The COVID-19 pandemic has shown that career politicians in the major parties have neither the will nor the capacity to serve the best interests of the nation.
Low and middle-income workers have been hardest hit, while corporations and wealthy shareholders have in many cases only increased their wealth. Governments have delivered primarily to vested interests – big business, union leaders, and the influential few – resulting in a weaker, less resilient economy.
What we aim for
Economic policy should guide our economy to be robust, efficient, and effective. It must maintain high standards of living, ensure a fair distribution of wealth, be a stable environment for business and manufacturing, foster worthwhile employment and excellent services, and do all this whilst conserving natural assets for future generations. Above all, economic levers must be transparently based on evidence.
We propose fundamental economic reforms, starting with an overhaul of the tax system. Our proposed tax reforms will more efficiently raise revenue that will be used to fund investments to transform Australia’s economy and pay down the debt that the government has taken on to manage the worst impacts of the pandemic.
Our plan will drive a fast transformation to very low greenhouse emissions by moving to an energy system characterised by renewable energy + storage and through the electrification of transportation, heating, and industrial processes. In doing this we must foster the scientists, innovators, and manufacturers who can build the business and employment opportunities that this transformation will offer.
Our economic reform package will deliver economic strength and stability in 3 key areas:
- A REFORMED TAX SYSTEM that is fairer and more effective;
- ECONOMIC STIMULUS that delivers strength by embracing the green transition and investing in the clean economy;
- SCIENCE AND INNOVATION investment that will deliver the knowledge and skills to create the jobs of the future
Summary elements of our economic reform package
|A more effective tax system|
|Make the first $37,000 of annual income tax-free |
– This will increase take-home pay for someone earning $37,000 a year by 11%
|Stamp out profit-shifting by global firms by adding a global profit allocation test in calculating corporate tax|
|Levy moderate taxes on the wealthiest 1%. |
– Tax those with wealth of $100 million+ and inheritances of $10 million+
|Reduce the capital gains tax discount to 25%|
|Phase out stamp duties and replace them with land tax|
|RE-ORIENT TO A LOW CARBON ECONOMY|
|Implement a $30/tonne tax on carbon |
– To provide energy policy certainty which will drive private investment in the grid, create jobs, and lower energy prices
– To be increased in line with Australia’s key trade partners
|Invest in electricity transmission upgrades to ensure reliable energy (guided by the Australian Energy Market Operator’s Integrated System Plan)|
|Underwrite support for lithium-battery and hydrogen energy industries|
|Levy a super profit tax on non-renewable resource projects|
For details on the components of our economic reform package:
|Re-evaluating our Economy for the 21st Century||See Platform Details|
|Updating the Tax System||See Platform Details|
|Economic Stimulus, Energy and Infrastructure||See Platform Details|
|Fostering Science and Innovation||See Platform Details|
|Our Economics Campaign Posts||Sign up to receive|
|The Policy Principles that Guide our Work||See Here|