Tag Archives: Joe Hockey

Plutocrats and Pitchforks

January 14, 2015
Written by: John Kelly
43 Replies

The word ‘revolution’ has throughout history been synonymous with the cry for equality and social change. The French Revolution of 1789, the Russian Revolution of 1917, the Cuban Revolution of 1959 to name a few, all began because the divide between the haves and the have nots became intolerable. In the examples above, social inequality was at historically high levels and getting worse by the day. Something had to happen and it did, much of it violent and bloody.

Revolutions were generally born of peasant unrest, dissatisfaction, a sense of betrayal by once revered heroes who were seduced by their own power and their accumulation of vast wealth. When that peasant dissatisfaction reached a tipping point, revolution became the only recourse.

Today the wealthiest 1% in our society enjoy a lifestyle that much of the 99% could not even imagine. Furthermore, the gap continues to widen such that the line between middle and lower class workers is now blurred, while the gap between middle and upper income levels grows wider and easier to see.

While any high functioning capitalist economy will always have inequality to some degree, the divide as it exists today is so geared toward greater wealth for the fewer that the middle class is in danger of disappearing altogether. The message for all those living in their gated compounds and ivory towers is, it cannot last.

Statistics are not needed to reinforce these claims. They simply confirm what the 99% already know. But, for the record, in 1980 in the USA, the top 1% controlled about 8% of the national income while the bottom 50% shared about 18%. Today, the top 1% share 20% of the national income while the bottom 50% share just 12%.

In Australia, similar comparisons are difficult to find but in measuring wealth by quintiles, the ABS found that in 2011 the top 20% of households owned 62% of the wealth while the bottom 20% held less than 1%. In fact the top 20% held more wealth than the rest combined. The conclusion was that wealth inequality was rising fast.

Free market capitalism in its present form is no longer a recipe for a sustained, prosperous, happy, healthy society. Today, capitalism is synonymous with inequality, unfairness and discrimination. With today’s capitalism we are drifting toward feudalism.

Inequality has grown so dramatically over the past thirty years that our once great egalitarian Australia of the 1960s and ’70s has all but disappeared. And to quote Joseph Stiglitz, “one of the major culprits has been trickle-down economics—the idea that the government can just step back and if the rich get richer and use their talents and resources to create jobs, everyone will benefit. It just doesn’t work; the historical data now proves that.”

If ever world leaders had an opportunity to revolutionise capitalism it was in the aftermath of the Global Financial Crisis (GFC). Just six years on from that incredible opportunity, we can see they have failed and have done so, spectacularly.

Bank bailouts without conditions will be a dark legacy for Barack Obama in an otherwise reasonable presidency and now the opportunity has all but passed. The US stock market has not just recovered but surpassed pre 2008 lows. The rich are richer and the poor are poorer in far greater numbers than before. For the 1%, the plutocrats, it’s business as usual.

The Reagan trickle-down effect is back with a vengeance and is now the hallmark of the present Australian government despite a plethora of information, data, and recent history to demonstrate its failure. They still expect business to lead a national recovery with investment in goods and services. What they don’t get, is that an underutilised workforce cannot afford it. Business knows this. That is why they will not commit.

The government cannot see that a vibrant, active, well-educated workforce is an essential component of a strong, robust economy; a component that creates demand that results in stronger growth, stronger investment and stronger taxes.

Blinded by the advice from bankers, investment houses and those whose fortunes are derived from manipulating stock markets and overvaluing mortgage stocks, Tony Abbott and Joe Hockey are no more than a mouthpiece for the 1%; the plutocrats. They are victims of their own self-serving ideology. While they are in power nothing will change, no improvement for the 99% will ever eventuate.

Any realistic observer can see that this trend is unsustainable and its future unpredictable. While the plutocrats continue to build their wealth, billionaire Nick Hanauer thinks they might inherit pitchforks.

While the 1% enjoy their wealth, blind to the signs of desperation around them, a single act of defiance by someone desperate and destitute enough could mobilise thousands in support and roll across the country like a tidal wave. The 1% could be caught like the frog in the saucepan unaware the water has reached boiling point. But by then, it will be too late.

I don’t think anyone in government, least of all Scott Morrison, anticipated riots leading to murder and self-immolation when he embarked upon his ruthless policy of deprivation detention on Manus Island. That crept up without warning. And now, I don’t think either he or his party foresee all the possible outcomes if they embark upon a policy of reducing welfare at a time of fiscal contraction.

He may not even care but he could well be responsible for creating a new underclass that has no respect for law and order. He could well extend existing poverty further into the realm of the middle class, bringing welfare agencies to their knees trying to cope. This is where that one defiant act could likely emerge.

History is littered with such circumstances and the consequences of doing nothing. The 1% won’t see it coming, but governments should. And they should do something to stop it, or they too will feel the pitchforks. They can plead ignorance but that won’t save them.

They can say their hands were tied but their complicity will be all too obvious. The plutocrats will never change voluntarily. The government is running out of time to do it for them.

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As Investment Advisers, The Liberals Make Alan Bond Look Good!

January 7, 2015
Written by: Rossleigh
47 Replies

Late last year, I wrote about the Liberals’ criticism of the ANU’s decision to divest itself of shares in fossil fuel companies. As I pointed out, while this was considered “outrageous” by various senior Liberals, the shares being sold had actually been losing value, and apart from anything ethical considerations, it was possibly sound financial sense to sell.

When I’m wrong, I’m happy to admit it. Unfortunately, for those Liberals who I intend to mock mercilessly, this isn’t one of those times. Santos shares have continued to dive and I just noticed this little gem:

Santos shares “worthless” say Credit Suisse.

Now, just last October, Christopher Pyne labelled the ANU’s decision to sell “bizarre” and Jamie Briggs says that he wrote to the Vice-Chancellor demanding an explanation. Well, I can give Mr Briggs an explanation – the shares are now almost half what they were when they were sold.

Perhaps, that should be one of the Labor Party’s questions in Parliament. Are the Government ministers still critical of the move, or do they now concede that sometimes people in universities might actually know something, even if Andrew Bolt is better placed to lecture us all on climate change. Yes, I know that Bronwyn Bishop would rule it out of order, but it’d be fun to watch.

Just like it was fun to listen to Jamie Briggs tell an ABC interviewer this morning that her question was out of line because, of course Tony Abbott was concerned about the SA bushfires, why he’d commented in response to a question just yesterday, and Mr Briggs believed that he had spoken to the Premier offering whatever help they needed. The Premier’s Office seemed unaware of any such call – perhaps Mr Abbott should have told them who he was.

Here we have the question and response:

Question: And just finally, on the SA bushfires, will there be any assistance package for the people affected?

Abbott:

The standard national disaster relief and recovery arrangements are already in place. We will shortly have a little bit more to say on the Centrelink payments which are often made in circumstances like these. I have been talking regularly to the relevant minister, Michael Keenan, to Minister Jamie Briggs who has the electorate which has been most impacted by these fires. Obviously, Australian summers are prone to fire and flood. It is tragic that we’ve seen, yet again, the ferocity of Mother Nature, but the thing about Australians is that the worst in nature tends to bring out the best in us and that’s what we always see when our emergency services rush to help people in trouble and when communities rally around those people who have lost a very great deal.

Mm, can’t see why people who’ve lost their homes would feel that Tony’s response lacked empathy!

P.S. Update

THE Adelaide Hills bushfire is finally under control, with Prime Minister Tony Abbott pledging about $4 million in assistance for fire-affected South Australians.

The number of houses destroyed of badly damaged in the fire has also been downgraded from 32 to 27.

Mr Abbott toured some of the 12,500ha fireground this morning with Premier Jay Weatherill, before making an announcement on disaster recovery payments.

The Federal Government will pay $1000 per adult and $400 per child to those affected by the fire, who will have six months to apply for the funding.

There you go, $4million. That’s nearly as much as he gave the Iraqis.

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Believe Me, I Know The Difference Between Satire And Reality!

December 30, 2014
Written by: Rossleigh
100 Replies

A number of people commented on yesterday’s This is How Tony Got Elected expressing the idea that the pictures were from a satiric site “Why I’m Voting Liberal” and that I’d mistaken a satiric post for real actual Liberal voters.

Now I am aware that people have sometimes taken made-up quotes from my writing as genuine, even when they’ve clearly been satiric. Even when I’ve used clearly fictional names and characters like “Hoe Jockey”, “Tiny Habit”, “Arnie (I’m not sexist) Corperson”, “The Speaker: Dolores Umbridge” or “Christopher Pyne”. Even when their behaviour has been so outrageous, so unbelievable that surely, surely nobody could confuse them with the actual Liberal Party. (Although there have been a couple of times that the Libs have adopted my satire as their actual policy a few days later – makes me wonder whether all those jobs Abbott created for monitoring social media are actually just searching for new policy ideas.)

Anyway, I always try to be careful not confuse what Liberals are actually doing and saying with attempts to make them look ridiculous through exaggeration. Admittedly, Abbott, Brandis, Pyne and others make this an almost impossible task sometimes. But, in this case, the photos weren’t taken from the site that wasn’t serious. I went back and checked the site’s description. It asked for people under 30 to post reasons that they were voting Liberal. I copied its description to show to someone who assured me that the site wasn’t serious:

“Under 30?
Voting Liberal on September 7th?
Tell the country why!

We’re young people who care about our future and opportunities. We care about the economy. We care about what jobs there will be for us in the future. We care about good, sustainable and forward-thinking government. We want real change.

I’m Voting Liberal is a campaign for young Australians.

Get involved! Get together with your friends and send photos to:
imvotingliberal@gmail.com or message them to this page.”

And I found the other site – the satiric one. Yes, it is hard to tell what’s satire and what’s not these days. I mean, how do you caricature Andrew Bolt or Alan Jones? And yes, if that description hadn’t been written before the election, one might easily think that it, too, was purely a send-up of the Liberal’s Real Solutions document.

So yesterday I added the following P.S. to the article.

P.S. Just to clear up some confustion, this is a genuine site and not the parody site.

Update at 8pm. The site seems to have disappeared in the last couple of hours and that link no longer works.

If you’ve just clicked on the link. Yep, that’s right. It no longer exists.

Given that there seems to have been no updates to the pictures since the election, it does seem a strange coincidence that the day “This Is How Tony Got Elected” appears that within a few hours, the site disappears, leaving no evidence that these people once cared about “good, sustainable and forward-thinking government”.

