Like what you've read?

On Line Opinion is the only Australian site where you get all sides of the story. We don't
charge, but we need your support. Here�s how you can help.

  • Advertise

    We have a monthly audience of 70,000 and advertising packages from $200 a month.

  • Volunteer

    We always need commissioning editors and sub-editors.

  • Contribute

    Got something to say? Submit an essay.


 The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
On Line Opinion logo ON LINE OPINION - Australia's e-journal of social and political debate

Subscribe!
Subscribe





On Line Opinion is a not-for-profit publication and relies on the generosity of its sponsors, editors and contributors. If you would like to help, contact us.
___________

Syndicate
RSS/XML


RSS 2.0

John Lang-like Shorten is betraying the workers

By Gary Johns - posted Thursday, 29 December 2016


Thank goodness for the food workers up before dawn to replenish the shelves for Christmas. Thank goodness for the transport workers (Brisbane train drivers excepted) who toiled late into the day and night to take people to and from their celebrations. Thank goodness for the emergency workers ready when celebrations went wrong. Thank good­ness for the IT people who kept our electronic highways ticking. And millions more.

The time has come to praise the working person, especially business owners, the self-employed, the contract workers, those whose pay is uncertain.

The distinction in Australia between those on permanent incomes and all others is a vital one. Most workers have much less certainty about their source of income, level of income, or long­evity of contract than do those in the public sector or on benefits, especially age pensions. This is not to decry those people and their benefits - far from it.

Advertisement

Both sides of politics have attempted to make all incomes more certain through transfer payments, subsidies and benefits. But they have overshot the mark. Too much money has been spread around in this venture: debts are piling up.

The Howard government poured money into family benefits, the Rudd government pumped Australia's public debt to 10 per cent of gross domestic product, and the Coalition has failed to bring it under control; it now stands at 37 per cent of GDP. Australia's credit rating affects borrowing costs and government bond yields, and the private banking sector. Workers, on uncertain incomes, will pay for it.

There might be some hyperbole on the part of Treasurer Scott Morrison in claiming that failure by the Senate to pass the so-called zombie bills will cause Australia to lose its triple-A rating. But in the absence of compensating measures, it is highly likely.

Australia last lost its AAA credit rating in 1986, some months after Paul Keating reminded us we were headed for banana republic status. It was restored in 2003, following years of surplus budgets and sumptuous mining taxes.

The zombie measures - cuts in access to family tax benefits, outlawing double-dipping maternity leave schemes, freezing Medicare benefits and changing the safety net for the Pharmaceutical Benefits Scheme - are modest indeed, a mere down payment ahead of greater measures.

Down the track the big items must come into play - tougher assets tests on the age pension, and lifting the age for access to the age pension and superannuation retirement benefits. Workers will have to work on. This is why they need praise now. There is no source of wealth other than the efforts of these people.

Advertisement

According to the Grattan Institute, about half of budget debt is a result of increases over the past decade in net transfers to households aged over 65.

Spending per older household on health and the age pension has grown faster than the economy, and younger households will "pay an additional $10,000 in tax over their lives to pay back the principal and interest".

This is Malcolm Turnbull's challenge. To press into the electorate's mind that workers carry the weight of those on pensions and benefits, and that Labor stands in the way of budget repair.

  1. Pages:
  2. Page 1
  3. 2
  4. All

This article was first published in The Australian.



Discuss in our Forums

See what other readers are saying about this article!

Click here to read & post comments.

13 posts so far.

Share this:
reddit this reddit thisbookmark with del.icio.us Del.icio.usdigg thisseed newsvineSeed NewsvineStumbleUpon StumbleUponsubmit to propellerkwoff it

About the Author

Gary Johns is a former federal member of Parliament and served as a minister in the Keating Government. Since December 2017 he has been the commissioner of the Australian Charities and Not-for-profits Commission.

Other articles by this Author

All articles by Gary Johns

Creative Commons LicenseThis work is licensed under a Creative Commons License.

Photo of Gary Johns
Article Tools
Comment 13 comments
Print Printable version
Subscribe Subscribe
Email Email a friend
Advertisement

About Us Search Discuss Feedback Legals Privacy