Australia’s economy shows concerning signs, with recent productivity figures ranking among the worst in the developed world, according to a new analysis. Critics argue that increasing taxes on investment and entrepreneurship only exacerbate this malaise. The report highlights that under Prime Minister Anthony Albanese, the public sector has expanded, driving much measured growth and employment, rather than private enterprise. This model, where government spending fuels growth and public-sector employment surges, is presented as a sign of economic weakness and unsustainable for long-term national prosperity.
To foster a globally competitive, world-class economy, a comprehensive reform package is outlined, based on four core tax principles. These include permanently ending bracket creep by indexing income tax thresholds to inflation and implementing a simpler, flatter income tax scale. The plan advocates cutting the company tax rate to a uniform 20 per cent for all businesses to attract global capital. Lastly, making Australia a premier destination for company building involves zero capital gains tax for founders on their first $20 million of real gains, a 10 per cent tax on Australian-developed intellectual property income, and full expensing for productive business assets. This ambitious tax package is estimated to cost approximately $90 billion by 2029-30.
Funding these reforms relies on three key pillars. Firstly, lifting the Goods and Services Tax (GST) from 10 per cent to 15 per cent, broadening its base, and having the entire increase retained by the Commonwealth, projected to raise around $80 billion annually. Secondly, a 50 per cent reduction in National Disability Insurance Scheme (NDIS) spending, saving an estimated $25 billion yearly, citing concerns over its rapid expansion. The third proposes a 25 per cent reduction in public service costs, including wages and operating expenses, saving about $10 billion annually. This integrated approach aims to deliver a modest budget surplus of roughly $3 billion by 2029-30, offering a clear choice for an enterprise-driven economic future.