Well, this is hardly shades of 1984. I mean, I don’t even know that there was a direct connection to the Liberal Party it may have just been created by a group of concerned young citizens determined to create a stronger economy led by someone who wears speedos and can do a pull-up.

Whatever, it’s gone, and if that’s because of what I wrote yesterday then I’ll need to be careful what I write in future.

I mean, imagine if I wrote about Tony Abbott, and he was gone the next day.

Labor supporters would never forgive me.

Regaining goodwill

December 25, 2014
Written by: Kaye Lee
46 Replies

Joe Hockey said “We are going to give economic reform a red hot go in 2015.”

He went on to say “The taxation discussion with the Australian people next year will not be about increasing the revenue take for the Commonwealth, it needs to be how we can have a taxation system that makes us a more efficient and productive nation, and is fairer for all Australians.”

If we want to make revenue collection fairer, and we want to cut wasteful spending, then I have a few suggestions of where to start.

Corporate tax avoidance

Tackling corporate tax avoidance is an urgent priority; Australia does not have a spending problem, it has a revenue problem and it must be fixed.

Up to $80 billion was foregone by the taxman between 2004 and 2013.

Superannuation tax concessions

Superannuation tax concessions will cost the budget around $35 billion in 2013-14 projected to rise at a staggering 12 per cent annually to be $50.7 billion in 2016-17.

Capital Gains Tax and Negative gearing

Generous government tax breaks for property investors see them benefit from a 50% discount on capital gains tax (at a cost to the government’s budget of $4.4 billion per year) and negative gearing (costing $2.4 billion a year).

Fossil fuel subsidies

The Government will spend almost $14 billion in the next four years on fossil fuel subsidies to the big mining corporations.

Fighter jets

Tony Abbott said Australia will acquire another 58 Joint Strike Fighters at a cost of around $90 million per plane; $24 billion has been budgeted to purchase and operate the aircraft until 2024.

Submarines

A decision to spend more than $20 billion on up to 10 Japanese submarines will be announced before the end of the year (maybe?)

Offshore detention

The Commission of Audit’s report shows that in the past four years, the Australian government has increased spending on the detention and processing of asylum seekers who arrive by boat by 129 per cent each year. Costs have skyrocketed from $118.4 million in 2009–10 to $3.3 billion in 2013–14.

This is the fastest growing government program and projected costs over the forward estimates amount to more than $10 billion.

(It costs $400,000 a year to hold an asylum seeker in offshore detention, $239,000 to hold them in detention in Australia, and less than $100,000 for an asylum seeker to live in community detention. In contrast, it is around $40,000 for an asylum seeker to live in the community on a bridging visa while their claim is processed.)

Transfield

The Abbott government has given Transfield Services a $1.22 billion government contract to run immigration detention centres on Nauru and Manus Island.

(Tony Shepherd, who was the chairman of Transfield until he resigned in October to Head the Commission of Audit, left with more than 200,000 Transfield shares, allocated to his family superannuation fund, on top of his final salary of $380,000. Shares in Transfield soared 20.8 per cent on the news, lifting the company’s market capitalisation by about $80 million. He now heads the WestConnex Delivery Authority where money from the East-West link may be redirected)

Employment Service Providers

The Coalition Government has released its exposure draft of the purchasing arrangements for a new employment services model – a $5.1 billion investment over three years from July 1, 2015 – which includes the new Work for the Dole scheme.

Emissions Reduction Fund

Under the ERF the government will spend $2.55 billion to purchase emissions reductions through auctions.

Public Service redundancies

The federal government is on track to fork out $1 billion in redundancy payouts to public servants even before entitlements such as leave are paid.

School chaplains

School chaplaincy will be continued for another five years at a cost of $245.3 million. Under the program, 3700 schools are eligible for up to $72,000 funding to employ chaplains.

Marriage guidance vouchers

NEWLYWEDS across Australia will be given a $200 voucher for marriage counselling from July 1, as part of a $20 million trial to strengthen relationships and avoid family breakdowns.

Tim Wilson

TONY Abbott’s hand-picked human rights adviser has been given a $56,000 expenses package to top up his six-figure salary. Human Rights Commissioner Tim Wilson now has a total salary of $389,000 plus vehicle and telephone expenses following a recent decision by the Remuneration Tribunal.

Hope that gets you started Joe, or whoever is now doing the budget. (Cormann? Frydenberg? Thawley? Credlin? Rinehart?)

PS: In light of the above potential savings, you may want to read my plan to get half a million people employed at a cost of $8.8 billion

PPS: In South Africa, Boxing Day was renamed Day of Goodwill in 1994. May you use it to contemplate wisely.

That was then…this is now

December 13, 2014
Written by: Kaye Lee
30 Replies

In 2011 Joe Hockey said “No qualifications, all the excuses that Wayne Swan talks about – falling commodity prices, a high Australian dollar, nominal growth not being up to standard. Somehow the GFC is ongoing all the time. So yes, we are upset about this … they think the Australian people over summer will forget the solemn promises.”

This week, when admitting that MYEFO will show the deficit has deepened and the promise of a surplus in 2018-19 has been abandoned, Hockey said “We have faced some significant headwinds this year. Obviously the global economy has come off a bit, iron ore prices have dropped dramatically and we have had some opposition in the Senate that has made it harder.”

After rubbishing the Rudd government’s stimulus spending, Hockey now says the delayed surplus was a deliberate measure to avoid dampening economic activity with a sharp withdrawal of public money.

“We want to keep the economy going, we want to keep it strong …we want to keep that momentum going.”

And he isn’t the only one finding governing is a tad harder than bagging out the other guy.

When the Labor government sought a seat on the UN Security Council, Julie Bishop said “There really has been no justification for the benefit that will accrue to Australia by pursuing a seat at this time.”

Then, in a press conference in New York in November, Ms Bishop delighted in taking an extra minute to remind journalists who’d failed to ask about Australia’s achievements on the Security Council of the “successful two years” our membership had delivered.

Julie has rather enjoyed basking in the limelight but she has also had her problems.

In an interview with the ABC in 2012 while in opposition, Ms Bishop said climate change funding should not be “disguised as foreign aid funding”.

“We would certainly not spend our foreign aid budget on climate change programs,” she said.

In an interview with the Australian in November last year, Mr Abbott said “We are committed to dismantling the Bob Brown bank [the Clean Energy Finance Corporation] at home so it would be impossible for us to support a Bob Brown bank on an international scale.”

After a meeting with Angela Merkel in November this year, Tony Abbott said of the Green Climate Fund “We also have a Clean Energy Finance Corporation which was established by the former government and there is $10bn in capital which has been allocated to this. In addition to those two funds a proportion of our overseas aid, particularly in the Pacific, is allocated for various environmental schemes including schemes to deal with climate change. So, we are doing a very great deal and I suppose given what we are doing we don’t intend, at this time, to do more.”

Less than a month later, Prime Minister Tony Abbott and Foreign Minister Julie Bishop said the government would take $200 million from Australia’s foreign aid budget over four years to put into the Green Climate Fund.

“I think it’s now fair and reasonable for the government to make a modest, prudent and proportionate commitment to this climate mitigation fund,” he said, adding that the $200 million would be “strictly” invested in “practical” projects in the Asia Pacific region, even though he has no part in the administration of the fund.

Keeping up with Christopher Pyne on education funding is harder than working out Dutton’s GP co-payment or Abbott’s Paid Parental Leave scheme.

One thing Pyne has continually stressed is the need to improve teacher quality yet the budget tends to indicate he only wants to do that in private schools.

“The Government will achieve savings of $19.9 million over five years from 2013‑14 through efficiencies in the operations of the Australian Institute for Teaching and School Leadership (AITSL) including a refocus on core priorities. This includes savings of $9.5 million over five years from 2013‑14 from funding allocated to AITSL by the former Government for its National Plan for School Improvement.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

The Government will provide $4.9 million over two years from 2013‑14 to the Australian Institute for Teaching and School Leadership for the continuation of the Australian Government Quality Teacher Programme (AGQTP). The AGQTP provides funding to non‑government education authorities in each state and territory to improve the quality of education through projects and activities that offer teachers and school leaders opportunities to develop their skills.”

If I was to try to list all the inconsistencies, backflips, and hypocrisies being committed on a daily basis by this government it would be a full-time job requiring daily updates. And they will be forced into more because their entire approach to governing has been just wrong.

Tony Abbott sees negotiation as weakness and compromise as failure. He is utterly incapable of admitting to being wrong – “We had a good policy, now we have a better one”. He must blame others for any problems because it couldn’t possibly be that he is doing anything amiss, even as we have Hockey now grudgingly realising the benefits of stimulus spending.

Tony Abbott is so woeful even his most ardent admirers are forced to report their disappointment. Fluff pieces with morning show hosts even turn into fiascos as Ben Jenkins reports.

It’s actually just a case of the PM suffering from a phenomenon political scientists call “being extremely shithouse at interviews”.

While Abbott tries valiantly to smash the ship of state through the iceberg of public opinion, it’s easy to forget that our prime minister is, and always has been, a terrible interviewee. His complete inability to change tack renders any interview a stilted exchange with a distressingly sinewy random word generator, in which an answer matching a question is purely a matter of chance.

True, it’s better than his previous strategy of “wordlessly stare into Mark Riley’s soul until he leaves you alone out of pure awkwardness”, but not by a huge margin. Abbott is so unwilling to back down on any matter at all that when he calls David Koch “Chris” for a second time during the interview, the PM doesn’t even acknowledge it, let alone apologise.

When the script stinks and the lead actor is a ham who cannot improvise who is supported by a cast of theatrical sycophants directed by Rasputin in animal print our government is now a farce waiting to become a tragedy.

Message of the day

December 6, 2014
Written by: Kaye Lee
95 Replies

As Lenore Taylor reported on Friday, every morning the major parties send out the “messages” of the day. These aren’t really super-secret documents since ministers and MPs dutifully recite them into any available open microphone.

At the media briefing after the Coalition’s party meeting the assembled journalists were told, “The prime minister said 2014 had been a very good year for the government and he’s confident next year would be at least as good if not better.”

And last night on Lateline we saw Steve Ciobo dutifully relaying the “message”.

The Abbott government’s plan is THE ONLY PLAN to improve economic growth and repair the budget – regardless of what question is asked, this is to be the reply. They are to repeat over and over again, what a good year it has been.

Look how Scott has stopped the boats. (But don’t look at the offshore gulags where children are locked up in appalling conditions.)

Look at how many Free Trade Agreements Andrew has signed. (But don’t ask for the detail about what we sacrificed for those signatures.)

