ACOSS is calling for an ambitious economic reform agenda to improve living standards for those falling behind.
“The government must not waste this historic chance to put Australia on a fairer, more productive and more sustainable financial footing,” said ACOSS CEO Dr Cassandra Goldie AO.
In its submission to the Economic Reform Roundtable, ACOSS urges the government to address the core problem of rising economic inequality as a drag on productivity. Its submission calls for reform to the tax system to raise more revenue, reduce inequality and drive action to address climate change.
The submission also urges the government to reform the way it funds community services and abandon the failed competitive tendering arrangements that undermine service quality, as evident in childcare, aged care and employment services.
Tax reform proposals include halving the capital gains tax discount to curb speculative investment in property, removing opportunities for people with high incomes to avoid tax via private trusts, and fairer tax treatment of superannuation.
“For too long now, people with plenty have been showered with tax breaks that pull investment away from productive purposes and rob essential public services of the revenue they need,” said Dr Goldie.
ACOSS is pushing back against proposals to reduce reliance on our main progressive tax, income tax. The evidence is clear: Australia’s overall income tax take is below that of most wealthy nations, and switching from taxing income to a higher GST would undermine fairness while doing little or nothing to improve economic efficiency.
“The extra revenue we need to fund care and community services, schools, and an income support system that protects people from poverty must come from those with the most capacity to pay - not those doing it toughest,” said Dr Goldie.
ACOSS is also calling for reforms that improve employment opportunities, especially root and branch reform of a failing employment services system and a streamlining of income support.
“We must better prepare and train people for jobs and finally lift income support to levels that don’t trap people in poverty and destitution,” said Dr Goldie.
“Root and branch reform of employment services could provide a template for a different approach to commissioning which focuses on people, quality and outcomes, rather than throughput.”
ACOSS is also advocating policies to accelerate the clean energy transition, including phasing out fossil fuel subsidies and pursuing further energy efficiency and electrification.
Contact details:
Charlie Moore: 0452 606 171