Is this a real Labor Budget?

Harsh 'Work for the Dole' provisions could actually spur public sympathy for the reform of Newstart. The best could be made of a bad situation, by tying these provisions to significant across-the-board increases in the Newstart pension, (perhaps $50 a week), and significantly greater increases for those directly involved in the program. Its severity could also be diluted with time; with more 'carrots' and less 'sticks.' The Greens should demand such a compromise through the negotiation process.

It is also crucial for Labor to drop its commitment to restrain proportionate growth in public expenditure 'no matter what.' An NDIS must deliver significant NEW funds into the system. And in addition to existing shortfalls for services, welfare and infrastructure, sooner or later Labor must address in a progressive manner the pressures of an ageing population and a growing population.

Tens of billions are needed for aged care, health, medium-high density social housing and transport infrastructure. This expansion cannot go on forever, but a reasonable goal for the time being would be to increase the tax base progressively by 1.5% of the GDP per term. Specifically, Labor should consider the restructure of income tax or dividend imputation, a wealth tax, or a National Disability Insurance Scheme - or a mix of these options. Moreover, following a broader restructure and indexation of the bottom two income tax brackets, Labor could also let bracket creep 'do some of the work.'

Only by meaningfully grappling with these issues can Labor overcome the impression of indecisiveness; reclaiming its status as a real electoral contender, as a government of vision, social conscience and active social and economic reform.