Look at Julie – isn’t she pretty? (But don’t ask us for foreign aid or any contribution to global action on anything that doesn’t involve bombing people.)

Look at Matthias – there’s a man who knows how to repeat the lines (But any deficit blowout is most definitely not his fault – it’s Labor’s debt and deficit disaster and when you get sick of that it’s Joe’s fault for not selling the message.)

Ciobo slipped right into the script we knew was coming. He said that the Coalition has already cut Labor’s debt by over $300 billion.

That would be a spectacular feat if true since gross debt when they left office was about $280 billion.

PEFO showed that gross debt was expected to climb to $370bn by the end of 2016/17. In Hockey’s MYEFO that figure had grown to $430 billion and then to $450 billion in the budget, and by all accounts it is still growing as we shall see in Hockey’s next MYEFO in a couple of weeks.

So where is Ciobo getting his figures from? This little piece of number gymnastics from Hockey’s budget.

“The published 2013‑14 MYEFO face value of CGS on issue figure of $667 billion in 2023‑24 did not include a cap on tax receipts. The projection for MYEFO in Chart 1 includes a 23.9 per cent of GDP cap on tax receipts, increasing the face value of CGS on issue projected to $748 billion in 2023‑24.

In comparison, at 2014‑15 Budget CGS on issue is projected to be $389 billion in 2023‑24, an improvement of $359 billion. By 2024‑25, the projected end‑of‑year face value of CGS on issue is expected to reach $362 billion.”

When Emma Alberice pointed out that using MYEFO as a basis of comparison was ignoring the Charter of Budget Honesty, and that it contained Hockey’s spending and revenue cutting measures like gifting the RBA almost $9 billion and foregoing the revenue from the carbon and mining taxes and wasting billions on Direct Action, Ciobo just spoke over the top of her saying Labor had left the RBA in a vulnerable position. Tony Burke then tried to point out that the Coalition had taken $1.24 billion in dividends from the RBA this year, something they roundly criticised Wayne Swan for doing, he also was interrupted and spoken over.

The first instalment, over $600 million, has already been paid back to the government in August.

As reported in Crikey:

“When Wayne Swan took a dividend of just $500 million from the RBA in 2012-13, he was accused of “raiding” the bank, by Hockey among others. It was subsequently revealed that Treasury, after consultations with the RBA, didn’t believe there was any imperative to increase the Reserve Bank’s capital buffers. But if $500 million is a raid, over $1.2 billion looks more like open plunder. How dearly Swan would have liked being able to get another $700 million that year. So as some of us predicted back in 2013 Hockey, having blown out the 2013-14 deficit with his $9 billion gift to the RBA and blamed it on Labor, has got his first repayment to bolster the 2014-15 budget bottom line.

Curiously there is no mention of the dividend in RBA governor Glenn Stevens’ foreword to the report, despite discussing how the $8.8 billion had replenished the bank’s capital reserves; you have to go down to page 77 to get an explanation of the dividend. It’s particularly curious given that the dividend — whether one is to be paid or not, and how large it will be — is regularly mentioned in the forewords of previous annual reports. The omission doesn’t help the impression that the whole business of the $8.8 billion has undermined the perception of RBA independence.”

This politicising of independent bodies like the RBA, Infrastructure Australia, NBNco, the CSIRO, the AFP and the ABC, is a very worrying trend designed to keep even more information from the public.

So my “message for the day” is stop the crap Joe and co. If MSM journalists are incapable of exposing the bullshit then step aside – you have made yourselves redundant.

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It’s all about the jobs, bout the jobs, no trouble

November 18, 2014
Written by: Kaye Lee
41 Replies

Tony Abbott and Joe Hockey have been at pains to tell us it’s all about “jobs and growth”. Now that we have “a number” the economies of the world will be saved. But how do we intend to reach this magical figure of “2% growth above what is expected”?

The government’s action plan has listed five “key commitments” to underpin its pledge.

The first key commitment to expanding economic activity is infrastructure spending, including its “asset recycling initiative” – encouraging state governments to privatise assets and then plough the proceeds into new projects.

Considering we are selling the profitable Medibank Private to invest in railways for dubious Indian coal mining ventures, this seems an avenue to privatising profits and socialising losses. No doubt some Liberal Party donors will do well out of it.

“Employment welfare reforms” is ranked as the No 2 commitment, and notes that the changes will “strengthen participation and activation strategies”.

By cutting payments entirely to some unemployed and requiring jobseekers to search for more jobs to qualify for payments, the government argues it will spur the unemployed to look for work rather than live on welfare, thereby boosting economic activity.

But that boost can only come if there are jobs for the unemployed to get and there seems little in the way of a plan to create jobs beyond “axe the tax” and “build some roads”.

Anglicare Australia commissioned a report called “Beyond Supply and Demand” which rubbished the Abbott government’s treatment of the long-term unemployed, calling for a “life first” rather than a “work first” approach to end joblessness.

Anglicare executive director Roland Manderson said

“It’s a problem if the public debate hinges on an assumption that people can just try harder and get work, that’s not true. What is true is that people can get work and develop really great work but you need to put that investment in at the front end. The problem with the ‘earn or learn’ (budget measure) is it makes the assumption that any training will do the trick. It’s disempowering to train people who might find work for a short time, but then are out of work again because they haven’t worked through their life barriers.”

Labor assistant treasury spokesman Andrew Leigh said cuts to welfare payments such as the unemployment benefit, family tax benefits and the pension would act to suppress economic growth.

“If you produce a budget that reduces the income of the poor, it has an impact on consumer demand because they spend everything they’ve got,” he said. “That will detract from economic growth.”

The other key commitments are “cutting red tape”, “contributing to global trade liberalisation” and “creating self-reliant industries”.

If one thing came out of the many millions spent on inquiries into the Home Insulation Program, it was to underline the dangers of “cutting red tape” and oversight.

The most obvious result of this commitment is to fast track development and mining approvals without regard to environmental impacts, and to remove rights of appeal.

The detail of the China Free Trade Agreement, or Memorandum of Understanding to be more accurate, is yet to be released so it is difficult to assess its impact but one concession we made was to allow Chinese companies to bring in their own workers. I’m not sure how selling our assets to foreign companies who send their profits back home and who employ foreign workers will actually boost our economy.

Andrew Robb also admitted that Treasury has not done modelling on the overall impact of this agreement and he does not know how it will affect our balance of trade.

The commitment to “create self-reliant industries” seems to fly in the face of Abbott’s staunch resistance to reducing fossil fuel subsidies. And how does Newman’s Galilee railway and Hunt’s Emissions Reduction Fund fit into that plan?

As was forcibly pointed out over the weekend, renewable energy is an industry of the future, but rather than taking advantage of the billions available for investment in this area, Abbott seems determined to kill off this industry and the tens of thousands of jobs that go with it, presumably because it offers competition to those humanitarian coal producers and users.

Which seems strange as the Coalition’s plan for more jobs is based on improving productivity and competitiveness.

Across the globe, mining productivity has declined by 20 per cent over the past seven years, despite the push for increased output, and declining market conditions.

Efficiency in the Australian mining industry has received a stern rebuke from PricewaterhouseCoopers (PwC), rated as one of the least productive regions in the world.

The damning report ‘Mining for Efficiency’ states that Australia is the second least productive mining region in the world, with Africa taking the wooden spoon, and North America beating Australia on all classes of equipment.

The report claims there is an inherent conflict between the productivity plans of the mining boom which were based on increased volumes, and plans based on cost reduction which are now coming to the fore of business strategy.

Despite claims by industry lobby groups that high wages in Australia will impact on our competitiveness, results actually show “significant divergences” between mines in close proximity chasing the same minerals under the same industrial relations conditions.

Equipment and the way it is used is a key focus of the report, which shows that productivity differences between the best and worst performing mines are stark, with some of the best practice outputs coming in at more than 100 per cent greater than the median performers.

“The popular tagline of the mining sector is that the miners are serious about productivity,” PwC states.

“We suggest that most are reducing costs and increasing volumes but there are precious few with legitimate claims to improving core productivity in their open cut operations.”

Comments in the report echoed the new fashion for cost reduction employed by the major miners who continue to sell off ‘non-core’ assets, such as BHP Billiton had done earlier this year with Nickelwest operations.

“Miners are banking the first available dividend, selling or segregating mines deemed too hard to fix and tempering expectations of further productivity gains by citing a combination of labour laws, high costs, regulatory hold ups and mine configuration constraints,” Lumley said.

And then this morning, we are hit with the news that the axe has fallen again at Australia’s research agency, the CSIRO, with another 75 researchers retrenched across the organisation’s future manufacturing, agriculture and digital productivity programs.

All three affected areas belong to the CSIRO’s flagship “impact science” division, set up in 2003, which aims to partner with universities and the private sector to bring “large scale and mission directed science” to bear on major national priorities.

Future manufacturing research will be hardest hit, losing up to 45 full-time positions, including in advanced fibres, biomedical manufacturing and high-performance metals.

Among the work to which future manufacturing research scientists have contributed is state-of-the-art ceramic body armour for Australian soldiers, the southern hemisphere’s first Arcam additive manufacturing facility, which enables 3D printing of metals, and a spray-on topcoat for aircraft.

But this shouldn’t surprise us from a government who thinks coal is the industry of the future and a Treasurer who thinks that climate change is “absolutely not” an impediment to economic growth

Actions speak louder than words

November 15, 2014
Written by: Kaye Lee
23 Replies

Joe Hockey has been making noise about tax avoidance.

“They’re stealing from us and our community,” he told the Nine Network on Friday, labelling tax cheats as “thieves.”

Tony Abbott told us we should judge the Coalition on their actions rather than their words – sound advice considering their words bear no resemblance to what they actually do – so it would be timely to consider what they have done to address this growing problem.

While other countries are closing their tax minimisation loopholes, the Abbott government has spent the past year opening them up.

One of Treasurer Joe Hockey’s first acts in office was to roll back Labor’s measures to tackle profit shifting and improving tax transparency – effectively handing back $1.1 billion to big global firms.

As it pushes for a G20 summit agreement this weekend to crack down on corporate tax evasion, the Abbott government has set a timetable for action that is about one year behind the biggest European economies including Britain, France and Germany.

The “early adopters” in the global program will begin exchanging information in September 2017, however, the exchange of information with Australian authorities will not take place until September 2018.

In March this year, the ATO announced an amnesty for offshore tax cheats. For those who come forward before the end of the calendar year, there is a guarantee of no prosecution and only four years of offshore income is assessed with a maximum shortfall penalty of 10 per cent.

