Thomas Walker on the Need for Rethinking Australian Economy

Thomas Walker, CEO of Think Forward, an economics think tank run by younger Australians, is at the forefront of the push for reform. In an op-ed piece published today, Walker argues that the time has come to rebalance Australia's economy, putting work and contributions above wealth accumulation. This approach used to be the promise at the heart of our economy – work hard and contribute, and you'll live a secure life with high-quality public education, healthcare, housing, and decent wages. But that's no longer the case; work and effort are no longer enough.

Walker points to the 1980s and 1990s, when Australia's leaders began to privatize public services, give tax breaks to investors, and introduce the capital gains tax discount to encourage private wealth accumulation. These policies have led to a situation where asset owners experience soaring asset values but face lower tax rates compared to earners.

### Australian Economy Off Track Since 1980s

The Australian economy has been off track since the 1980s and 1990s, when leaders turned their backs on the 'fair go' by privatizing public services and giving tax breaks to investors. The capital gains tax discount, introduced by John Howard, transferred public money to the already wealthy and led to a rise in property speculation and investing as the pathway to financial security. This shift away from the 'fair go' has left many Australians struggling to make ends meet.

According to ANU research, only half of 25- to 34-year-olds believe that hard work brings a better life in Australia today, down from 80 per cent in 2013. This shift in attitude is a seismic response to the changing economic landscape, where hard work is no longer enough to secure a decent life.

### Proposed Tax Reforms

Treasurer Jim Chalmers' proposed tax reforms aim to rebalance the scales by removing the capital gains tax discount and negative gearing. By doing so, he aims to reduce taxes on work further and invest in the things Australians need to build their lives, such as free tertiary education, public housing, and parental leave. In addition, Chalmers plans to reduce taxes on work further and invest in the things Australians need to build their lives.

Walker argues that taxing wealth properly, including the use of natural resources, would provide a more equitable foundation for the economy. This, he believes, would give everyone the freedom to learn, experiment, start a business, find a meaningful job, and feel that their contributions are truly rewarded.

### Key Facts

  • Only half of 25- to 34-year-olds believe that hard work brings a better life in Australia today, down from 80 per cent in 2013.
  • The Australian economy has been off track since the 1980s and 1990s when leaders turned their backs on the 'fair go'.
  • The capital gains tax discount was introduced by John Howard and has led to a rise in property speculation and investing as the pathway to financial security.
  • Treasurer Jim Chalmers plans to remove the capital gains tax discount and negative gearing.
  • Chalmers aims to reduce taxes on work further and invest in free tertiary education, public housing, and parental leave.