|
Welcome To 'Your Advantage' Newsletter #19
Let The Good Times Roll
The election date has now been set. The Great Debate has been and gone (without the worm), both parties have been showering the electorate with lavish gifts (why couldn't they do it earlier and spread their largesse?) We have been promised over $31 billion in more tax cuts (refer article "Tax Reform - Hidden Tax Cuts") but what can we say about our prosperity? Are we better or worse off?
These are good times, but it seems not necessarily for all.
Australia has never had it this good. The horizon of prosperity seems to stretch indefinitely into the distance. We've experienced some jolts and bumps along the way; but the economic shocks and deep uncertainties we were all accustomed to in the 1980s and '90s seem to have departed our shores - at least for the foreseeable future.
Phrases like full unemployment, stockmarket highs and the commodities boom roll off the tongue. The language of prosperity is now the second language of many Australians. It provides the Government of the day with choices. The more money the more choices.
But in the midst of so much prosperity, it is easy to overlook the many Australians who continue to confront a vastly different reality. This is a world where economic opportunity is limited or non-existent, and social isolation a fact of daily life. For all the talk and mutual congratulations over economic prosperity, we need to remind ourselves of the other Australia.
This other Australia includes some 3 million people who remain outside the workforce, many of whom want to work. It includes the one in seven Australian children who live in households where there's no wage earner. It includes the unacceptably large numbers of Australia's indigenous population for whom very low rates of workforce participation, poor health and low life expectancy remain endemic. For a nation which prides itself on equality and a fair go, these figures are out of sync with its core values.
Australia needs not just tax breaks but a strong focus on issues like infrastructure renewal, modernising federal-state relations and updating Australia's tax, red tape and workplace systems. They remain critical issues for business and the Australian community. In a highly competitive world, economic growth will slow and prosperity will stall without reform.
We're now starting to see better planning and policies on infrastructure reform.
One of the most glaring problems facing Australia, which is easily highlighted when one researches tax, infrastructure and red tape reform, is the quite dysfunctional state of our federation. Only through reform of our federal and state arrangements will we achieve a truly productive economy.
We should continue to argue strongly against any reversal of the workplace reforms which have delivered strong economic growth, higher real wages and record jobs growth over the last decade. By reversing these reforms, for example by abolishing individual workplace agreements, will result in a fall in productivity and increased unemployment. Our likely new Labor Government don't seem to understand this fundamental issue.
These areas remain the building blocks of reform and further progress on them will establish the foundation for continued economic prosperity.
Our Government needs to make Australia the best place to live, learn, work and do business.
We need new policy approaches to better align economic reform with social outcomes. The following costs to business could flow if we fail to address key issues. These include;
- Long term employment and entrenched disadvantage
- An ageing population that will open up huge and costly gaps in the labour force
- Lack of education and job skills among many young Australians
These problems constitute an unacceptable waste of individual talent. With such a strong economy, we talk a lot about Australia realising it s full potential. But we can't realise our collective potential unless each and every Australian has the "luck country" opportunity to realise theirs.
Lifelong learning and ongoing employment are the best ways of realising this potential. Education and employment are what will drive economic and social prosperity.
One of our greatest concerns today should be that our best and brightest young people are not entering the education profession and health system. And it's not surprising; education is not held in the high esteem by our society that it once was. The job carries a lot more stress today than in the past because of the need for teachers to provide pastoral care that was formerly provided at home; and teachers' remuneration structure provides no incentives for excellence.
The health system needs an overhaul as well. It's not politically popular but with an ageing population demands much greater focus. The same argument regarding teacher incentives and skill levels applies to our overworked nurses. These people are the backbone of the health system, are highly skilled, are asked to take on more responsibility and cover for the more highly revered doctors yet are paid at appallingly low levels. Again there is no incentive to enter this profession.
The cost of doing that for all Australian teachers and nurses alike, public and private, would be around $6 billion. This seems like a manageable amount, given the potential savings that might be made from rationalising education and health bureaucracies across Australia and the projected surplus of the Commonwealth Government.
We should consider such expenditure an investment rather than a cost. It's an investment into our future.
Economic prosperity should be the catalyst to unwind disadvantage - not perpetuate it.
Let's hope both parties (whoever is elected) can promise and deliver on real reform in the coming years.
Melbourne Office Additions
In August we welcomed Dale Sinnott and Catherine Baxter to our Melbourne office.
Dale has over 20 years experience in both larger and smaller public practice firms and has developed significant expertise in succession planning, tax structures, asset protection, taxation and financing arrangements.
Dale is a Director of Advantage One (Vic) and will head our Business, Tax and Advisory area in Melbourne.
We wish Dale and Catherine all the best.
Christmas Greetings
May we take this opportunity on behalf of our Team at Advantage One, to wish you and your family a festive Season full of great times in great company and have a prosperous New Year.
Note. This office will be closed from 22nd December 2007 and will reopen on Monday 7th January 2008.
This newsletter will provide you with a wide range of business related news and information, useful knowledge, profile some of our team members, introduce some of our clients and keep you informed of upcoming seminars and events.
We value your feedback so don't be backward in coming forward! Feel free to send suggestions, comments or your opinions to
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
.
Other new articles and information recently listed:
|
+ 61 8 8333 1944
