.

  • Written by Michelle Grattan, Professorial Fellow, University of Canberra
Prime Minister Scott Morrison will lay out economic policies "to get Australians off the economic sidelines and on the field again" on Monday. Dean Lewins/AAP

Scott Morrison will commit to getting consumers, business and investors “off the economic sidelines and on the field again” in his first major domestic speech of the new term.

Addressing a business audience in Perth on Monday, Morrison will set out the government’s economic priorities for the next few months, including delivering its tax plan when the new parliament meets, and “provoking the ‘animal spirits’” in the economy by removing regulatory and bureaucratic barriers to investment.

He will also foreshadow a new look at industrial relations reform while stressing that it must benefit both employers and employees.

Acknowledging the challenges and headwinds affecting the Australian economy, which registered low growth in the latest national accounts, Morrison will say political uncertainty in the election run up weighed on the confidence of consumers, businesses and investors. This saw them “sitting on the sidelines” until it was over.

“Our job post election is now very clear – to get Australians off the economic sidelines and on the field again.”

With shadow cabinet on Monday discussing the opposition’s position on the Coalition’s three-stage decade-long tax package, Morrison will seek to increase pressure on Labor to pass all stages, saying the plan doesn’t just have a strong political mandate but also “a compelling policy rationale”.

The first stage will boost consumption and be equivalent to at least two 25 basis point interest rate cuts, he says in his speech, released ahead of delivery.


Read more: Frydenberg declares tax package must be passed 'in its entirety'


Labor agrees with stage one but is yet to decide whether it will wave through the second and third stages, both due to start after the next election. It has been particularly critical of stage three, which delivers to the highest income earners. The government says it won’t split the bill, which will be introduced when the new parliament begins next week.

While some in Labor believe it should pass the whole package, others argue it is irresponsible to commit to tax cuts years out in uncertain times.

Shadow treasurer Jim Chalmers, interviewed on the ABC, reiterated on Sunday that Labor wanted to know how the third stage – worth $95 billion of the $158 billion package – was distributed through the various tax brackets. He said Labor’s highest priority was to get the first stage flowing through the economy, while the government’s highest priority seemed the third stage which didn’t come in for another five years.

But Morrison says in his speech: “It still baffles me why Labor can readily sign up to spending schemes that run for decades, yet cannot do the same to let Australians keep more of their own money.

"Under our changes, from 2024-25, 94% of Australians will pay a maximum marginal tax rate of no more than 30 cents in the dollar, compared to only 16% if stages two and three are not delivered.

"Or to put it another way, almost 80% of hard working Australians will keep more of what they earn following stages two and three of our tax plan.”


Read more: The Reserve Bank will cut rates again and again, until we lift spending and push up prices


Morrison says that to provoke the “animal spirits” in the economy, regulatory and bureaucratic barriers to business investment must be removed.

This requires “reducing regulatory barriers to growth and driving improvements in industrial relations that improve outcomes for both workers and businesses”.

“Congestion is not just on our roads and in our cities. We also need to bust regulatory congestion, removing obstacles to business investment,” he says, instancing the experience of the mining industry in Western Australia.

“In 1966, the late Sir Arvi Parbo took the Kambalda nickel mine near Kalgoorlie from discovery to operation in 18 months. By contrast, the Roy Hill iron ore mine took around 10 years to complete around 4,000 approvals. Delays to the project meant delays to over 5,000 construction jobs and 2,000 ongoing jobs.

"There is a clear need to improve approvals timeframes and reduce regulatory costs, but in many cases regulators are making things worse.

"Look at the WA Environment Protection Authority and the uncertainty it has created over new emissions requirements for the resources sector. Business will also make valid criticisms of many Commonwealth agencies and departments.”

Morrison is appointing his close confidant Ben Morton, from WA, who is Assistant Minister to the Prime Minister, to work with him, Treasurer Josh Frydenberg and other ministers “to tackle the full suite of barriers to investment in key industries and activities”.

The government will focus on regulatory reform “from the perspective of a business looking, say, to open a mine, commercialise a new biomedical innovation, or even start a home-based, family business.

"By focusing on regulation from the viewpoint of business, we will identify the regulations and bureaucratic processes that impose the largest costs on key sectors of the economy and the biggest hurdles to letting those investments flow.

"What are the barriers, blockages and bottlenecks? How do we get things moving?

"Step one is to get a picture of the regulatory anatomies that apply to key sectoral investments. Step two is to identify the blockages. Step three is to remove them, like cholesterol in the arteries.”


Read more: View from The Hill: To whack the CFMMEU, Morrison needs first to get the right stick


Morrison will highlight the need “to protect investment from the impact of militant unions” and reaffirm that the government plans to try to get through the new parliament its Ensuring Integrity bill, that stalled in the last term. This would strengthen its hand against militant unions, notably the CFMMEU.

