Read The Times Australia

Daily Bulletin

Grattan on Friday: Scott Morrison struggles to stay afloat as he treads water on tax

  • Written by: The Conversation Contributor

If Scott Morrison ever watched Joe Hockey and thought “how much better I could do that”, he’s getting a rough lesson in humility.

First the Treasurer ran out in front, pushing for a big bang tax package based on an increased GST. It ended badly, with a displeased Malcolm Turnbull. This week found Morrison at the National Press Club reining in expectations about the tax cuts to be delivered in the May budget – and then mauled in interviews for having had nothing new to say.

Given the circumstances, Morrison actually put in a reasonably solid Press Club performance. As Labor pointed out, when the gig was lined up he would have expected his speech to be preparing the way for his preferred option. By the time the day came, the air had gone out of the balloon - his task was to keep out of trouble, which he mostly did.

But in today’s voracious news cycle and after months of “conversation” about tax, an appearance without an announcement ensured he faced fire in the follow-up media.

Turnbull is relying on his popularity and style to help him through this policy-free period. In contrast, Opposition Leader Shorten, unstylish and unpopular, is seeking to make himself “policy Bill”, with Labor’s proposed tightening of negative gearing his most recent initiative.

It’s obvious that the opposition is now ahead of the Coalition in the tax policy release contest. Whether this ultimately matters will depend on what the government eventually unveils, in the budget and before it. That inevitably will transform the debate – to the government’s benefit or its disadvantage.

Morrison on Thursday flagged an early statement on superannuation, saying the government hoped to “come to a landing point very, very soon” and that both he and Turnbull would like to make an announcement “sooner rather than later”. Superannuation is as sensitive an area as negative gearing so there will be some nerves on the Coalition backbench about where this “landing” will be.

Meantime the government is finding it hard to handle, in public terms, its tax vacuum. Slip ups will occur, as when cabinet minister Michaelia Cash on Monday left the GST rise on the table. Turnbull, who had already killed it, next morning had to put the matter absolutely beyond doubt, declaring “the government will not be taking a proposal to increase the GST to the election”.

Even after his retreat, it is tricky for Morrison to position himself safely until he can be confident precisely where the broad tax policy will settle.

Now that the tax reform challenge has to be reframed around a more modest solution, differences are on show about the nature of the problem.

Morrison is fixated on the threats posed by bracket creep, repeatedly denouncing it as a “growth killer” and a “job killer”. On Wednesday he made it clear that addressing bracket creep was still his priority for whatever cuts are affordable. But Finance Minister Mathias Cormann said pointedly on Thursday that with wage inflation comparatively low, “while the problem [of bracket creep] is there, it is not there to the same extent as it might have been in the past”.

The government will continue to attract negative commentary until it has something to say. But it can’t afford to be saying too much until it has finished policies, or it will just get itself into the sort of trouble that it did over the GST option.

By April 1, when the Australian Council of Governments is due to meet, it will need some answers for the premiers, whose moods must be pretty black. Two of them, NSW’s Mike Baird and South Australia’s Jay Weatherill, who canvassed packages involving a higher GST, were left on a limb by the federal back off. And Turnbull and Morrison have been totally unsympathetic to the states' calls for more funds to pay for health and education. With the bigger GST off the table, there wouldn’t be the money anyway.

Apart from delivering the final axe-blow to the already dead GST rise and making some criticism of Labor’s negative gearing policy, Turnbull kept to the margins of the tax debate during the week, much of which he spent with new Nationals leader Barnaby Joyce touring Queensland, where their stops included Cairns, Townsville, Rockhampton, Mackay and Bundaberg.

On Turnbull’s suggestion, at Thursday’s swearing in of new ministers and those with changed portfolios Joyce was sworn as Deputy Prime Minister (DPM). The DPM role is not an official one so Joyce, who is keeping his old agriculture portfolio, would not normally have had a formal part in the Government House ceremony. No one can remember the last time a DPM was sworn into that position – Nationals sources think it could have been their legendary “Black Jack” McEwen. Joyce was pleased.

The tax debate might look like a bugger’s muddle but there were the beginnings of a Turnbull-Joyce bromance.

Authors: The Conversation Contributor

Read more http://theconversation.com/grattan-on-friday-scott-morrison-struggles-to-stay-afloat-as-he-treads-water-on-tax-54971

Business News

Is Your Brand Showing Up in AI Search? Most Melbourne Brands Aren't.

The New Front Door Nobody Told You About Something changed. Quietly. Without a press release. The way buyers find businesses in Australia has been rewired. Not replaced, rewired. Google isn't dead...

Daily Bulletin - avatar Daily Bulletin

How Australian Businesses Can Measure SEO ROI

SEO can feel vague when you are staring at a dashboard full of numbers that do not clearly connect to revenue. The key is to measure the right signals in the right order, then tie them back to outcome...

Daily Bulletin - avatar Daily Bulletin

How Commercial Roller Shutters Improve Site Security Without Slowing Operations

Security upgrades can be frustrating when they make everyday work harder. A door that takes too long to open, creates bottlenecks at shift change, or fails at the worst time can turn “better protectio...

Daily Bulletin - avatar Daily Bulletin

Why a Document Destruction Service Still Matters for Modern Businesses

Businesses generate large volumes of information every day, from staff records and contracts to invoices, reports and customer files. While attention often focuses on how documents are stored, the way...

Daily Bulletin - avatar Daily Bulletin

Bicycle Rack Safety and Space-Smart Storage

Bike storage problems usually show up as small annoyances first: tangled handlebars, scratched frames, and bikes that topple when you pull one out. Over time, those issues become safety risks, especia...

Daily Bulletin - avatar Daily Bulletin

How to Tell if a Childcare Centre Is a Good Fit for Your Child

Choosing childcare can feel like you’re making a huge decision with limited information. Tours are short, centres are often on their best behaviour, and your child might act differently in a new space...

Daily Bulletin - avatar Daily Bulletin

Car Import Timeline: What Usually Happens at Each Stage

Importing a car into Australia can feel confusing because multiple agencies and checkpoints are involved, and the timeline is shaped as much by paperwork quality as it is by shipping speed. The most u...

Daily Bulletin - avatar Daily Bulletin

Portable Toilet Hygiene Standards Explained: Clean vs Sanitised vs Disinfected

In portable toilet servicing, the words clean, sanitised, and disinfected often get used as if they mean the same thing. They don’t. And that difference matters because a unit can look tidy and still ...

Daily Bulletin - avatar Daily Bulletin

Options Available When a Company Faces Financial Distress

Financial distress can develop gradually or arrive suddenly, and when it does, the decisions made in the early stages often determine what options remain available later. Directors who act promptly ...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...

How A Diploma Of Project Management Builds Practical Skills For Modern Work Environments

Developing the ability to plan, execute, and deliver outcomes efficiently is a key requirement in to...

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...

What to Ask a Wedding Photographer Before You Book

Booking a wedding photographer can feel deceptively simple: you like the photos, you like the vibe...

Why Stress Relief For Dogs Is Essential For Emotional Balance And Long-Term Wellbeing

Managing emotional health is just as important as physical care when it comes to pets, which is why ...

Australia’s Best Walking Trails and the Shoes You Need to Tackle Them

Australia is not short on spectacular walks. You can follow ocean cliffs in Victoria, cross ancien...

Why Pre-Purchase Building Inspections Are Essential Before Buying a Home in Australia

source Have you ever walked through an open home and started picturing your furniture, family d...