A social democratic response to the Great Depression of 2008

There would be more revenue collected under this scheme as projects that would have not be viable under the previous royalty regimes could proceed and projects that generate super profits would generate additional revenue.

This additional revenue could be used only for national or state significant infrastructure projects. Thus the investment windfall would be used on transport, energy, telecommunications, water or education infrastructure to provide increased productivity across all economic sectors.

Greater access to sovereign bonds

As we see state and local governments struggling in the current environment to raise funds from financial institutions we need to rethink how we raise these funds. Financial institutions used to issue bonds with prohibitive transaction costs for all but institutional investors. I propose that Australia leads the way in bringing the finance sector into the 21st century by allowing retail investors access to sovereign bonds without the prohibitive transaction costs.

Just as mortgage brokers provided necessary competition into the house lender sector so could allowing licensed financial advisers to directly sell sovereign bonds in smaller parcels to retail investors. Competition would ensure that commissions would not be a prohibitive barrier to retail investors.

As we see consumer sentiment change and savings increase what would be better than those savings be directed to funding the government stimulus packages.

Housing policy

Housing affordability in Australia has been steadily declining. The taxation system is a major contributor towards this. The negative gearing arrangement is creating an asset bubble that is creating a divided society. Investors and speculators are competing in many cases with first home owners and the current taxation system is ensuring that competition is not on a level playing field.

The solution I propose is to change the taxation arrangements for future investments. I propose that the current negative gearing arrangements would only be available to new investments that result in  new housing stock thus removing new investors from competing with the average family trying to secure their first home.

These comprehensive reforms are needed to create a viable and fair Australia.

The test now is will national interest be able to defeat vested interests.