Firstly this is miserly. The government should deliver tax relief which is, at least initially, more generous than the coalition's plan. A more miserly scheme violates their commitment to deliver tax cuts.
The second issue - paying off debt i.e.: a surplus.
Since the private sector generally wants, and should have, net financial assets there should always be government debt, in the form of bonds and exchange settlement balances. It should never all be paid off.
These generally have been close to free. The real rate of interest on these balances, taking into account inflation, has been close to zero. This year, with inflation at 7%, the real deficit/surplus is ~ $35B surplus, due to the change in the value of ~$1T in outstanding debt, after a cash deficit of ~$35B. It is the debt that delivers the surplus.
The surplus/deficit - change in debt - should be set to balance the economy. If the economy is in a boom, the surplus should be large. If the economy is in recession then there should be a large deficit.
The Government's balance should mirror the private sectors savings preferences, which are rarely zero.
Thirdly, there is no reform here.
Some taxes are too low - there should be no discount on capital gains, company tax should be 45%, and the top marginal rate should be 65%.
Some taxes are too high - e.g.: "depreciation" should be instant at 100%. Also there should be no effective marginal tax below minimum wage (the effect of tax and loss of benefits for dollars earned below minimum wage should be zero or less).
Fourthly rent assistance is mainly assistance for investors, who charge rents the market will bear, not renters. The government should be building and maintaining houses to cut the cost of accomodation, not subsidising the profits of private owners.
Dental is great, the out of pocket for existing services also needs to be addressed, along with the crisis in general practice.
There are big issues with this plan.
Firstly this is miserly. The government should deliver tax relief which is, at least initially, more generous than the coalition's plan. A more miserly scheme violates their commitment to deliver tax cuts.
The second issue - paying off debt i.e.: a surplus.
Since the private sector generally wants, and should have, net financial assets there should always be government debt, in the form of bonds and exchange settlement balances. It should never all be paid off.
These generally have been close to free. The real rate of interest on these balances, taking into account inflation, has been close to zero. This year, with inflation at 7%, the real deficit/surplus is ~ $35B surplus, due to the change in the value of ~$1T in outstanding debt, after a cash deficit of ~$35B. It is the debt that delivers the surplus.
The surplus/deficit - change in debt - should be set to balance the economy. If the economy is in a boom, the surplus should be large. If the economy is in recession then there should be a large deficit.
The Government's balance should mirror the private sectors savings preferences, which are rarely zero.
Thirdly, there is no reform here.
Some taxes are too low - there should be no discount on capital gains, company tax should be 45%, and the top marginal rate should be 65%.
Some taxes are too high - e.g.: "depreciation" should be instant at 100%. Also there should be no effective marginal tax below minimum wage (the effect of tax and loss of benefits for dollars earned below minimum wage should be zero or less).
Fourthly rent assistance is mainly assistance for investors, who charge rents the market will bear, not renters. The government should be building and maintaining houses to cut the cost of accomodation, not subsidising the profits of private owners.
Dental is great, the out of pocket for existing services also needs to be addressed, along with the crisis in general practice.