The Howard government has given little real incentive to work

Just two and a half years ago, Australians were promised improved financial incentives to work harder as part of the New Tax System reforms.

A quick flick through the lengthy policy document reveals that a key principle of the New Tax System was 'incentive' with 'greater reward for effort'.

Indeed, the entire first chapter was devoted to the problem of the tax and social security system conspiring to destroy incentives to work, and how the ANTS reforms would fix it.

But as Labor predicted, the package has become a burden on average Australians - and not just because of the 10 per cent GST on nearly everything they buy.

A recent paper by the National Centre for Social and Economic Modelling concluded that the ANTS reforms made little difference to financial incentives.

Indeed, close analysis of figures in the paper reveals that in 2002 the number of earners losing more than 60 cents in each additional dollar earned (due to tax and the clawback of benefits) was approaching double the number before tax reform!

Confronted in Parliament with the burden being placed on low-and-middle income Australians who attempt to earn extra, the Treasurer brushed it aside with scorn.

Peter Costello's response was a throw back to the Marie Antoinette quote: "let them eat cake". He said the question was based on a "falsity" and "wasn't a serious policy question at all".

The fact that the next Leader of the Liberal Party is in denial about the problem should make average Australians sceptical that Mr Abbott is genuine about fixing it.

The truth is, Tony Abbott doesn't know what corner he is boxing from - he is all talk and no pants.

This Government is taxing Australians more than any other in our history, it has allowed a massive decline in bulk-billing, forced families to pay more for medicines, and made it more difficult for their kids to get a quality education.

As we watch the HIH inquiry unfold and see the way in which corporate high-flyers have lived high on the hog unchecked, it is hard to excuse the Government's treatment of ordinary hard-working Australians.