FIVE ISSUES FOR MALCOLM TURNBULL'S MINI-SUMMIT
TAX: Much of the debate surrounding the federal government's tax white paper has centred on the GST and whether its 10 per cent rate should be increased or its base broadened to take in current exemptions such as fresh food, healthcare and education. But there is also a strong argument for personal income tax cuts to prevent average earners finding themselves in higher tax brackets merely through wage inflation, otherwise known as bracket creep. Equally, Australia's corporate tax rate at 30 per cent - small business pays 28.5 per cent - is among the highest in the western world, a hit to the nation's international competitiveness. The tax system is also dogged by numerous inefficient imports, such as stamp duties.
RETIREMENT: The change of government leadership provides the opportunity for superannuation tax concessions to be brought back to the table as part of the tax white paper and a broader review of retirement policy. Under Tony Abbott, any discussion on super concessions was mothballed for this and the next term of government, despite the billions of dollars of forgone revenue each year. There are also calls for an immediate resumption of incremental increases to the compulsory super guarantee to counter the prospect of more than half of future retirees having to depend on either a full or part aged pension.
PRODUCTIVITY: It's a perennial question - how do we lift productivity? But it's become an increasing critical issue as the economy continues to limp along, below long-term average and unemployment remains stubbornly high, above six per cent. The Productivity Commission's draft report into the workplace relations framework concluded that while the system is not broken, it needs repair. It calls for Sunday penalty rates to be cut to Saturday levels in the hospitality and retailing sectors. However, workplace relations reform remains a flashpoint between government, business and unions.
CLIMATE CHANGE: Taking action on climate change remains another intense battleground. Some advocates were surprised by Turnbull's apparent support for Abbott's direct action policy, having previously staked his leadership in opposition on an emissions trading scheme. China, one of the world's biggest emitters, is pursuing a trading system. Some tax experts believe green taxes have to be part of the arsenal to tackle adverse changes to the environment.
BUDGET REPAIR: Crucial to the reform agenda will be getting the budget back to balance and reining in growing government debt. Under former treasurer Joe Hockey, a budget surplus is not forecast until 2019/20. New treasurer Scott Morrison has reverted to the mantra that Australia has a spending problem, rather than a revenue problem. But budget cuts could be restrained by still sluggish economic growth, with one major bank warning the Reserve Bank may have to step in with further interest rate cuts next year.
