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Understanding the Turnbull government's winning strategy

By Chris Lewis - posted Tuesday, 12 July 2016


As argued by David Leyonhjelm, the NSW Liberal Democrat Senator, "nobody wants to see anyone starving or children missing out on health care or an education through no fault of their own". Therefore, he urges the greater use of assets and income testing with regard to child care assistance, FTB assistance, student loans, and pensioners.

Third, negotiation for crucial legislation to gain Senate support, which does not receive bipartisan support from Labor, will come down to the power of the Turnbull government's policy ideas and ability to persuade.

As the Coalition achieved under Abbott and Turnbull, as also evident under previous Labor governments from 2009-10 through savings made to Family Tax Benefits (FTB) indexation, savings can be achieved to encourage Australia to live within its means. This included decreasing the income of the primary income earner from $150,000 to $100,000 to qualify for FTB-B, with such payments ending once the youngest child turns 13 (although single parents and grandparents with children over the age of 13 will receive an FTB-B payment of $1,000 a year); phasing out Labor's Schoolkids Bonus payments during 2016; increased the qualifying age for the aged pension from 65 to 67; and offsetting an increase in assets that can be owned to qualify for the full pension as of 2017 by doubling the taper rate which reduced the pension from $1.50 to $3 for every $1,000 of assessable assets above the asset-free area.

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Good government must be astute when devising sensible policy proposals. For example, while the Abbott government in 2014 was right to assist the 200,000 Australians aged over 50 now receiving unemployment benefits, its failed proposal to make the younger unemployed apply for 40 jobs a month to qualify for benefits was ridiculous with the Business Council of Australia also indicating that people should apply for jobs where they have a greater chance of winning.

At the end of the day, many Australians look to the Coalition for policy leadership. At the 2016 federal election, with the Coalition winning around 42 per cent of the primary vote, Labor received just 35 per cent, its second lowest level ever (33.4 per cent in 2013).

But the Coalition's ability to persuade voters will be limited if it does not continue to reflect a policy mix that appeals to people of all walks of life including liberals, conservatives, and people like myself looking for a more viable economic-social policy mix. With many concerned about housing affordability and employment opportunities (and the environment), the need for a pragmatic but purposeful government role comes at a time when the non-major party primary vote has reached a post-1945 high of near 23 per cent.

In contrast to Andrew Bolt, I understand the Turnbull government's past policy approach, but I also hope for a better economic-social policy mix in these uncertain economic times.

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About the Author

Chris Lewis, who completed a First Class Honours degree and PhD (Commonwealth scholarship) at Monash University, has an interest in all economic, social and environmental issues, but believes that the struggle for the ‘right’ policy mix remains an elusive goal in such a complex and competitive world.

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