“For lots of people, their forebearers came from war-torn Europe”, tax lawyer Mark Leibler told the ABC’s AM program. “They wanted to keep nest eggs overseas, not primarily in order to avoid or evade tax, but just as a measure of security.”

So these people and their families have been avoiding tax since they arrived here after the war but let’s not worry about that.

Around $150 million worth of assets is the most declared by one person so far. The money has come from 40 countries including Switzerland, the UK, Hong Kong, Israel and Singapore.

Australian Tax Office deputy commissioner, Greg Williams, said new migrants with limited knowledge of Australia’s tax system and people that have deliberately sent money offshore are also among those coming forward.

“You’ve got that whole gamut from old money, new money, recent migrants and people sending the money offshore,” he said.

These ‘people’ include our own government.

Australia’s Future Fund has revealed it has invested more than $20 billion through offshore tax shelters, including the Cayman Islands, warning of lower returns if it does not minimise its tax bill.

The $77bn fund for federal public-servant pensions has revealed that 14.4 per cent of its assets, worth about $11bn, are invested in subsidiaries based in the Cayman Islands (a tax haven in the Caribbean) and a further 1.3 per cent is in its subsidiaries in the British Virgin Islands and Jersey.

On top of this, the fund has tipped 12.6 per cent of assets, about $9.6bn, into private market vehicles based in these tax shelters and a small fraction is invested in a vehicle based in Luxembourg.

Answers to a Senate inquiry revealed that, at June 30, the fund held stakes in 15 tobacco manufacturers including a $55.4 million stake in British American Tobacco in Britain, $44.5m in Lorillard and a $44.9m investment in Philip Morris in the US.

Individuals within the government also embrace the benefits of tax “minimisation”.

In July, it was disclosed that Malcolm Turnbull, Australia’s second-richest parliamentarian, has invested in a ”vulture fund” based in the tax haven Cayman Islands.

Mr Turnbull, who has divested himself of shares and switched his investments to managed funds and hedge funds since being elected, updated the register of members’ interests on June 18.

The IPA, not surprisingly, is against any moves to tighten up the laws.

“Inspired by the sensationalist headlines, the emerging policy agenda for a clamp down on tax avoidance should be seen for what it truly is: a ploy by indebted countries, with overgrown public sectors, to hoover up more cash from productive people and enterprises, stifling tax competition in the process.”

You have to give them credit for never letting morality or ethics interfere. They were no doubt impressed when their much-loved patron, Rupert Murdoch, single-handedly blew an almost billion dollar hole in our budget when the ATO chose not to appeal a court ruling condoning Murdoch’s tax avoidance practices.

In a 1989 meeting, four News Corp Australia executives exchanged cheques and share transfers between local and overseas subsidiaries that moved through several currencies.

They were paper transactions; no funds actually moved. In 2000 and 2001 the loans were unwound. With the Australian dollar riding high, News Corp’s Australian subsidiaries recorded a $2 billion loss, while other subsidiaries in tax havens recorded a $2 billion gain.

By last July that paper “loss”, booked against News Corp’s Australian newspaper operations, had become an $882 million cash payout.

Under a legal arrangement when the company was spun off last June, News was forced to pass all of the tax payout to Mr Murdoch’s 21st Century Fox.

News Corp said it had retained $A81 million because it faced income tax charges on the interest payments by the Tax Office. However it seems unlikely to actually pay these funds: News Corp Australia carried another $1.5 billion in tax deductions from a separate paper shuffle that it made when News reincorporated in the US.

The Australian Taxation Office says its $882 million loss to Rupert Murdoch’s News Corporation may just be the tip of the iceberg.

Tax Commissioner Chris Jordan and deputy Neil Olesen told a parliamentary inquiry the Tax Office has recently lost even more valuable cases against individual taxpayers.

“There are others bigger than this one,” Mr Olesen told a parliamentary hearing in March. “There were significant amounts at stake that we were also unsuccessful with through the courts.”

In a current case, Australian tax authorities allege multinational oil giant Chevron used a series of loans and related party payments worth billions of dollars to slash its tax bill by up to $258 million. The claim is now being heard before the Federal Court of NSW.

Despite growing pressure to crack down on multinationals reaping massive profits in Australia each year and paying little tax, the ATO has been scaling back its technical ability to force the “transnationals” to pay up.

After cuts of $189 million in the May budget, the ATO announced that they had to cut staff by 2,100 people by the end of October.

Community and Public Sector Union (CPSU) deputy national president Alistair Waters said “The tax office has provided evidence to the Senate that for every $1 spent on resources by the tax office, that collects $6 in tax revenue. Obviously if you are pulling resources out of the tax office that makes it easier for people who might want to avoid paying their tax.”

Public servants with hundreds of years of combined technical know-how have left the ATO’s “Internationals’ Group” in recent years, with the process accelerated by the present massive cuts to the agency.

Private advisors hired by “transnationals” to minimise their tax payments know too much about internal workings of the ATO and are using their insider knowledge to profit their clients.

Case deadlines of 90 days imposed on audit teams by ATO bosses eager to increase the number of cases covered have allowed transnationals to simply “wait out” the Taxation Office or to have low-ball settlements accepted.

Swedish furniture giant IKEA paid just $7.7 million in tax in Australia in 2013-2014, despite banking an operating profit of $92 million for its Australian activities that year.

Even the government’s domestic decisions belie their stated willingness to crack down on tax rorting.

Repealing the legislation regarding novated car leases and FBT cost us $1.8 billion in revenue and the only people to benefit are those who fraudulently claim business usage of their car, and the salary-packaging industry that has sprung up to service this perk.

But what can you expect from a Prime Minister who keeps caucus waiting for an hour – his excuse being “he had to schedule an early morning visit to a cancer research centre in Melbourne on Tuesday so that he could justify billing taxpayers to be in the city for a “private function” the night before”.

Or a Treasurer who defended “his practice of claiming a $270-a-night taxpayer-funded travelling allowance to stay in a Canberra house majority-owned by his wife” as did the Communications Minister who “rented a house from his wife Lucy when in Canberra.”

In Canberra, MPs are not required to show a receipt to prove they stayed in a hotel because the blanket $270 rate applies whether you stay in a hotel or a house owned by yourself or another person.

Because of the rules, many MPs purchase property in Canberra to provide a base during parliamentary sittings and use their travel allowance to pay off their mortgage.

We also have our Prime Minister, Attorney-General, Foreign Minister and Agriculture Minister defending their practice to claim travel and accommodation costs to attend weddings whilst grudgingly refunding the money only after it was exposed in the press. Attendance at sporting events apparently still constitutes official business.

Tony Abbott had promised to lead an honest government that would respect taxpayers’ money and end the age of entitlement.

Joe Hockey has “vowed to give the Tax Office whatever laws it needs” and is “determined to use all available resources to close tax loopholes.”

Sorry boys – your actions make me doubt your sincerity.

Upside down downunder

October 29, 2014
Written by: Kaye Lee
21 Replies

We sure do things upside down downunder.

Tony Abbott’s chief business adviser first tells us we are unprepared for global cooling, followed by lashing out at the UN response to the Ebola outbreak and labelling the world body a “refuge of anti-western authoritarians bent on achieving one-world government”.

Newman wrote an opinion piece for the Australian newspaper in which he said the UN’s “leanings are predominantly socialist and antipathetical to the future security and prosperity of the west”.

“The philosophy of the UN is basically anti-capitalist,” he writes. “Countries that pay the most dues, mostly rich Anglo countries, are those to which the world body shows the greatest disdain.”

Is he suggesting that we should receive foreign aid in thanks for using up all of the world’s resources while killing the planet?

Aside from Maurice Newman’s bizarre ravings, our inaction on climate change, our inadequate response to the Ebola crisis, the chief executive of Whitehaven Coal telling us that coal “may well be the only energy source” that can address man-made climate change, and the sheer bastardry of cutting real wages and entitlements to defence personnel as we send them off to war…..we are also ignoring the call from the rest of the world to take action to address income inequality.

Despite being one of the richest nations on earth, one in seven Australians are living in poverty. Thirty per cent of Australians who receive social security payments live below the poverty line, including 55 per cent of those on unemployment benefits. Fifteen per cent of aged pensioners live in poverty.

So it seems unfathomable as to why these people would be targeted when the government is looking for savings.

Since 1980, the richest 1 percent increased their share of income in 24 out of 26 countries for which the IMF have data.

In the US, the share of income taken home by the top one percent more than doubled since the 1980s, returning to where it was on the eve of the Great Depression. In the UK, France, and Germany, the share of private capital in national income is now back to levels last seen almost a century ago.

The 85 richest people in the world, who could fit into a single London double-decker, control as much wealth as the poorest half of the global population– that is 3.5 billion people.

With facts like these, it is no wonder that rising inequality has risen to the top of the agenda—not only among groups normally focused on social justice, but also increasingly among politicians, central bankers, and business leaders.

Our politicians are telling us that they want to provide the opportunity for each person to be their best selves but the reality is that we do not have equal opportunity. Money will always buy better-quality education and health care, for example. But due to current levels of inequality, too many people in too many countries have only the most basic access to these services, if at all. Fundamentally, excessive inequality makes capitalism less inclusive. It hinders people from participating fully and developing their potential.

Disparity also brings division. The principles of solidarity and reciprocity that bind societies together are more likely to erode in excessively unequal societies. History also teaches us that democracy begins to fray at the edges once political battles separate the haves against the have-nots.

A greater concentration of wealth could—if unchecked—even undermine the principles of meritocracy and democracy. It could undermine the principle of equal rights proclaimed in the 1948 Universal Declaration of Human Rights.

Redistributive policies always produce winners and losers. Yet if we want capitalism to do its job—enabling as many people as possible to participate and benefit from the economy—then it needs to be more inclusive. That means addressing extreme income disparity.

One way to address this is through a progressive tax system but instead, our government is looking at regressive measures like increasing the fuel excise and the GST. These will impact far more greatly on low income earners.

Another avenue is to expand access to education and health but instead, our government is cutting needs-based education funding, making the cost of tertiary education prohibitive, and introducing a co-payment to discourage people from seeing the doctor.

Abbott, Hockey and Cormann assure us that if we make the rich richer we will all benefit. Everyone from the Pope to Rupert Murdoch knows this is rubbish.

Two weeks ago In Washington, in a speech to the world’s most powerful finance ministers and central bankers, Rupert Murdoch accused them of making policies to benefit the super rich.

