Australian emissions trading scheme in 2010 makes it pointless for households to reduce their energy use.
Between the lines 3
Government assistance to industry. New anti-SLAPP legislation in the ACT. ACMA’s recent decision on subliminal advertising. The need for wellbeing in a climate-changed Australia.
October 2008
Agriculture and emissions trading don’t mix
The Rudd Government hopes to incorporate agriculture into its Carbon Pollution Reduction Scheme (CPRS) in 2015 but this initiative is unlikely to be successful.
Between the lines 2
Why we care more about the financial crisis than climate change. The 50 per cent discount on capital gains. Whether there has been an exodus from public schools to private ones.
Tax increase on million dollar incomes could raise $450 million
High-income earners in Australia have enjoyed significant growth in their incomes over the past decade but the tax system has not kept pace.
Subsidise renewables and stimulate jobs
Calls for the introduction of accelerated depreciation provisions for investment in clean energy. Because the price of this equipment is likely to fall sharply in the coming years, firms which invest today will experience ‘first mover disadvantage’.
Electricity sector neglects renewables research
The electricity industry generates around 45 per cent of Australia’s carbon emissions so it is surprising to see so little R&D in this industry. The electricity industry should be at the forefront of exploring lower emissions and renewable technologies, but the figures suggest the industry is not serious about doing so.
Subsidise renewables and stimulate jobs
Calls for the introduction of accelerated depreciation provisions for investment in clean energy. Because the price of this equipment is likely to fall sharply in the coming years, firms which invest today will experience ‘first mover disadvantage’.
Those who earn the most care least about pensioners
While 56 per cent of Australians living in households with incomes of less than $40,000 per cent per year were willing to pay higher taxes to fund an increase in the aged pension, only 34 per cent of those with household incomes above $150,000 agreed.
Banks are exploiting the uncertainty
Discusses the extent of the profits banks will generate by not passing on the full cut in official interest rates to their customers.
Put customers before profit
Australian banks should pass on the full cut in the interest rate to their customers. The Reserve Bank is trying to stimulate the economy, not the profits of Australia’s big banks.
In a man’s working world parental leave should be about fathers, too
Originally printed in the Sydney Morning Herald. Under the Productivity Commission’s parental leave proposal, men are entitled to two weeks’ paternity leave (use it or lose it), and mothers would be allowed to transfer their 18-week entitlement to their partners. It leaves the important decision about who provides primary care up to individual families and,
Between the lines 1
Why we measure stock market performance daily, but don’t measure what really counts. The record profits of Australia’s big banks despite the ‘crisis’. The real reasons behind Australia’s doctor shortage. The Government’s review of Australia’s tax system: are we paying enough?
No 56, September 2008
Richard Denniss explains how an emissions trading scheme works; Josh Fear looks at financial choices; Gemma Edgar explores the possibility of a national compact between the government and NGOs and David Richardson writes about the problems of hidden unemployment.
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