Economy set to dominate post-virus debate
Australia is facing a once-in-generation period of economic reform with a fierce policy battle set to emerge from the ashes of the coronavirus pandemic.
The coalition government has flagged tax and industrial relations reform, along with an aggressive deregulation agenda to guide post-pandemic economic recovery.
Labor leader Anthony Albanese said his focus was on ways to increase wages and job security, which has come into sharp focus as unemployment soars.
"What I want is an economy that works for people, not people working for an economy," he told Sky News on Thursday.
Consensus has evaporated in recent days, with Labor and unions angry with the government slashing notice periods for worker votes on changes to pay and conditions.
The coalition has also revived plans to pass its "ensuring integrity" legislation which makes it easier to ban officials and deregister unions.
Employer groups are pushing for company tax cuts and a workplace law overhaul, while the Australian Council of Trade Unions is calling for more employee rights.
Prime Minister Scott Morrison has repeatedly called for businesses and unions to work together to drive change across the economy.
Mr Albanese is hopeful cooperation between worker represenatives, business and the government can continue when the crisis eases.
"Business and unions do have common interests," he said.
Tax reform guru Ken Henry has called for a new levy on business cash flow to replace the GST, payroll tax and state insurance duties.
He also wants stamp duties and fuel excise replaced with land tax and road user charges.
"Today's tax systems are not capable of supporting a respectable medium-term fiscal strategy, nor of supporting the acceleration in economic growth that will be required to ensure a sustained recovery," Dr Henry told the Australian Financial Review.
The ex-Treasury secretary would also exempt all scholarships, pensions, allowances and other government transfer payments from tax.
Former Liberal treasurer Peter Costello believes the government should bring income tax cuts forward, a move Labor has pushed for.
"The high-tax cheer squad will use this as an opportunity to increase taxes all over the place," he told The Australian.
He also called for red tape to be reduced around responsibile lending laws which require banks to judge the suitability of borrowers.
The policy contest will continue in the lead up to the budget in October, when the government is expected to reveal its reform agenda.