In it, he blamed the leaders for increasing inequality, said the ladder of generational progress was now at risk, and warned that a moment of great global reckoning had arrived.

I note that his criticism of poor policy does not stop him from taking advantage of said policies. “I’ll only be as good as you make me be” seems to be the prevailing principle.

Hockey’s response to Murdoch’s barrage was interesting.

“Certainly, as he says, loose monetary policy has helped people who own a lot of assets to become richer, and that’s why loose monetary policy needs to be reversed over time, and we’ll get back to normal levels of monetary policy, normal levels of interest rates,” Mr Hockey told AM’s presenter Chris Uhlmann.

“Governments, on the other hand, have also run out of money and can’t keep spending money – particularly on the credit card – to try and stimulate growth.

“So, if loose monetary policy is not available and actually makes the rich get richer, and governments have run out of money, how are we going to get growth going in the world economy over the next few years? And the only way to do it is through structural changes that make us better at what we do.”

The structural changes suggested by Mr Hockey will increase inequality and send more people into poverty which is indeed what Coalition governments are good at doing.

Pope Francis recently tweeted “Inequality is the root of social evil.”

In last autumn’s essay, Evangelii Gaudium, Francis wrote that: “Just as the commandment ‘Thou shalt not kill’ sets a clear limit in order to safeguard the value of human life, today we also have to say ‘Thou shalt not’ to an economy of exclusion and inequality. Such an economy kills … Today everything comes under the laws of competition and the survival of the fittest, where the powerful feed upon the powerless. As a consequence, masses of people find themselves excluded and marginalised: without work, without possibilities, without any means of escape. Human beings are themselves considered consumer goods to be used and then discarded.”

The claim that human beings have an intrinsic value in themselves, irrespective of their usefulness to other people, is one that unites Christianity and socialism. But if you think the market is the real world, it makes no sense at all, since in the market, value is simply the outcome of supply and demand.

A recent article by Lissa Johnson (on Ne Matilda) discusses decades of research into political psychology.

“Another ubiquitous finding is that conservatism is inversely related to the pursuit of social and economic equality. Conservatism correlates strongly with a preference for fixed social hierarchies entailing inequality between social groups, along with punitive attitudes towards marginalised and/or non-conforming members of society, who are seen as destabilising elements that threaten social cohesion.”

Australia is indeed a wondrous place where coal will save us from climate change, where helping the rich to get richer will make us all happier, and where the poor will be asked to pay off the nation’s debt.

The case for a Federal ICAC

October 15, 2014
Written by: Kaye Lee
39 Replies

On May 15 this year, the Australian Greens Leader, Senator Christine Milne, unsuccessfully introduced a bill to create a national anti-corruption body. She makes a powerful case, raising many very concerning examples. Every Australian should read what she had to say.

“The federal government is the only jurisdiction without the infrastructure to confront corruption. Every time wrongdoing is exposed, one-off reviews or ad hoc investigations are launched.

I want to take this opportunity to congratulate the people blockading at Bentley against Metgasco because today the New South Wales government has suspended the licence that was granted because there was no consultation with local people and because, through the Independent Commission Against Corruption investigations, it is pretty obvious that the licences were given wrongly. But it should not take ordinary citizens taking the action that they have to hold governments to account, to make sure that licences are not given as a result of money paid behind the scenes or undue influence or favours in any other way.

And now for the third time the Greens have this bill before the parliament to create this office to crack down on public sector corruption and promote integrity in our public institutions. In fact, I cannot see why anybody would oppose setting up a national ICAC, and I will be very interested to hear what excuses are offered. It is pretty obvious that corruption does not end at the border of New South Wales; it does not end at any other state border. When you consider the likelihood of corruption in the federal arena, it is pretty overwhelming. So many major projects are dependent on some federal licence being given, some engagement with a federal agency. Therefore, there is a huge temptation for people, both at the political level and in the bureaucracy, to engage in talking with lobbyists-and who knows where it will end up.

I want to give an example that is on the go right now. You have the financial services industry, which did not like one little bit the fact that in the last government Labor and the Greens moved to change the law to require those people in the financial services industry to act in the best interests of their client. Now what is wrong with someone being required to act in the best interests of their client? You would expect that to be the case. But what has been revealed is that in a whole lot of the managed investment schemes, for example, the financial advisers were not telling the people they were selling the products to of the massive kickbacks that they, the financial advisers, were getting as a result of recommending that product. So what happened? The financial advisers became rich, but the people who bought the product, well those people lost and lost out badly.

When I think of the tragedy of the people who were sucked into buying from Great Southern Plantations, Gunns and the rest, you have to ask the question: how on earth did the financial services industry get to the point where it was able to con the parliament into agreeing that it could sell a product without having to act in the communities’ or its clients’ best interest?

Now we have a situation where the financial services industry has persuaded Prime Minister Tony Abbott’s government to change the act back to remove the need for financial advisers to act in the best interests of the client. And we what do we find? We find that the financial services industry is part of the North Sydney Forum, which is a fundraiser for the federal Liberal Party-in particular, Treasurer Joe Hockey. What does that tell you about the influence of lobbyists-the way that lobbying groups get involved in private fundraising engagement with political parties? The delivery is given here in parliament in terms of outcomes. And it is entirely secret. Until this was forced out recently, nobody would have known about that backroom dealing that was going on.

That is why it is critical. The same thing goes with novated leasing and a whole range of things, including the salary packaging industry. That industry is in there with the car industry to set up a situation where you can minimise your taxable income by going through this lurk of novated leases. We got rid of it in the last period of government, and I see that the current Liberal Party is about to restore the rort.

That is the kind of thing that goes on, and that is why the community is getting increasingly frustrated and wants to have some reassurance that there is some way of investigating what they can clearly see is on the verge of corruption, if not corruption.

In this Greens legislation, the National Office of Integrity Commissioner is modelled on the successful New South Wales Independent Commission Against Corruption. It is based on provisions in the Law Enforcement Integrity Commissioner Act 2006. The first part of it is about the National Integrity Commissioner, and that is concerned with corruption in relation to public officials and Commonwealth agencies, and has full investigative powers, including public and private hearings and summoning any person or agency to produce documents and appear before the commissioner.

I think that is fair enough. Why shouldn’t public officials, Commonwealth agencies and parliamentarians be subject to that kind of oversight in the federal parliament? I will give you an example-it happened recently-which many people will have read about. Just in this last month we saw two men-one from the Australian Bureau of Statistics and another working with the National Australia Bank-using unpublished unemployment, retail and trade data at the Bureau of Statistics to trade in foreign exchange derivatives. Somebody working in a government agency was working with someone in the private sector and using that information. That insider trading brought in millions of dollars to the two men, but in this case it has been picked up by our criminal justice system. I am glad it has been picked up by our criminal justice system, but it may not have been. What pathways do members of the community have to put forward matters and have them investigated?

I want to go to another example-the issue of Securency, a subsidiary of the Reserve Bank. Mr Warburton has been appointed by Prime Minister Abbott to review Australia’s renewable energy target. We know that he has been the subject of a secret internal investigation into his role as a former director of a firm involved in Australia’s worst foreign bribery scandal. That investigation and those findings by KPMG were sent, in February, to the Reserve Bank Board. They deal not only with Mr Warburton and his fellow former Note Printing Australia directors but go to the knowledge of, and handling by, Note Printing Australia’s sanctions-busting trip to Iraq in 1998. Yet yesterday, when I sought the parliament’s approval to put that document on the table of the parliament so that we can know what exactly went on and what KPMG found out about those directors-in particular, Mr Warburton-the government and the opposition voted together to prevent the Senate order that would have required that report to be tabled in the parliament. I put the question: why shouldn’t the parliament have access to that KPMG report on what has gone on?

I want to give another example. One of my constituents, who I will not name, is a fisherman in Tasmania. He was approached by two Austrade officials in Japan. He was asked to provide fish to this supposedly Japanese businessman who they vouched for. They said he was a credible person and that they had done the due diligence. They said that the government wanted this trade in order to develop the relationship with Japan in high-quality seafood. So this fisherman went ahead and did it, at the request of Austrade. He was quite happy with his own business. He did not need this business, but he went ahead with it because they asked him to.

The long and the short of it is that he provided the fish to this place in Japan-to the businessman whose bona fides Austrade vouched for. After a while the fish were collected but no payment was made. Later it was revealed that there was no such businessman. The person that Austrade had vouched for did not exist. Austrade had invited my constituent to get involved with a shonk. Why? In order to justify the Austrade office in Nagoya they had to show that they were turning over a certain amount of business. So they set up this whole thing. The result of it is that my constituent went broke, and the department backed their two officers to the hilt.

There was no natural justice in this. As far as I know, those two officials remain employed in Austrade. I think it is totally wrong. I have pursued it every which way, seeking natural justice for this person. But the bigger question here is: how many other Austrade officials around the world are setting up similar kinds of scams and presenting figures to the federal government on the extent of the business that they are engaged in when, in fact, it has all been set up to secure their postings rather than the business that was supposedly there to be delivered?

I will give you another example, under the Green Loans scheme in the last period of government. It was riddled with incidents of inappropriate behaviour from some public servants, who favoured particular suppliers. They split contracts so that they did not have to go to competitive tender. The audit reports into the scheme make for deeply troubling reading, with systematic breaches of procurement policies and basic financial management regulations. The question is: was it just maladministration or sloppiness? Were they under pressure to get these Green Loans and audits out the door? Did they do this in order to facilitate a government policy, to get it out the door? Or were any kickbacks paid? What actually was done when the audit reports came in and showed there were serious questions to be answered?

The public does not know, and neither does this parliament. Those of us who have constituents bring these things to us have no mechanism to have them investigated. And if we cannot actually give enough evidence for a breach of a criminal kind it goes nowhere. Well, I think that if it is good enough for the states to recognise that there is a high risk of corruption and that they want to actually try to eradicate corruption, then at the very least the federal parliament should go there as well.

It also goes to our international standing. We are a signatory to two important anticorruption conventions: the United Nations Convention Against Corruption, which entered into force in December 2005, and the Organisation for Economic Cooperation and Development Convention on Combating the Bribery of Foreign Public Officials in International Business Transactions. This is another one where Transparency International has previously criticised Australian law for its low and ineffective penalties for corruption. It found, in its 2009 report, that Australia made little or no effort to enforce the OECD Convention on Combating the Bribery of Foreign Public Officials in International Business Transactions.

