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Economics
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May 2022
Wage price spiral or price wage spiral?
Firms like Woolworths would have still seen profit growth if they paid all of their workers a five percent pay rise and did not increase prices.
Wage growth played no significant role in the recent surge in inflation and, as the analysis shows, maintaining real wages across the entire economy as distinct from merely maintaining the minimum wage in real terms would have a trivial impact on the price level even if firms seek to recoup all of a nominal wage rise as further price increases.
Working With COVID: Insecure Jobs, Sick Pay, and Public Health
Almost one in five Australians (and a higher proportion of young workers) acknowledge working with potential COVID symptoms over the course of the pandemic, according to new opinion research published by the Centre for Future Work. The research confirms the public health dangers of Australia’s existing patchwork system of sick leave and related entitlements. The main
The Wages Crisis Revisited
A comprehensive review of Australian wage trends indicates that wage growth is likely to remain stuck at historically weak levels despite the dramatic disruptions experienced by the Australian labour market through the COVID-19 pandemic. The report finds that targeted policies to deliberately lift wages are needed to break free of the low-wage trajectory that has
Permanent and Political
Prime Minister Scott Morrison and Treasurer Josh Frydenberg have stated repeatedly that their government’s approach to stimulus spending in the wake of the covid crisis was for ‘temporary and targeted’ measures to boost economic activity in the short term without creating ‘structural pressure’ on the budget. For example, in announcing first of three stimulus packages
Educating for Care
April 2022
Homes for People
Australia’s housing affordability crisis results from over- reliance on just two options – private home ownership and private renting. To tackle it, a wider repertoire of policies is required.
At the Crossroads
If the federal government lifts annual higher education spending to 1% of GDP, it could repair the destruction inflicted by the COVID pandemic and make universities more accessible and affordable for all Australians, according to new research from the Centre for Future Work at the Australia Institute. The report analyses the current worrying state of
Dam bad ideas
The Coalition government has committed $7.4 billion to the construction of new dams and water infrastructure in Australia, the vast majority of which will be spent in North Queensland even though only 1.1% percent of Australians live in that region and 97 percent of agricultural production occurs outside of that region.
Youth unemployment and the pandemic
Young Australians have been disproportionately impacted by the COVID-19 pandemic. Young people make up just 14% of the workforce but bore 55% of the job losses during the 2021 lockdowns. This crisis has compounded decades of high youth unemployment and underemployment. Now is the time for long-term policies to help and protect young people in
Bearing the Brunt
The COVID-19 pandemic has exacerbated labour market problems for young people in NSW. By several measures, young people in NSW have been the hardest hit in Australia. There are a range of policies available to the NSW Government to address this crisis.
The Economic Benefits of High-Quality Universal Early Child Education
Expanded ECEC services would provide a badly-needed boost to Australia’s economic recovery from COVID-19.
Boothby Polling – April 2022
uComms conducted a survey of 801 residents in the SA Federal seat of Boothby on behalf of The Australia Institute during the evening of 30 March 2022 using self-completed automated voice polling methodologies.
Sturt Polling – April 2022
uComms conducted a survey of 809 residents in the SA Federal seat of Sturt on behalf of The Australia Institute during the evening of 30 March 2022 using self-completed automated voice polling methodologies.
March 2022
Give Me Money
The Business Council of Australia (BCA) is again proposing a cut in company tax rates. There is little that is new: the BCA has been advocating this proposal or a similar one ever since it came into existence in the early 1980s. Currently, the BCA proposes to cut by way of increasing the threshold below
Impacts of beer excise rate cut
Proposals to halve the beer excise would cost around a billion dollars over the next five years and undermine policies to reduce the abuse of alcohol.
Fragmentation & Photo-Ops
Strong vocational education and training (VET) systems are vital to the success of dynamic, innovative economies and inclusive labour markets. Australia’s VET system once provided well-established and dependable education-to-jobs pathways, but a combination of policy vandalism and fiscal mismanagement plunged the VET system into a lasting and multidimensional crisis. During the pandemic, the federal government
Fair Go Gone: Stage 3 tax cuts and LMITO by occupation
The stage 3 tax cuts will give occupations like CEOs of large corporations, surgeons, and federal politicians a $9,075 a year tax cut. While aged care workers, hairdressers, and café workers will get nothing. When the LMITO ends teachers, nurses and chefs will pay $1080 more in tax.
