‘Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing, and medical care and necessary social services’. The Universal Declaration of Human Rights, Article 25
The Australia Institute’s submission to the State Government’s review of the draft Land Tax (Miscellaneous) Amendments Bill 2019 supports the idea of aggregating land portfolios for taxation purposes but raises concerns about the lost revenue that will result from deep cuts to the state’s top rate of land tax.
“The proposed changes to land tax aggregation are a common sense reform that should be supported on the grounds of fairness and transparency,” said Noah Schultz-Byard, SA Projects Manager at The Australia Institute.
Aggregating the land portfolios of property investors in South Australia, so that they pay tax on their investments as a whole, is a fair reform that will help to raise the revenue required to fund public services. Drastically reducing land tax rates in a way that primarily helps property investors with portfolios valued over $1 million does the opposite.
Monetary policy in Australia is no longer effective and the task of stimulating the economy should be taken up by a more active fiscal policy, shows new research by The Australia Institute.
The report, Monetary Policy is Spent: It’s Fiscal Policy or Bust by David Richardson senior research fellow at The Australia Institute, shows that in the current economic environment, monetary policy (reducing the official interest rate by the RBA) is ineffective, as interest rate reductions are increasingly nullified by the banks.
Monetary policy is recognised as being less effective as official interest rates approach zero. There are two main reasons. First, spending in Australia on investment is not very responsive to reductions in interest rates. Second, any reduction in official interest rates is mediated by the banks and other financial institutions. For practical reasons deposit rates cannot go below zero so, in order to maintain interest margins banks have to resist reductions in lending rates and that effectively nullifies any impact of reductions in official interest rates.
New research shows seven in ten Australians (72%) think that, if Australia is at risk of a recession, the Government should prioritise economic stimulus over the budget surplus.
The Australia Institute surveyed a nationally representative sample of 1,464 Australians about their economic priorities.
Neoliberalism has made Australia more fragile, fractious and open to foreign influence. We talk a lot about the rise of Chinese influence but there’s less discussion about the decline in our national self-confidence. Despite living in the world’s 14th largest economy with some of the lowest taxes in the developed world, neoliberalism has allowed successive governments to make us feel poor. Our misplaced sense of poverty leads us to make poor decisions.
New research from The Australia Institute has shown that more than 27,000 jobs in South Australia, Victoria and Tasmania would be put at risk if drilling for oil in the Great Australian Bight is allowed to go ahead and a catastrophic spill occurs.
Norwegian oil company Equinor is planning exploratory drilling for oil and gas in the Great Australian Bight beginning in late 2020. Modelling commissioned by the oil and gas lobby shows that South Australia is unlikely to receive any noticeable benefit from tax payments as a result of oil and gas production in the Great Australian Bight. The tourism, fishing and aquaculture industries on the SA coast already employ over 10,000 people and provide sustainable benefits through locally owned businesses. Across South Australia, Victoria and Tasmania, those same industries currently employ over 27,000 people. These jobs would be put at risk by oil development in the Bight.