I will give you another example: in Zambia, as I stand here, there is an Australian mining company over there trying to get a licence to put a mine in one of their biggest national parks. It was refused by the environment agency in Zambia but then that was overturned by a minister in that country. International NGOs have alleged clearly that money changed hands. And yet you have an Australian state government backing this company to the hilt. What is the arrangement? Who is involved in this?

You have the United States currently investigating BHP in China in relation to corruption. This was one of the things referred to the Australian Federal Police. It was not taken up by the Federal Police, but I raised it at the last estimates and they now have.

Equally, in Macau, where the Chinese took action against a citizen there for bribery in relation to casino developments-in particular, Crown casino developments. The Chinese citizen was jailed there for taking a bribe of $100 million to free-up the land for the casinos and provide the licences. And yet when that was referred to the Federal Police to look at from our end, what was done? Zilch, zero-nothing! Now, why? Why are we allowing this to happen? I would like to have a very considered explanation from my parliamentary colleagues in other political parties here as to what they could possibly have against setting up a national integrity commission-a commission against corruption.

The other thing we need to do is to reassure the public that the entitlements we get are appropriately accessed and spent. That is why as part of this National Integrity Commission, the Greens are saying that we want a new Office of the Independent Parliamentary Adviser, to advise MPs and ministers on entitlement claims and the ethical running of their offices that the public rightly expects. That adviser that would be tasked with developing a legally binding code of conduct for MPs for the parliament to adopt.

Of course, this goes to the heart of the recent wedding scandal, where people had claimed expenses to go to various weddings, functions and so on, and the question was really: were those really for parliamentary business or were they using an entitlement just because they could get access to it? There was the famous case here, many years ago, of an MP who flew to Perth and back and who did not leave the airport lounge, simply to get the entitlement in relation to frequent flyer points. This was using a public, taxpayer funded fare to fly from the eastern states to Perth, sit in a lounge, have lunch and come back in order to get the frequent flyer points. This is why we have had the awful scandal in the last parliament with the former Speaker, Peter Slipper, and allegations made about him and his use of entitlements. But he is not the only one by any means. There have been a lot of allegations. That is why it is actually to the benefit of parliamentarians that we get this, because it enables people to go and ask the question, ‘Is this an appropriate use of my entitlements or not?’ and actually to have that sorted by someone who is overseeing it.

So I implore the parliament: corruption is serious. It distorts our democracy and it hurts communities, communities who end up like those in the Bentley Blockade, having to take action because governments have colluded with business to get the outcomes that business wants against the community. So, come on: let’s get a national ICAC for Australia and let’s do it in this parliament to restore and maintain our reputation, and to help build trust in the parliament rather than the level of cynicism about the revolving door between big business and politics.”

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Do ya do ya do ya really care?

October 13, 2014
Written by: Kaye Lee
39 Replies

I make this pledge to you the Australian people.

I will govern for all Australians.

I want to lift everyone’s standard of living.

I want to see wages and benefits rise in line with a growing economy.

I want to see our hospitals and schools improving as we invest the proceeds of a well-run economy into the things that really count.

I won’t let you down.

This is my pledge to you.

-Tony Abbott campaign launch speech, August 25 2013

Nice words but let’s face it – the Abbott government doesn’t give a shit about you. The evidence is overwhelming.

With one in seven Australians living in poverty, we have a Prime Minister who spends hundreds of billions on defence, security, and buying armaments. We have a Prime Minister who is so stage-managed he refuses to face the electorate on Q&A.

Our Prime Minister for Indigenous Affairs has overseen the slashing of funding and the abolition of many successful initiatives that were working towards supporting our Indigenous people and closing the gap. But we have truancy officers aplenty, even if most of them are working for the dole.

We have a treasurer who feels those on welfare, the ‘leaners’, should be the ones to clear the country of debt. His justification for this is that he must cut spending and poor families get more money from the government than the rich, whilst steadfastly refusing to consider raising revenue by cracking down on tax avoidance.

He tells the world that our economy is in good shape while whipping up hysteria here about a non-existent emergency.

After coming to power on the promise of reducing the debt, Hockey has been borrowing so fast the net debt has increased from $178.10 billion when he took over to $217.55 billion at the end of August. PEFO numbers had net debt peaking at $219bn (12.7% of GDP) in 2015/16. The gross debt has risen from $290 billion to $345.035 billion – that’s extra borrowing of about one billion a week.

We have an education minister who has reneged on funding reform for schools, wants to make tertiary courses unaffordable, has closed down trades training centres, has insulted teachers, wasted money on a pointless review, and wants to rewrite history as a Christian crusade.

We have a health minister who is busily unwinding universal healthcare and preventative health agencies and who wants to discourage the poor from seeing a doctor.

On one hand we are warned about the alarming increase in obesity and diabetes, on the other we have the assistant minister for health, at the behest of her junk food lobbyist chief of staff, taking down a healthy food website.

Senator Nash insisted the health star site be pulled down a day after it was published in Febuary on the grounds it was published in error, despite freedom of information documents showing the minister was warned it would be published, and the states committing to spend $11 million on it.

In June, a watered down version of the site was reinstated, with the voluntary introduction period extended to five years from two and companies allowed to use the star ratings in conjunction with the industry’s daily intake guide. They also decided to continue voluntary pregnancy warning labels on alcohol, despite poor uptake by mixed drinks and so-called alcopops. Michael Thorn, the chief executive of the Foundation for Alcohol Research & Education, said it was “disgraceful” and put “booze before babies”.

“The alcohol industry will be celebrating that they have been able to successfully avoid introducing a warning label on their products for almost two decades,” he said.

One of the first steps of the minister for social services, Kevin Andrews, was to wind back gambling reform laws despite recommendations made by the Productivity Commission in its 2010 report into Australia’s gambling industry and the Victorian coroner’s report linking 128 suicides in that state directly to gambling..

This is the man who, along with our employment minister (he of breast cancer/abortion link fame), wants to see young unemployed without any income for 6 months of the year, and for the disabled to get out there and get one of those thousands of jobs that are just waiting for them if only they weren’t such bludgers. He also wants to lower the indexation rate of pensions which will cause the gap in standard of living to widen. All this while cutting $44 million from the capital works program of the National Partnership on Homelessness.

We have an environment minister who wants to cut down Tasmanian old growth forests and expand coal ports and dump sediment on the reef. He has wound back environmental protection laws and the right to appeal and gone on a spree of approving record amounts of fossil fuel production. At the same time, he has overseen the destruction of the renewable energy industry. They don’t even send him to world conferences on climate change because, after all, what could he say other than sorry.

Not content with these overt attacks on the environment, the government has quietly initiated a low key, unscheduled review into Australia’s national appliance energy efficiency standards. The only formal explanation offered to date is in the Energy “Anti-” Green Paper, which refers to “opportunities to reduce the red-tape burden on businesses”.

At least they were honest when our communications minister was appointed to “destroy the NBN” and he has done a damn fine job of it. Despite Tony Abbott’s election speech claim that within 100 days “the NBN will have a new business plan to ensure that every household gains five times current broadband speeds – within three years and without digging up almost every street in Australia – for $60 billion less than Labor,” the truth has emerged.

We will be left with a sub-optimal network, a mishmash of technologies, at a time when the world is increasingly going fibre. It will end up taking nearly as long and costing nearly as much as the all-fibre network it is replacing. The industry – and many around Turnbull – is increasingly realising this. But Turnbull will not budge.

Australia is the loser – all because of one man’s pride.

Scott Morrison, our immigration minister, is about as welcoming as a firing squad. He is like Hymie from Get Smart in his robotic determination to stop the boats at any cost. That goal apparently absolves him from any form of scrutiny, criticism, or human decency. He has a blank cheque and not one cent of it will be used to help refugees.

Despite our growing unemployment, he is also front and centre in providing Gina with her 457 visa workers – no rights, no entitlements, and if they complain they get deported.

Our minister for trade is working in secret, getting signatures on free trade agreements at any cost – it’s the announcement before the end of the year that’s important, not pesky details about tariffs and the fact that we no longer have the right to make our own laws without getting sued by global corporations.

Our attorney-general, the highest legal appointment in the land, thinks defending bigots is a priority. When faced with illegal actions by the government, steal the evidence, threaten journalists with gaol time and funding cuts, and introduce laws which remove official accountability. And while you’re at it, let’s bug the entire nation and make people prove themselves innocent. Even if they haven’t done anything wrong I am sure they have had evil thoughts.

Barnaby was last seen trying to hasten the demise of a few endangered species that are standing in the way of his dams.

Warren Truss is run off his feet planning roads, roads and more roads. Luckily they dumped that idea about releasing cost benefit analyses for any expenditure over $100 million. Thank god we got rid of that pesky head of Infrastructure Australia so we could get someone who understands our idea of what ‘independent body’ means. If the people want public transport they can build it themselves.

And how’s our girl doing? She’s looking tired to me. Making a case for a seat on the Human Rights Council whilst torturing refugees, or being sent in to bat at the world leaders’ conference on climate changed armed with nothing other than a rain forest conference, must shake even asbestos Julie’s steely resolve. The Armani suits and death stare can only get you so far. When in doubt, flirt.

I know you would like a mention Jamie Briggs but for the life of me, the only thing that comes to mind is your fawning introductions for our ‘Infrastructure Prime Minister’….

”To introduce our Tony, is what I’m here to do, and it really makes me happy to introduce to you…the indescribable, the incompatible, the unadorable….. Prrrriiiiimmme Minister!”

How to pay for a war

October 10, 2014
Written by: Kaye Lee
34 Replies

The Treasurer said if Mr Shorten was “honest” about his promise of bi-partisan support for Australia’s mission in Iraq, he would pass budget measures currently stalled in Parliament. Is he suggesting that sick people, pensioners, students and the unemployed should fund the war?

I have a suggestion.

When Joe Hockey produced his first fiscal statement in December last year, the deficit over the forward estimates had grown from $54.6 billion in August’s PEFO to $123 billion.

Part of this was due to Joe spending an extra $11 billion in his first 100 days as Treasurer, the most significant payment being the unasked for $8.8 billion gift to the RBA.

But the greatest increases to the deficit (and future debt) came from just changing forecasts. Hockey told us that Labor’s predicitions were unrealistically optimistic, despite the independent PEFO coming up with the same figures.

In almost every parameter, Hockey lowered PEFO forecasts, often dramatically, for the performance of the Australian economy . He insisted on the worst possible forecasts in order to exaggerate the “mess” he inherited.

Real GDP forecasts from PEFO were 2.5% and 3%, written down in MYEFO to 2.5% and 2.5% for the years 2013-14 and 2014-15.