Beyond this, Morrison will say he has asked the new Minister for Industrial Relations, Christian Porter “to take a fresh look at how the system is operating and where there may be impediments to shared gains for employers and employees.

"Any changes in this area must be evidence-based, protect the rights and entitlements of workers and have clear gains for the economy and for working Australians.”

Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

Authors: Michelle Grattan, Professorial Fellow, University of Canberra

Read more http://theconversation.com/morrison-wants-to-unleash-economys-animal-spirits-and-foreshadows-new-look-at-industrial-relations-119289

'An insult' – politicians sing the praises of the cashless welfare card, but those forced to use it disagree

The grey cashless debit card cannot be used at any alcohol or gambling outlet, nor used to withdraw cash. www.shutterstock.com“This is a bit controversial, we know that,” deputy prime mini...

Eve Vincent, Senior Lecturer, Macquarie University - avatar Eve Vincent, Senior Lecturer, Macquarie University

As pressure on Iran mounts, there is little room for quiet diplomacy to free detained Australians

Former Foreign Minister Julie Bishop has offered to help free three detained Australians in Iran, but the attacks on Saudi oil facilities have made the situation vastly more complicated. Stringer/EPAA...

Tony Walker, Adjunct Professor, School of Communications, La Trobe University - avatar Tony Walker, Adjunct Professor, School of Communications, La Trobe University

The gloves are off: 'predatory' climate deniers are a threat to our children

A child jumps from a rock outcrop into a lagoon in the low-lying Pacific island of Tuvalu. AAP/Mick TsikasIn this age of rapidly melting glaciers, terrifying megafires and ever more puissant hurricane...

Tim Flannery, Professorial fellow, Melbourne Sustainable Society Institute, University of Melbourne - avatar Tim Flannery, Professorial fellow, Melbourne Sustainable Society Institute, University of Melbourne

Civilization: The Way We Live Now – powerful, troubling photographs of a crowded planet and uncertain future

Cyril Porchet, Swiss born 1984, Untitled 2014 from the series Crowd, inkjet print 139.0 x 169.0 x 3.5 cm. © Cyril PorchetIn 1955, an enormous photographic exhibition, The Family of Man, challenge...

Sasha Grishin, Adjunct Professor of Art History, Australian National University - avatar Sasha Grishin, Adjunct Professor of Art History, Australian National University

Keeping the city cool isn't just about tree cover – it calls for a commons-based climate response

Where’s the shade? Trees are not an immediate or whole answer to keeping cool. Cameron Tonkinwise, Author providedThis story is part of Covering Climate Now, a global collaboration of more than ...

Abby Mellick Lopes, Senior Lecturer in Design, Western Sydney University - avatar Abby Mellick Lopes, Senior Lecturer in Design, Western Sydney University

Why it's time for New Zealanders to learn more about their own country's history

New Zealand is one of few places in the world where teaching the country's own history has not been compulsory. from www.shutterstock.com, CC BY-NDFrom 2022, New Zealand history will be taught at all ...

Michael Belgrave, Professor History, Massey University - avatar Michael Belgrave, Professor History, Massey University

Curious Kids: why are some twins identical and some not?

Identical twins look the same, are the same sex, share the same birthday and shares the same genes. www.shuttershock.com , CC BYIf you have a question you’d like an expert to answer, send it to...

Alison McEwen, Head of Discipline of Genetic Counselling, Graduate School of Health, University of Technology Sydney - avatar Alison McEwen, Head of Discipline of Genetic Counselling, Graduate School of Health, University of Technology Sydney

Suddenly, the world's biggest trade agreement won't allow corporations to sue governments

The 16 nations negotiating the Regional Comprehensive Economic Partnership account for almost half the world's population. Shutterstock/DatawrapperThe Regional Comprehensive Economic Partnership has b...

Pat Ranald, Research fellow, University of Sydney - avatar Pat Ranald, Research fellow, University of Sydney

Greens' challenge aptly described by Paddy Manning, but with no solutions in sight

Paddy Manning’s excellent account of the Australian Greens will not be the last word on Australia’s most successful third party, but will doubtless remain important and influential for man...

Marc Hudson, Researcher, University of Manchester - avatar Marc Hudson, Researcher, University of Manchester

Explainer: what happens when magnetic north and true north align?

Very rarely, depending on where you are in the world, your compass can actually point to true north. https://www.shutterstock.comAt some point in recent weeks, a once-in-a-lifetime event happened f...

Paul Wilkes, Senior Research Geophysicist, CSIRO - avatar Paul Wilkes, Senior Research Geophysicist, CSIRO

Politics with Michelle Grattan: Jim Chalmers on the need to change economic course

Shadow Treasurer Jim Chalmers says it’s time to change Australia’s economic course “in a responsible and affordable way which doesn’t jeopardise the surplus”. Chalmers p...

