The politics of 'empowerment'

1. Bracket uplift for the 30 per cent tax-rate; and

2. Earned income tax credits (see discussion papers: Andrew Leigh on optimal design (pdf file 426KB), and Peter Dawkins on extending the wage-tax trade-off (pdf file 297KB); and/or

3. Extension of the Lower Income Tax Offset (LITO); combined with

4. Individual employment bargaining, with the following safeguards:

• union access to workplaces on reasonable request;
• minimum levels of information on individual employee performance and overall company profitability;
• the right to elect representation in the bargaining process; and
• collective bargaining available in medium and large firms for “like for like” employees if a majority of employees elect; combined with -

5. Fair Pay Commission considering minimum wage levels in conjunction with income support and tax policy; combined with

6. Changing the taper-rate of social-benefits; combined with

7. Wider educational investment for the less skilled and underemployed people, funded by HECS style schemes.

This set of policies would upset the “dominant narrative” staking a claim to economic prosperity and opportunity.

It would promote productivity among the least productive Australians, at least measured by income. It maintains a link with workplace performance, without this link negatively compromising after-tax wage results at the low-end. It also assists many to shift from their current workforce standing to better opportunities.

Which leader will grasp this “empowerment” mantle and run with it? That leader will be tapping into the Australian value of social mobility. That leader will have a long-term narrative for our nation. That leader will have a good chance at the next election.