Institute in the News

Help us shift the debate about tax in Australia

tax In a recent survey we asked whether respondents considered Australia to be a high tax country compared to other developed nations. 66 per cent said "yes". The OECD tells us that Australia is the 6th lowest taxing country.

But even though we think taxes are high, a majority would prefer better services over tax cuts. In the lead up to tomorrow's federal budget, check out the Institute's new infographic for more information.

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The Australia Institute's 'Budget in Reply'

The Treasurer has just done the books for Australia and many of you will be preparing to do your own as the end of the financial year approaches. Don't forget that all donations of $2 and above to The Australia Institute are tax-deductible. So if you've enjoyed receiving Between the Lines, please consider donating before June 30 or if you're in a position to Love your think tank even more, please consider becoming a monthly donor.

The missing $24 billion

budget If this budget had a cliché it would be 'missed opportunity'. If the Gillard Government collected the same rate of tax that the previous Liberal Government did they would have an extra $24 billion per year to spend on their priorities.

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Spreading the benefits of the boom only so far

mining Beyond the feel-good sound bite, how accurate is it to describe the budget as spreading the benefits of the boom? All of the $4 billion in subsidies to the mining industry were left untouched.

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Flick pass to Glenn Stevens

bank The government’s obsession with achieving a surplus of one per cent of GDP seems to be the new medium term goal around which spending decisions have to conform. The problem of short term macroeconomic stability now appears to be the job of the Reserve Bank and the Commonwealth is to avoid any responsibility. This division of responsibilities is new.

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A promise delayed is a promise denied

global Australia is one of the wealthiest countries in the world living in the wealthiest point in world history and in the middle of a mining boom.  Australia can afford to respond to those in need both within and beyond our borders, especially if it is so keen to pursue a greater international role through gaining a seat on the UN Security Council.

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What history teaches us about a boom

bust Reading this year’s budget one is reminded of the cargo cult mentality that was expressed by Treasury in the late years of the Fraser government. Substitute Japan for China and this could be 1979 or 1980.

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Thank you for helping us go viral!

Is Australia a high tax country? Thank you to all our Facebook and Twitter fans who contributed to the great success of our 'Is Australia a high tax country?' infographic. It has had more than 25,000 views and more than 1,700 shares. Not bad for our first attempt!

Over the coming months we hope to release a steady flow of infographics to promote our research and increase our social media presence.

You can follow us on Facebook here

You can follow us on Twitter here.

Recent Media

news

 As the miners look tough, the government looks weak, Crikey, 7 May

 Super changes penalise rich, ABC (PM), 3 May

NAB keeps a bit on the side, giving rivals excuse to avoid full rate cut, The Canberra Times, 3 May

Banks hoard rates cut despite huge pressure, The Daily Telegraph, 3 May

End the price gouging, The Financial Review, 3 May

National Australia Bank breaks Mexican stand-off on rates, The Daily Telegraph, 3 May

Forget emotion on banking decisions, The Sydney Morning Herald, 30 April

How we are blinded by the banks, The Sydney Morning Herald, 30 April

Put pressure on big banks, The Canberra Times, 28 April

Survey indicates unemployment benefits are not enough to live on, The Canberra Times, 24 April

Some university degrees are a waste of time, say experts, The Daily Telegraph, 24 April

 

Events

calendar Politics in the Pub Canberra

 

Indonesia and the live export trade - Lyn White, Animals Australia

Wednesday 23 May
6 - 7pm (doors open at 5.30pm)
The Lounge Bar, Level 3, The Uni Pub
17 London Circuit, Canberra

 

Australia's 20-year search for a coherent, workable and moral asylum policy - Father Frank Brennan AO

Wednesday 27 June
6 - 7pm (doors open at 5.30pm)
The Lounge Bar, Level 3, The Uni Pub
17 London Circuit, Canberra

Politics in the Pub is FREE

Big Four banks earn $12 million per day by delaying interest rate cut

banksEvery day that the Big Four banks delay passing on the Reserve Bank’s interest rate cut of half a per cent represents a transfer of around $12 million from home buyers with variable loans to the banks, according to The Australia Institute. An analysis of the ANZ’s new financial report shows that the bank has been crying wolf about cost pressures at the expense of its customers.

While the ANZ has been complaining that their cost of borrowing has been increasing, the Consolidated financial report and dividend announcement, Half year 31 March 2012 shows that their interest expenses are down two per cent. Senior Research Fellow David Richardson said that with banks not passing on RBA interest rate cuts at the same time as their cost of borrowing is falling, it is easy to see why the ANZ’s profits are on the rise.

“Where are the costs pressures the ANZ is facing if they can’t be found in their financial accounts? The banks have set a pattern, always complaining about cost pressures only to publish results that show the cost of funds has been low and falling,” said Mr Richardson.  “The banks are engaging in a phoney debate about the cost of borrowing. For the banks it is a very profitable debate. The Big Four banks have more than an 80 per cent market share. If they are not prepared to pass on interest rate cuts in full then perhaps it’s time to start discussing a banks super profits tax again,” concluded Mr Richardson.

To download the media release, click here

Pouring fuel on the fire

miningThe federal government gives just over $4 billion in direct subsidies to mining companies each year, mainly in the form of cheap fuel and tax breaks for building roads and railways, a new paper by The Australia Institute reveals. This is at a time when the mining industry is earning record profits.

To read the paper, click here

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