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5-point plan to get the economy back on track

  • May 18 2020
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5-point plan to get the economy back on track

By Cameron Micallef
May 18 2020

The Australian Taxpayer Alliance has released a five-point plan to help get the Australian economy back on track following the COVID-19 pandemic.

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5-point plan to get the economy back on track

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  • May 18 2020
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The Australian Taxpayer Alliance has released a five-point plan to help get the Australian economy back on track following the COVID-19 pandemic.

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The paper outlines how the Australian economy has an opportunity to be reconstructed as the country falls into its first recession in nearly three decades.

“Policymakers can use this crisis to pinpoint weaknesses in Australia’s tax and regulatory systems and then use the current momentum to push real structural reforms,” said ATA policy director Emilie Dye.

The report highlights the importance of creating economic growth over taxing Australians out of the COVID-19 debt. 

“Australian politicians have a choice: they can tax more, regulate more and otherwise expand their powers, or they can use this disaster to restructure our tax and regulatory codes and put more power in the hands of the people.

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“COVID-19 has disrupted people’s lives, the economy and government coffers in ways no one could have predicted. Policymakers have had to institute dramatic changes. But as we ease back into normalcy, we cannot become compliant,” said Ms Dye. 

“An overly authoritarian government and a dangerous debt still threaten the Australian public. Australian politicians need to make smart reforms now.”

Deregulation: Use cuts to red tape as a fiscal stimulus to jump-start the economy post-COVID-19

The research paper highlights the importance of getting the economy moving by cutting red tape that is a cost for both businesses and taxpayers.

“Regulation is the kryptonite of innovation. Businesses need all the strength they can get to recover from this crisis, and our government agencies need to focus all their resources on recovery,” Ms Dye explained.

“COVID-19 has revealed the regulations that Australia doesn’t need, like restrictions on operating hours and redundant licences that do not make consumers any safer. The state and territory governments would be stepping backwards if they were to reinstate these archaic restrictions.”

Decentralisation of power: Shrink the government back to its original size and put more power into the hands of the Australian people

Australians have lost many of their fundamental rights during this crisis, and the state police departments have collected millions in fees for their governments through on the spot fines.

“We need to return to being a society that treats people as innocent until proven guilty. Australians deserve to have their voices heard both in Parliament and in the courtroom,” Ms Dye continued.

Taxation: Implement structural tax reform and get rid of government waste caused by inefficient and costly taxes

The report found that the Australian economy is being held back by taxes that are inefficient, which is putting a handbrake on the economy as a whole. 

“Over the years, Australia has collected a cocktail of taxes, some of which are toxic to the economy. By cutting wasteful and inefficient taxes like the stamp duty, payroll tax and the corporate tax, the government could spur economic growth and increase the tax take in other areas.”

“To contain the debt, the government doesn’t need to tax more, it needs to tax smarter,” Ms Dye argued. 

Domestic economy: Promote local manufacturing by making Australia globally competitive, not by instituting protectionism policies

To get the 823,000 unemployed Australians back into work, the Tax Alliance argues that it is important for Australia to restart its manufacturing industry.

“COVID-19 uncovered the corpse of our manufacturing industry. Australia faced painful supply chain shortages that showed our nation’s overdependence on China.” 

“Instead of arguing for policies that would supposedly ‘protect’ Australian industry from foreign competition, we should make Australia globally competitive. Australian businesses don’t have a fighting chance against foreign corporations, because we have handicapped ourselves with high taxes, unnecessary regulations and inefficient bureaucracies,” Ms Dye continued. 

Superannuation: Keep the increased superannuation flexibility and give Australians more power over their retirement savings

One of the government’s controversial policies of allowing members access to their superannuation early should be kept, according to the Taxation Alliance.

“We can walk away from COVID-19 with a healthier, more resilient Australia, or the government can rigidly attempt to manage the lives and finances of every Australian. It’s time we gave Australians power over, and access to, their own superannuation funds.”

“Only individual Australians know best how to save and spend their own hard-earned money. Scott Morrison has temporarily allowed Australians to access up to $10,000 of their super tax-free. Let’s make that change permanent,” Ms Dye concluded.

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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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