Tax cuts and increased spending don't add up

By far the most important equity measure would be the generous expansion of Australia’s social wage; through an increase in public expenditure for welfare, services and infrastructure across the board.

ALP members and others in a position to make a difference must speak up now. They must ensure Labor’s tax policies embrace distributive justice and social wage expansion without needlessly delivering windfalls to those who have already benefitted from over a decade of conservative rule.

The Left, in particular, needs to move now to extract a meaningful compromise on these issues. The above agenda, while it may seem radical by Australian standards, would still leave Australia well behind Scandinavia and Western Europe in its provisions for a social wage, vital infrastructure and industry incentives.

It is by no means likely that the entire of the above agenda will pass Labor’s 2007 national conference. However, the arguments for reform need to be made strongly in the hope that some compromise will arise that, while imperfect, serves those most in need.