The quarterly national accounts figures show the trend annual real GDP growth of 3.2% which is right on the 25-year average and significantly higher than predicted in either PEFO or MYEFO.

The IMF expects the Australian economy to grow by 2.8 per cent in 2014 and 2.9 per cent in 2015.

As for nominal GDP, PEFO predicted 3.75% and 4.5% – Hockey’s MYEFO 3.5% and 3.5%.

He decreased nominal GDP forecasts to their lowest level since the global financial crisis. This has a massive impact on revenues, which are very sensitive to changes in nominal GDP growth. This had the effect of reducing projected revenue over the forward estimates to $51 billion less than projected in PEFO.

In fact our annual nominal GDP rose by 4%. This is less than the 25-year average of 6.1% but once again, significantly higher than predicted by Hockey and even higher than PEFO.

Joe’s predictions about construction were even worse.

In MYEFO, housing construction growth was reduced to only 3% rather than 5% as forecast in PEFO.

Private dwelling investment actually increased 3.2% in the June quarter and 9.5% in the past year, the strongest pace of growth recorded in the Housing Industry Association Performance of Construction Index nine-year history.

As these few examples have shown, and as was muttered at the time (or shouted loudly by some of us), Hockey’s predictions were unnecessarily pessimistic in an obvious attempt to artificially create the debt and deficit disaster you have when you aren’t having a debt and deficit disaster.

Change a couple of assumptions and hey presto, we’re rolling in money. Bombs away.

Speaking of which, did you hear that the ADF just threw away $400 million worth of missiles that don’t fit their new planes?

You wanna talk waste, start with a group who plan that badly.

Chris Bowen misses an opportunity.

September 12, 2014
Written by: Kaye Lee
25 Replies

Yesterday Chris Bowen addressed the National Press Club to announce a Labor initiative to have the independent Parliamentary Budget Office prepare the forecasts to be used in government budget and fiscal statements to allow for greater transparency, accountability and rigour.

He started well by talking about the Charter of Budget Honesty and how Joe Hockey has manipulated the figures to inflate the debt and deficit. He mentioned Hockey’s decision to give $8.8 billion to the RBA which was designed to maximise the deficit, attribute it to Labor, whilst hoping for increased dividends in the future. He also mentioned the effect of Hockey’s manipulation of assumptions about key projections like unemployment, inflation, terms of trade, and GDP growth.

Bowen briefly ran over the comparison of PEFO projections with MYEFO – the former being prepared independently by the secretaries of Treasury and Finance, the latter being a propaganda sheet prepared by Hockey and Corman.

I was optimistic for once. This is exactly what needs to be highlighted in the media because it is what this government is basing all its rhetoric on. The attack on the ‘leaners’ is necessary to avoid saddling our children with an unpayable debt. Apparently we don’t mind burdening them with an unpayable personal debt to pay for their tertiary education but we can’t have public debt because…ummm…we are the knights of No and we want a surplus.

But it went downhill from there.

Instead of continuing in this vein, Chris Bowen then went to great lengths to explain that this was not a criticism of Treasury for whom he has the highest regard. He backed away from direct criticism of Hockey’s lies, concentrating on what the PBO would do and who they would collaborate with. This was what stuck in people’s minds. The introductory part of the speech, by far the most important aspect, was forgotten and not one question by the ‘journalists’ afterwards related to Hockey’s deceit.

Straight afterwards on ABC24, Lyndall Curtis interviewed Matthias Corman who had already been out that morning pre-empting Bowen’s speech. In his usual fashion, regardless of what he was asked, Corman repeated his preprepared lines like a doll having the string in its back pulled. “Layboor’s debt and deficit disaster leaving us with $123 billion in deficits, debt spiralling to $667 billion, and no credible path back to surplus.” Despite Chris Bowen’s introduction, Curtis, like all other journalists, allowed this to pass without question.

So there we were, back where we started with Corman’s mantra ringing in our ears.

Bowen’s answers to the questions that were asked was entirely inadequate. Having admitted there was a budget problem, Bowen was asked how Labor intended to address it. His response – “I’m not going to reveal our policies today. We are in the process of carefully developing them and rest assured you will all know them well before the next election and they will be fully costed.” What a fizzer. Where was the vision for the future? Where was the promise of a better way? Where were the ideas even if the detail was still to be determined?

When asked about negative gearing, Chris nearly got a hernia twisting away from the question and talking instead about housing affordability whilst making it clear that he was not suggesting specific changes to taxation. When pressed further about the very low numbers of first home buyers, he waffled on unconvincingly about stamp duty and construction.

The speech was the wrong way around. He should have started with the changes he wanted to make with the PBO and then outlined why he wanted those changes by listing the duplicity engaged in in the preparation of MYEFO.

Just for the record:

PEFO gives independent predictions using Labor policies. MYEFO gives Hockey’s assessment using Coalition policies.

PEFO shows a cumulative deficit of $54.6 billion over the forward estimates with a predicted surplus of $4.2 billion in 2016-17.

MYEFO shows a cumulative deficit of $122.7 billion with no surplus predicted over the forward estimates.

PEFO states, in 2013-14, net debt for the Australian Government general government sector is estimated to be $184.0 billion (11.7 per cent of GDP) and is projected to return to zero in 2023-24.

Hockey’s MYEFO predicts, nay BLARES, a debt of $667 billion. This figure is quoted ad nauseum every time you press the button on Matthias Corman’s belly. This is a projection of the GROSS debt in a DECADE under COALITION policies.

Let me make that absolutely crystal clear…this is a projection of the future with the Coalition’s decisions to axe the carbon tax which, according to MYEFO, “will reduce receipts by $6.3 billion over the forward estimates period” and the repeal of the minerals resource rent tax which “reduces receipts by $3.4 billion over the forward estimates period”. Add in the decisions to repeal the changes to the FBT and superannuation taxation and to gift $8.8 billion to the RBA, and also the payment to Rupert Murdoch of $882 million from the tax department, as well as the PPL that won’t go away and billions for Direct Inaction, and I would contend that Hockey and Corman OWN that projected debt. Increased spending on defence, searching for missing planes, attending memorial services whenever and wherever you can…these are all discretionary decisions made by this government.

Gross debt was approx. $280 billion when the Coalition took over. It is now $337.686 billion. Since September 30 2013, they have been borrowing over $157 million extra a day.

This article quotes the numbers presented in recent fiscal documents. I wish Chris Bowen had rammed it home a bit harder because Joe is setting us up to say “look how much I have saved” when the numbers tell a different story.

Lawmakers or lawbreakers?

September 8, 2014
Written by: Kaye Lee
27 Replies

The Readers Digest list of the 50 most trusted professions in Australia ranks lawyers at 39 and politicians at 49 just scraping in in front of door-to-door salespeople and two places behind call centre staff.

Considering these are the people who make, and prosecute, our laws, this is a sad indictment.

The record of the Abbott government ministers with regard to the law makes one wonder if they may just consider themselves above it all.

Assistant Treasurer Arthur Sinodinis is continuing to be mentioned at ICAC. Not only was he involved in shady dealings when at Australian Water Holdings, he is now implicated in emails (that his lawyers tried to have suppressed) from chief fund-raiser of the NSW Liberal Party Paul Nicolaou to Peta Credlin. As Sinodinis was Finance Director (2009 to 2011) and President (since 2011) for the NSW branch of the Liberal Party, it is hard to believe he knew nothing of the laundering of donations through the Canberra-based Free Enterprise Foundation.

Credlin and Loughnane appear to be in on the act, and Bronwyn Bishop and Tony Abbott have also been named, the former for redirecting funding through her Dame Pattie Menzies Foundation Trust and the latter for his association with Lindsay Partridge the MD of Brickworks who were advocating for the repeal of the carbon tax.

In May, the SMH published an article stating that:

“Treasurer Joe Hockey is offering privileged access to a select group including business people and industry lobbyists in return for tens of thousands of dollars in donations to the Liberal Party via a secretive fund-raising body whose activities are not fully disclosed to election funding authorities.

The Independent Commission Against Corruption is probing Liberal fund-raising bodies such as the Millennium Forum and questioning their influence on political favours in NSW.

Mr Hockey offers access to one of the country’s highest political offices in return for annual payments.

The donors are members of the North Sydney Forum, a campaign fundraising body run by Mr Hockey’s North Sydney Federal Electoral Conference (FEC). In return for annual fees of up to $22,000, members are rewarded with “VIP” meetings with Mr Hockey, often in private boardrooms.”

Members of the forum include National Australia Bank as well as the influential Financial Services Council, whose chief executive is former NSW Liberal leader John Brogden. Both these groups have benefitted from the changes to the Future of Financial Advice (FOFA) laws.

The chairman of the North Sydney Forum is John Hart, who is also the chief executive of Restaurant and Catering Australia – a hospitality industry lobby group whose members stand to benefit from a government-ordered Productivity Commission review of the Fair Work Act that is expected to examine the issue of penalty rates.

Mr Hart also sits on Prime Minister Tony Abbott’s Business Advisory Council.

When asked if there should be a federal ICAC, Mr Abbott said that he thought that Canberra had a “pretty clean polity”.

Despite accepting huge donations from bodies with obvious vested interests and loudly articulated demands – mining companies, property developers, financial institutions, hotel and gambling bodies, hospitality industry – Tony Abbott said:

“The thing is that we’re going to keep the lobbyists out [of politics]. And the problem that ICAC is exposing is a problem of lobbying, essentially its influence peddling . . . and we’re going to make sure that that has no place whatsoever federally.”

Last night’s edition of 60 minutes showed Mal Brough, by his own admission, directed the stealing of a copy of Peter Slipper’s diary. James Ashby also stated he was offered employment and legal costs by Christopher Pyne who has always denied any knowledge or involvement. And now, boy wonder Wyatt Roy is dragged into the fray. Somebody is/has been fibbing.

It would be very interesting to know who filed the complaint with the Australian Federal Police after Mal Brough went through Slipper’s diary and when the complaint was filed. There has been some suggestion that is was ex-defender of bigots, Attorney-General George Brandis.

When faced with action in the International Court over Alexander Downer’s bugging of the East Timor Parliamentary offices to gain confidential trade information for a subsequent employer, Brandis reacted by raiding the offices of the lawyer for East Timor, confiscating the evidence and the passport of the key witness.

If laws get in the way, bypass them or abolish them.

