Cry Me A River, Slomo

06 April 2017

There is no greater sign of failure than Scott Morrison begging big Australian companies to do his job for him.
With Mr Morrisons Budget preparation beset by chaotic division and leaks, no one would be surprised if Mr Morrison asked todays audience for tips on what to put in the Budget.

Mr Morrison is clearly all out of ideas as he pursues the balance of the $50 billion in company tax cuts at a time when company profits are at record highs, while telling Australias lowest paid who are already struggling with record low wages growth that they need to accept cuts to penalty rates.

You know when Paul Keating and Peter Costello are unified on an issue on the Governments $50 billion big business handout not being part of a broader tax reform package youve got a big problem.
Meanwhile the economists of the big banks who stand to gain $7.4 billion in company tax cuts from the Governments package are now arguing that the tax cut will flow directly to investors. The CEOs and Chairs of Australias largest companies would not know whether to laugh or cry at Scott Morrisons latest pronouncement because Morrison has so badly mishandled his day job of managing the Australian economy and the tax reform debate.

On Mr Morrisons watch:

  • The economy is growing below trend;
  • The unemployment rate has increased and is now close to six per cent;
  • Underemployment is at record highs 1.1 million Australians wanting more work but are unable to find it;
  • There are less full-time jobs than there were a year ago;
  • And wages growth is at record lows at 1.9 per cent.

And Mr Morrison has a strong record on kite flying on tax reform over the last 18 months, where he has flagged:

  • An increase in the GST;
  • Broad-based income tax cuts;
  • Allowed the Prime Minister to go on a 48 hour frolic on imposing state income taxes, reversing almost 70 years of Commonwealth-State tax relations;
  • Talked about the excesses of negative gearing before taking reforms to negative gearing to Cabinet and getting rolled by the Minister for Immigration; and finally,
  • Hes championed the benefits of a $50 billion company tax cut for big business throughout the election and beyond but has only recently been able to confirm it will survive the upcoming Budget.

Instead of asking big Australian businesses for help on selling his failure, Mr Morrison should tell Australians what the economic benefits of the $24 billion in legislated company tax cuts are.