To realise Labor's founding ideals, we need reciprocity and economic reform

The Howard Government has knocked incentive in Australia as flat as a tack. It is punishing work, not rewarding it.

A something-for-something society

We need to create a something-for-something society, where the more people give the more they gain. And the more they gain, the more they give. This is reciprocity in action. If we don't look after each other as neighbours, as communities, as citizens, then what hope is there in a fast-changing and insecure world?

Politicians know how to build roads and hospitals, they know how to increase penalties and put police on the beat, but they have little to say about social relationships.

We need a new role for government, one that re-establishes the principle of reciprocity in society, one that brings people closer together in support of common interests and common causes. This is the role of government as a facilitator or enabler, offering incentives and rewards for people who do the right thing.

This is why reciprocity is so important: one rule for all Australians, whether rich or poor.

The right-thing revolution

What does this mean in practice? It means making work pay. It means tax relief for working families and reducing effective marginal tax rates. It also means a strong minimum wage and decent labour-market laws.

It means rewarding results in the education system. This is the goal of Labor's higher education policy: 20,000 extra university places, 20,000 extra TAFE places, without the need for upfront fees and higher debt. We also need to reward excellence in the teaching profession. Quality teaching is a passport out of poverty. It must be available to every poor student.

Australia needs an early childhood education program:

• A national campaign to encourage more parents to read to their children
• Retired teachers and community leaders working with parents to lift literacy and numeracy skills, making them more effective educators in the home; plus
• Increasing the number of qualified teachers in childcare centres and improving the availability of preschool education.

There are many more examples of the right-thing revolution but the policy I want to finish with is about our economic future.

The household-savings rate has fallen to an all-time low (minus one point two) while household debt has increased from $290 billion in 1996 to more than $670 billion today. Australia's economic growth rate has been placed on the credit card.

New policies are needed to lift household savings and break the cycle of deficit and debt. This is why Labor has announced a superannuation tax cut, to help working Australians grow their retirement savings and security.