Labor roundtable timidity shows boldness is the only way ahead

The Economic Reform Roundtable aimed to build consensus on ways to improve productivity, enhance economic resilience and strengthen budget sustainability in the face of global uncertainty.

With so many influential Australians taking part, it should have been the vehicle for substantial reform. Instead, the Albanese government’s timidity held sway.

The biggest outcome seems to have been the announcement to curb the National Disability Insurance Scheme’s annual growth to between 5 and 6 per cent and bring the $46 billion scheme into line with Medicare and other programs by diverting children with autism or a developmental delay into a new program. The NDIS became part of the summit furniture when Treasurer Jim Chalmers told the roundtable the move was “perfect” timing.

Chalmers subsequently confirmed a checklist of some 30 areas – most, like the removal of red tape, had been known before discussions started – that will allow quick ministerial fixes, and revealed plans to levy road-user charges on EV drivers, revamp environmental protection laws to accelerate the development of houses, mines and renewable energy projects, and the better use of AI.

But tax reform remained the elephant in the room. Prime Minister Anthony Albanese refused to consider changing the GST. But in submissions, the Productivity Commission recommended changes and unions called for curbs on negative gearing, the capital gains discount and the use of family trusts. In reply, Chalmers stated the obvious, declaring that Australians paying income tax and younger people were not getting a fair deal, and he also raised the prospect of both income and company tax cuts later this term. However, he gave no indication if tax changes would be announced before the next election, saying it was a cabinet decision, not just his alone.

Many Australians would regard the gathering of such an influential group at the economic summit as the chance to do something really significant. Yet, the biggest policy change that the government seemed intent on selling this week were changes to the NDIS. Undoubtedly, they were a needed reform, but the government’s faint heart is more than a lost opportunity.

The thumping election win last May gave Labor unprecedented opportunity to introduce the sweeping reforms needed to confront global changes, yet the government seems gripped by stasis, with Chalmers pushing for change while Albanese resists rocking the boat.

A “steady as she goes” mindset in the Albanese government’s second term won’t cut it. The economy desperately needs a shake-up, and the looming financial crisis is not going away. A drifting business-as-usual Australia risks being smashed in the years to come. Albanese admitted as much when he told the roundtable that productivity was the key to “lifting living standards of Australians”.

A glimpse of future challenges flared on the opening day of the roundtable, when CSL announced a restructure involving 3000 job cuts as US President Donald Trump threatened higher tariffs on pharmaceutical exports from Australia. Memo prime minister: new visions are required in a world where old certainties are quickly fading.

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