Read The Times Australia

Daily Bulletin

If you haven't got the numbers, Scott, could you please just get them?

  • Written by: Michelle Grattan, Professorial Fellow, University of Canberra

The question is totally reasonable, and deserves an answer. But when Malcolm Turnbull and Scott Morrison were asked on Tuesday for estimates of the growth and jobs dividends from the company tax cuts passed by the Senate last week, the response was bluster, not numbers.

Morrison was particularly egregious.

“The government doesn’t need to be convinced about the need to give small and medium-sized businesses a tax cut. The Labor Party needs to be convinced about that,” he started, before adding that Labor had been putting around the press gallery the need for econometric modelling.

Whatever the Opposition may or may not put around, it’s a pretty obvious inquiry. After all, it was the government that said its 10-year $48 billion company tax plan would add an estimated 1% to growth, albeit after a very long time. Morrison repeated the number on Tuesday.

We know it was the tax cut for big business that was most important for growth, and that part has not been passed by the Senate. This package that was ticked off applies to businesses with turnovers up to $50 million and is worth $24 billion over the period, making a new calculation of its growth effect very relevant.

It was also the government that produced modelling last year on boosting the GST, using it to conclude such a change would not be worthwhile.

But modelling, it seems, is only important when the government wants it to be.

Otherwise, Morrison advises, just go to the local. “If you go down the pub and you talk to small business people, they’re not talking about econometric models. What they’re talking about is how they’re going to grow their businesses,” he said.

The small business people were “not looking for econometric models. They’re looking for governments to take action, cut their taxes, give them access to the instant asset write-off.

"The Turnbull government understands how business works. We focus on the things that we know make a difference because our life’s experience, our background in businesses, particularly the Prime Minister but so many in our team, we know that is the right thing to do.”

Finally, he was pressed into saying the modelling was done on the “entire” tax package. In other words, apparently the government has not a precise answer to produce. Presumably before the budget Treasury will be asked to model the package the Senate has passed. Or maybe not, if the results could be inconvenient.

Now we all know the limitations of modelling – the outputs depend on assumptions fed in and so its results can be rough and ready.

But the government can’t parade modelling one moment and then, when it is unable to produce it, say “just apply the pub test”. Indeed Morrison’s suggestion brought back thoughts of Joe Hockey’s one liners (and those on Labor’s “Bill bus”, which has began another tour in Queensland, had predictable fun with it).

The government’s mantra is “jobs and growth”. That was the whole basis of its election campaign, and it doesn’t have much meaning unless you are dealing in hard evidence.

In his rhetoric Turnbull casts small business – which the Liberals look to as part of their core constituency - as the dynamo of the economy.

Addressing the Victorian Liberal Council at the weekend, Turnbull argued that small businesses were “the most enterprising, the most ready to invest, the most ready to innovate”.

Economist Saul Eslake describes this claim as “bollocks”, and ideology gone mad. He says small business is the least innovative sector of business.

His comments just underline the interest in what modelling would tell us about the likely effect of this recalibrated package of cuts, dissected into businesses of varying sizes.

Authors: Michelle Grattan, Professorial Fellow, University of Canberra

Read more http://theconversation.com/if-you-havent-got-the-numbers-scott-could-you-please-just-get-them-75723

Business News

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

How to Choose Removalists in Melbourne for a Smoother Move

Finding suitable removalists in Melbourne is easier when the decision is based on the actual require...

Market growth, trends and opportunities in Australian sports nutrition manufacturing

Protein powder used to belong to bodybuilding culture. These days a tub is as likely to sit on a s...

How a Flexible Coworking Workspace Can Help Glen Iris Professionals

Create a better boundary between home and work For many remote workers and independent professional...

Why Sydney's Older Timber Homes Are the Last to Show Visible Termite Damage

There is a common misconception about how termite damage becomes apparent. Most homeowners assume th...

What to Consider When Choosing Duct Cleaning Melbourne Services

When property owners search for Duct Cleaning Melbourne services, the first consideration should b...

Why Does a Toothache Suddenly Turn Constant?

For weeks the tooth only complained now and then. A twinge with ice cream, a brief ache after a swee...

Best Jewellers in Brisbane to Discover for Custom Engagement Rings

Choosing a jeweller for a custom engagement ring is an important decision. The process involves mo...

How fast can you charge an EV at home? Charger speeds explained

Ask new EV owners what worried them before buying and charging time comes up early. A petrol tank fi...

Crossing Several European Borders? How to Keep Your Phone Working the Whole Trip

A multi-country trip through Europe can cross three borders in a day. Take the coach from Split to...