In June, the court upheld a challenge to the National School Chaplaincy Program, saying providing funding directly to chaplaincy organisations was constitutionally invalid. To get around that, the federal government will give a quarter of a billion to the states, insisting they must employ only religious chaplains.

Despite 72 per cent of Australians wanting same-sex marriage legalised, one of Brandis’ first acts was to challenge, and overturn, the ACT’s recently passed same-sex marriage laws. Why? Because he could is all I can come up with.

I am sure Corey Bernardi and Kevin Andrews were demanding this ‘depravity’ be abolished.

A poll in 2009 showed that 85 per cent of the country is in favour of voluntary euthanasia but that will never happen while Kevin Andrews has a driving seat in the Star Chamber.

In 1997, Kevin Andrews and Eric Abetz were members of the Coalition’s fundamentalist Christian faction, the Lyons Forum, who were successful in overturning the Northern Territory’s historic voluntary euthanasia law.

Deputy Leader of the Liberal Party, the recently decorated compassionate Minister for Foreign Affairs, Julie Bishop also has an affinity with the law. Before we were paying for her Armani suits she was busy representing CSR (amongst other “dodgy” corporate clients) famously asking the court “why workers should be entitled to jump court queues just because they were dying.”

Our Environment Minister Greg Hunt has overseen the rollback of environmental protection laws to facilitate his approval of coal mining.

The Federal Government’s handover of environmental approval powers to the states for development projects will wind back 30 years of legal protection for the environment and put at risk Australia’s World Heritage areas such as the Great Barrier Reef, Kakadu and the Tasmanian forests.

At the same time, state governments are seeking to ‘fast track’ major developments, such as coal mine and coal seam gas projects, reducing public participation and removing legal rights of local communities to mount legal challenges.

This is a crime that will certainly saddle our children with perhaps insurmountable problems.

And in perhaps the most heinous example of disregard for the law, morality, justice and humanity, the International Criminal Court (ICC) in The Hague is currently considering a submission calling for an investigation into Australia’s treatment of asylum seekers. The submission was officially accepted by the ICC on May 19, 2014, and it names Scott Morrison and Tony Abbott. Similar complaints have been lodged with the United Nations. Let’s hope they can compel our government to accept their legal obligations even if they are bereft of ethics.

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Never-ending story

September 4, 2014
Written by: Kaye Lee
9 Replies

In April I wrote an article about the Coalition’s history on superannuation. This is an updated version. Keeping up with their ever-changing promises is turning into quite a saga.

1972

Compulsory national superannuation was initially proposed as part of the 1972 Whitlam initiatives but up until the 1980s superannuation was solely the privilege of predominantly male professions, clustered in the public sector or available after a long qualifying period in the private sector.

1985

In 1985 then Leader of the Opposition, John Howard, said this:

“That superannuation deal, which represents all that is rotten with industrial relations in Australia, shows the government and the trade union movement in Australia not only playing the employers of Australia for mugs but it is also playing the Arbitration Commission for mugs”.

Howard was commenting on the deal between the government and the ACTU which saw the trade union movement forfeit a claim to 3% productivity improvement as wages to instead be paid in compulsory superannuation – endorsed by the Arbitration Commission and managed by superannuation funds with equal representation of the unions in the industry and the employers.

The Coalition has steadfastly opposed every increase in compulsory superannuation since that time, whether it be from 3% to 6%, or the 6% to the current 9.25%.

1995

In the 1995 budget, Ralph Willis unveiled a scheduled increase in compulsory super from 9% to 12% and eventually to 15%. It was to be one of the Keating government’s major legacy reforms.

1996

In its superannuation policy for the 1996 election, Super for all, the Coalition, which had hitherto been implacably opposed to Labor’s policies, promised it:

•Will provide in full the funds earmarked in the 1995 — 96 Budget to match compulsory employee contributions according to the proposed schedule;

•Will deliver this government contribution into superannuation or like savings;

•Reserves the right to vary the mechanism for delivering this contribution so as to provide the most effective and equitable delivery of the funds.

1997

So why don’t we have 15% superannuation now? Because John Howard and Peter Costello nixed it in the 1996 budget barely six months after it released its policy, insisting it was too expensive. They didn’t “vary the mechanism” so much as halted it.

2007

Significant changes were also made to superannuation policy in 2007. The majority of workers could now withdraw their superannuation tax-free upon reaching the age of 60. Most self-employed can claim their superannuation contributions as a tax deduction. In addition, semi-retired people can continue to work part-time, and use part of their tax-free superannuation to top up their pay.

Despite the relatively generous tax treatment of capital gains, the new superannuation tax treatment led to the selling off of some assets, particularly rental housing, as people sought to take advantage of the opportunity to add funds to their superannuation accounts and claim them back later tax-free.

People were allowed to transfer up to A$1 million into their superannuation accounts before the June 30, 2007, after which an annual maximum of A$150,000 of after-tax contributions could be made. The effect of this change in the rules was enormous. In the June quarter of 2007, A$22.4 billion was transferred to superannuation accounts by individuals. This compares with A$7.4 billion in the June quarter of 2006. June 2007 was the first time in Australia that member contributions exceeded employer contributions.

2010

The Coalition’s superannuation policy has drawn mixed reviews, with several major industry bodies expressing disappointment at the policy for being unsubstantial.

The Association of Superannuation Funds of Australia (ASFA), the Australian Institute of Superannuation Trustees (AIST) and the Financial Services Council (FSC) said in a joint statement that a failure to increase the superannuation guarantee (SG) to 12 percent, the failure to raise the concessional caps for individuals over 50 and the failure to provide a super tax contribution rebate for low-income earners would adversely impact Australian workers.

ASFA chief executive Pauline Vamos said that the majority of Australian voters would be disappointed that the Coalition’s only plan for superannuation was the promise of more reviews and delays.

AIST chief executive Fiona Reynolds said: “Australian voters are entitled to expect more than a policy document that has no concrete plans or even fresh ideas on how to address retirement income adequacy and the challenge of Australia’s ageing population.”

2011

OPPOSITION leader Tony Abbott has pointedly put down Victorian Liberal MP Kelly O’Dwyer after she questioned his controversial decision to keep Labor’s higher superannuation guarantee if a Coalition government inherits it.

Ms O’Dwyer asked at yesterday’s party room meeting about the process by which the Coalition’s previous position was reversed – saying it was her understanding such issues should go to the party room.

Mr Abbott said the party room had the right to change policy at any time. But there was no rule – and there should be no expectation – that every policy decision be brought to the party room.

“Mr Abbott, who several times made it clear he did not want to talk about the backflip, said the Coalition would have more to say on superannuation later, but repeated that it would not rescind the higher guarantee.”

Feb 2013

JOURNALIST:

So you would cut all those initiatives?

JOE HOCKEY:

Absolutely, you can’t afford them.

So there it was in black and white – the Coalition was cutting the increase in the super guarantee.

Except, apparently not so: a couple of hours later, Hockey was complaining on Twitter about being misrepresented. “What an MRRT debacle… Despite Govt’s failures we remain committed to not rescinding the increase in compulsory superannuation from 9-12%.” Hockey tweeted. After the Nine Network had accurately reported his remarks, he followed it up with:

Would be nice if Nine News had checked the facts…Coalition remains committed to keeping increase in compulsory superannuation from 9-12%.

Crikey understands Tony Abbott’s office moved immediately after Hockey’s doorstop to indicate there was no change in the Coalition’s support for the move from 9-12%

May 2013

Tony Abbott’s plan to delay the compulsory superannuation guarantee increase for two years and do away with top-ups for low income earners sets the tone for the Coalition’s policy on retirement savings to be announced in coming months.

The Liberal Party’s superannuation policy is likely to encourage individuals to make more voluntary contributions while scaling back government-directed super contributions.

The Coalition seems to be struggling with the concept of superannuation. The Coalition has lost a lot of their super knowledge over recent years with the retirement of many senior MPs, including Peter Costello, who was the architect of the 2007 changes that brought in tax-free super for over-60s, introduced caps on non-concessional contributions, reduced the caps on concessional contributions, and removed limits on the amount of super that you could withdraw at concessional rates. They have promised not to make any unexpected negative changes to super, but hey, a few weeks after making that promise, they announced they were freezing the Superannuation Guarantee increase for 2 years.

November 2013

Labor went to the election promising a 15 per cent tax on superannuation pension earnings over $100,000.

Treasurer Joe Hockey said on Wednesday the policy was too complex and it would be scrapped.

The Treasurer has also decided to cut superannuation co-contributions for low income earners

According to the chief executive of Industry Super Australia, David Whiteley, this would result in 3.6 million Australians on low incomes being out of pocket $500 a year, while just 16,000 of the nation’s top earners will benefit from the scrapping of the 15 per cent tax.

May 2014

Mr Hockey said the discussion on what age people should be allowed to access superannuation had begun inside the Coalition.

When asked if raising the superannuation access age was being considered, Mr Abbott said the government was keeping its commitments regarding superannuation.

”We went into the election saying that apart from a couple of very small already announced changes we weren’t proposing to make any changes to superannuation in this term of Parliament,” he told reporters in Canberra.

”We think that there have been lots and lots of changes to superannuation over the years. Some which we were enthusiastic about, some which we were unenthusiastic about, a period of stability in respect of superannuation is right and proper and there won’t be any changes in this term of Parliament.”

September 2014

Under a deal negotiated with the Palmer United party to repeal the mining tax, employer superannuation contributions will be frozen at 9.5 per cent until 2021 when they increase to 10 per cent.

After that, contributions will increase by 0.5 per cent annually until they reach 12 per cent.

As a result, Labor claims that a 25-year-old Australian earning $55,000 a year will be more than $9000 worse off by 2025. Industry sources say the impact over a 40-year working life could be as high as $100,000, taking into account compound interest.

With the rise of influence of the IPA within our current government’s policy making, this article by John Roskam from 2012 should sound warning bells to us all.

“Compulsory superannuation offends practically every principle of what should be Liberal Party philosophy. If an Abbott government does keep compulsory superannuation it must, at a minimum, make drastic changes.”

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Tag Archives: Joe Hockey

Plutocrats and Pitchforks

As Investment Advisers, The Liberals Make Alan Bond Look Good!

Believe Me, I Know The Difference Between Satire And Reality!

Regaining goodwill

That was then…this is now

Message of the day

It’s all about the jobs, bout the jobs, no trouble

Actions speak louder than words

Upside down downunder

The case for a Federal ICAC

Do ya do ya do ya really care?

How to pay for a war

Chris Bowen misses an opportunity.

Lawmakers or lawbreakers?

Never-ending story