Are we being lied to about what our nation can actually afford? |
Did you notice what was different, really different, about the budget this year? This budget, and the debate around it, was not just about looming deficits, the need for belt-tightening and why now is the right time for company tax cuts.
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For the first time I can remember, this budget was about what kind of Australia we want and how to pay for it.
The lead up to the budget was dominated by a huge public discussion around calls for a 25 per cent gas export tax. And while there was no gas tax in the budget, questions about why the government didn't implement this no-brainer revenue-raising measure have dogged the Prime Minister and the Treasurer in post-budget interviews.
What was in the budget was a genuine attempt to address the housing crisis through reforms to expensive and unfair tax concessions for capital gains and negative gearing. Not only will this slow growth of house prices, but it will raise revenue for the government.
This is different. Usually, budget coverage is all about what should be cut. This year, we talked about how to raise revenue. If you're not a budget tragic, this may not seem like that big a deal, but it is a big shift. There was far less squabbling over what had to be cut (I'll come back to the NDIS, don't worry), and far more discussion about how more money can be raised. And the focus has been on raising revenue in equitable ways, unlike regressive tax reforms which would hit the poorest the hardest, such as increasing the GST.
This shift is important because Australia has a revenue problem. We are a low-tax country that does not raise enough cash for the services we want, need and deserve.
Australia may not feel like a low-tax country if you work for a living, but that's because workers do pay a lot of tax here.
By contrast, Australia has no tax on pollution. Australia barely taxes wealth (though removing the 50 per cent capital gains tax discount is a good start). And state and federal........