Invest
Liberal economics has led Australia to a ‘dead end’: Paul Keating
Former Labor prime minister Paul Keating has warned of the threats of extreme inequality, while arguing that liberal economics are “going nowhere”.

Liberal economics has led Australia to a ‘dead end’: Paul Keating
Former Labor prime minister Paul Keating has warned of the threats of extreme inequality, while arguing that liberal economics are “going nowhere”.

Speaking at a book launch in Queensland last night, Mr Keating said there’s a significant inequality gap in Australia that can only be filled with policy.
“There's got to be a shift, and the shift will have to come from government," Fairfax Media reported Mr Keating saying.
"That sort of income distribution inequality becomes a curse, a cancer on a place. It's a horror story, unless there is a set of important changes."
He was launching the book Fair Share: Competing Claims and Australia’s Economic Future, co-authored by University of Queensland School of Political Science and International Studies researcher Professor Stephen Bell and former Department of the Prime Minister and Cabinet secretary Dr Michael Keating, AC.
Mr Keating argued that inequality had been exacerbated by the threat of artificial intelligence on jobs, and contended that the advent of 21st century technology simply saw wealth channelled back to a small group of the wealthy who did not funnel the cash back into the economy.
“These people are totally disconnected with the ordinary people of their country. What will happen is that the wealthy people will just pull away,” Mr Keating said, according to News Corp.
Looking back on his tenure as treasurer under the Bob Hawke government, Mr Keating said the welfare system protected the vulnerable while promoting wage growth.
However, he argued that liberal economics are no longer the best way to address 21st century challenges.
“Liberal economics is going nowhere,” Mr Keating said.
“It has now led us into a kind of dead end.”
Mr Keating, or at least his policies, made headlines this week after current Labor leader Bill Shorten announced plans to scrap cash refunds on excess dividend imputation credits.
The original dividend imputation system was brought in by Mr Keating to avoid double taxation on dividends from company profits. This system allowed shareholders to apply imputation credits to their tax bill to decrease overall tax liability.
However, the John Howard government later brought in an additional concession allowing individuals and superannuation funds to accrue a cash refund if their imputation credits were larger than the tax they owed.
The proposal sparked widespread backlash from superannuation fund managers, the SMSF sector, shareholder associations and the current Treasurer, Scott Morrison, who said, "Labor's latest tax hike is a $59 billion slug on more than 1 million pensioners, retirees and low income earners who will get taxed twice by Labor on what they earn from investing their hard earned savings.”
Mr Shorten disagreed, arguing that the Howard-era changes to the system meant Australia is now the only OECD country with a fully refundable dividend imputation credit system.
He said this concession has grown at a rapid rate to now cost the budget more than $5 billion a year.

Spending
Where are Aussies looking to spend their money in 2021?
Australians are increasing their spending intentions, with travel and entertainment set to be the big winners, a new report has revealed. ...Read more

Spending
Toyota returns $18m in JobKeeper payments
An unexpected surge in sales in 2020 has inspired car manufacturer Toyota to write an $18 million check to the government, returning the amount it received in JobKeeper subsidies and touting the move...Read more

Spending
Aussies spend up big during pre-Christmas sales
Consumers have taken advantage of new freedoms post-lockdown and pre-Christmas discounts as retail sales soared in November, official figures have revealed. ...Read more

Spending
Aussies unlikely to splash the cash following pandemic
Australian consumers are likely to cut back on discretionary items in 2021 with many re-evaluating their spending habits following the COVID-19 pandemic, new research has revealed. ...Read more

Spending
‘It’s back’: SA unveils second Great State Voucher
South Australian residences or those planning to travel to the state could save up to $150 as the government continues its support for the local tourism sector. ...Read more

Spending
Rise in health premiums at 20-year low, but there’s a catch
While the Australian government’s health insurance reforms have resulted in the lowest annual average premium change since 2001, according to experts consumers could still see a “whacking” prem...Read more

Spending
Young Aussies pressured to buy love this Christmas
Younger Australians are likely to spend more this Christmas as they equate expensive gifts with love, a researcher has found. ...Read more

Spending
Buying local this Christmas could raise over $1bn for small business
New research suggests that Australians could deliver an estimated $1.12 billion to the small-business sector this Christmas just by buying one more gift from their favourite local business. ...Read more

Spending
Where are Aussies looking to spend their money in 2021?
Australians are increasing their spending intentions, with travel and entertainment set to be the big winners, a new report has revealed. ...Read more

Spending
Toyota returns $18m in JobKeeper payments
An unexpected surge in sales in 2020 has inspired car manufacturer Toyota to write an $18 million check to the government, returning the amount it received in JobKeeper subsidies and touting the move...Read more

Spending
Aussies spend up big during pre-Christmas sales
Consumers have taken advantage of new freedoms post-lockdown and pre-Christmas discounts as retail sales soared in November, official figures have revealed. ...Read more

Spending
Aussies unlikely to splash the cash following pandemic
Australian consumers are likely to cut back on discretionary items in 2021 with many re-evaluating their spending habits following the COVID-19 pandemic, new research has revealed. ...Read more

Spending
‘It’s back’: SA unveils second Great State Voucher
South Australian residences or those planning to travel to the state could save up to $150 as the government continues its support for the local tourism sector. ...Read more

Spending
Rise in health premiums at 20-year low, but there’s a catch
While the Australian government’s health insurance reforms have resulted in the lowest annual average premium change since 2001, according to experts consumers could still see a “whacking” prem...Read more

Spending
Young Aussies pressured to buy love this Christmas
Younger Australians are likely to spend more this Christmas as they equate expensive gifts with love, a researcher has found. ...Read more

Spending
Buying local this Christmas could raise over $1bn for small business
New research suggests that Australians could deliver an estimated $1.12 billion to the small-business sector this Christmas just by buying one more gift from their favourite local business. ...Read more