February 2022
Polling – February 2022 – SA Borders and COVID
The Australia Institute surveyed a representative sample of 602 South Australians about the State Government’s handling of COVID-19 and the opening of the state borders on November 23, 2021. The results show that: One in two South Australians (51%) disagree with the State Government’s decision to open the borders in November. Two in five (42%)
Rich Man’s World
The stage 3 tax cuts will go mainly to male, high income taxpayers. Half will go to the top 10%, 72 per cent going to the top 20 per cent while the bottom half get only five per cent and the bottom 20 per cent get nothing. Men will get twice as much of the
9 in 10 Taxpayers to Pay More Tax Under Current Government Plan to Scrap LMITO
An electorate analysis of the Federal Government’s current plan to scrap the LMITO (Low and Middle Income Tax Offset) after 2021-22, shows most taxpayers will be worse off when the legislated Stage 3 tax cuts to high income earners comes into effect in 2024-25. Key Findings: Scrapping the LMITO will see 90% of taxpayers pay
Rebuilding Vehicle Manufacturing in Australia
Global automotive manufacturing is rapidly transitioning to the production of Electric Vehicles (EVs) in line with technological advancements and the global community’s commitment to addressing climate change. This transition presents an enormous opportunity for Australia to rebuild its vehicle manufacturing industry, taking advantage of our competitive strengths in renewable energy, extractive industries, manufacturing capabilities, and
January 2022
Money Talks
Investors in mining are backing electrification resources over fossil fuels. In the year to October 2021, just one fossil fuel company listed on the ASX, while 42 companies listed that target electrification minerals copper, nickel, lithium cobalt, graphite and rare earths. Over half the companies aim to mine in Western Australia, with another seven headquartered
Gas-fired robbery
The LNG industry portrays itself as essential to WA’s economy, a sentiment echoed by the WA Government. However, LNG industry contributes just 1% of the WA state budget and two thirds of Western Australia’s gas is effectively given away by the Western Australian and Australian Governments with almost no royalties or tax being paid. The
December 2021
Putting a Cap on Community
The Victorian Government’s policy of capping of local government rates revenue in Victoria is a regressive move on economic, social and democratic grounds. By arbitrarily tying the growth in total rates revenue in each local government area to price indexes, the state government restricts the ability of local governments to respond to the COVID-19 crisis
Six reasons to stop* floodplain harvesting in NSW
Licencing floodplain harvesting at lawful, sustainable volumes would be a major environmental, social and economic reform for the NSW Murray Darling Basin. There are also major implications for human health, community wellbeing, equity and the state budget. With so much at stake, public and government attention needs to be focused on the work of the
Quit Nukes
This report examines the policies of the largest Australian superannuation funds, highlighting their investments in companies involved in nuclear weapons development, production and maintenance (nuclear weapons companies).
November 2021
Grants with Ministerial Discretion
$3.9 billion has been spent by grants programs with ministerial discretion since 2013. $2.8 billion, or 71%, has been allocated to projects in Coalition seats. Funding has clearly favoured marginal seats at the expense of safe Labor seats and, in some cases, safe Coalition seats. In per capita terms, marginal Coalition seats have received $184
Identifying the problem
The Government’s proposed voter ID laws risk discouraging Australians from voting, in defiance of the country’s proud history of ensuring everyone can and does vote. There is no evidence that voter fraud is a problem or that voter ID would address it. The Government’s priority should be the 2.7 million Australians whose votes were not
Fingerboards sand mine expert economic evidence
The Australia Institute’s Research Director Rod Campbell gave expert economic evidence to Victoria’s Inquiry and Advisory Committee regarding the Fingerboards Mineral Sands Project. The project was recommended for rejection by the Committee. Rod was engaged by the community group opposing the development, Mine Free Glenaladale. Rod’s evidence showed that the economic assessment of the Fingerboards
Working From Home, or Living at Work?
2021 marks the thirteenth annual Go Home on Time Day (GHOTD), an initiative of the Centre for Future Work at the Australia Institute that shines a spotlight on overwork among Australians, including excessive overtime that is often unpaid. Last year’s report emphasised that 2020 had been extraordinary and difficult, and 2021 has brought little reprieve.