Michelle Grattan, Professorial Fellow, University of Canberra - avatar Michelle Grattan, Professorial Fellow, University of Canberra

Reality slippages and narcissistic stereotyping - watching Content, a TV show made for smart phones

Lucy spends much of her life living through her phone screen – what happens when we are let into this vantage point? Mia Forrest/ABCLucy (Charlotte Nicado) is a pink-haired millennial having a q...

Emma Maguire, Lecturer in English and Creative Writing, James Cook University - avatar Emma Maguire, Lecturer in English and Creative Writing, James Cook University

You can help track 4 billion bogong moths with your smartphone – and save pygmy possums from extinction

Healesville Sanctuary, Werribee Open Range ZooEach year, from September to mid-October, the tiny and very precious mountain pygmy-possums arise from their months of hibernation under the snow and beg...

Sally Sherwen, Director Wildlife Conservation and Science, Zoos Victoria, University of Melbourne - avatar Sally Sherwen, Director Wildlife Conservation and Science, Zoos Victoria, University of Melbourne

Is vigorous exercise safe during the third trimester of pregnancy?

Vigorous exercise is safe while pregnant, even in the final trimester. But if you don't feel up to it, lighter exercise is beneficial too. From shutterstock.comExpectant mothers receive an avalanche o...

Kassia Beetham, Exercise Physiology Lecturer, Australian Catholic University - avatar Kassia Beetham, Exercise Physiology Lecturer, Australian Catholic University

Climate change is the defining issue of our time – we're giving it the attention it deserves

The Conversation has joined more than 250 news outlets around the world to focus on climate change coverage. We provide 100% evidence-based coverage on climate change. Stay informed BY subscribing to...

Nicole Hasham, Section Editor: Energy + Environment - avatar Nicole Hasham, Section Editor: Energy + Environment

Australia to attend climate summit empty-handed despite UN pleas to ‘come with a plan'

The Port Kembla industrial area in NSW. Industry emissions can be cut by improving efficiency, shifting to electricity and closing old plants. Dean Lewins/AAPThis story is part of Covering Climate Now...

Frank Jotzo, Director, Centre for Climate and Energy Policy, Crawford School of Public Policy, Australian National University - avatar Frank Jotzo, Director, Centre for Climate and Energy Policy, Crawford School of Public Policy, Australian National University

'Climigration': when communities must move because of climate change

Flood damage in Bundaberg, Queensland, in 2013. Most communities are at some risk from extreme events, but repeated disasters raise the question of relocation. srv007/Flickr, CC BY-NCThis story is par...

Tony Matthews, Senior Lecturer in Urban and Environmental Planning, Griffith University - avatar Tony Matthews, Senior Lecturer in Urban and Environmental Planning, Griffith University

As Scott Morrison heads to Washington, the US-Australia alliance is unlikely to change

Wes Mountain/The Conversation, CC BY-NDPrime Minister Scott Morrison’s official visit to Washington this week carries some prestige. It is just the second “official visit” (includin...

David Smith, Senior Lecturer in American Politics and Foreign Policy, Academic Director of the US Studies Centre, University of Sydney - avatar David Smith, Senior Lecturer in American Politics and Foreign Policy, Academic Director of the US Studies Centre, University of Sydney

Apple's iPhone 11 Pro wants to take your laptop's job (and price tag)

What a week it has been in the Apple core. In recent days the tech giant has released a litany of products, including new phones, watches, tablets, and more. The big-ticket items are clearly the new ...

Andrew Maxwell, Senior Lecturer, University of Southern Queensland - avatar Andrew Maxwell, Senior Lecturer, University of Southern Queensland

Sick and Tired of Your Dead End Job? Try Teaching!

Tired of the same old grind at the office? Want an opportunity to impact lives both in your community and around the world? Do you love to travel and have new experiences? Teaching English is the perfect job for you! All you need is a willingness to ...

News Company - avatar News Company

The Impact of an Aging Population in Australia

There’s an issue on the horizon that Australia needs to prepare for. The portion of elderly citizens that make up the country’s overall population is increasing, and we might not have the infrastructure in place to support this. Australians h...

News Company - avatar News Company

LifeStyle

Picking The Right Crystal Yoni Egg: Tips And Instructions

When you are ready to pick your own crystal yoni egg, you need to decide what you will use it for...

Top 5 Tips for Paddleboarding In Whitewater

Paddleboarding can be relaxing as well as intense. If you occasionally want to do something differen...

3 Most Promising Career Occupations for Graduates in 2019

Studying in college is a great adventure which opens up lots of career opportunities. Yet, at times...

SCARmed Silicone Gel

AUSTRALIA LEADS WAY WITH ALL-NEW RAPID-DRYING SILICONE GEL WORKING WONDERS IN SCAR REDUCTION   ...