Labor in Government provides Opportunities that Should not be Wasted

 

In the run-up to the Federal Election many progressives tried to justify Labor’s small target strategy by arguing that Labor would get things done once in government. But that too much detail beforehand would confuse and overwhelm people.  Now the day has come.  Labor has enjoyed a strong victory. And it’s time to deliver.

The Greens have argued for Medicare Dental ; but Labor could make the policy its own while winning broad and ongoing Greens support for the remainder of the term.  The squeeze on the cost of Gas also demands subsidies in favour of those on low incomes and welfare.  While an increase in the supply of public housing could improve housing affordability. Pressure on the NDIS should be lifted with additional funding ; as should pressure on our hospitals.  Waiting lists have exploded with Covid ; and action is urgently required. Accessibility and affordability in Higher Education should also be addressed with lower fees and an increase in repayment schedules clearly above the average wage.  Tied grants should be provided to the states to fund an increase in teacher numbers ; while a National Curriculum should be designed which promotes active, informed and critical citizenship.   This includes understanding of political processes and opportunities for public sphere participation ; as well as sophisticated ideological literacy. Finally, promises on Aged Care should be implemented. Albanese has promised an increase in care personal attention hours for residents ; but to implement this we need Aged Care Worker Ratios. Winning Government is not the end of the journey ; it is only the beginning.

We also need a sense of scale when talking about funding for reform.  There is often a sense of panic and alarm when talking about policies which go into the billions.   How often do we hear that ‘we cannot throw money at problems’ or that funding policies is dismissed as a ‘cash splash’.  (and hence ‘irresponsible’)  But let’s be clear ; the economy is valued at some $1.7 Trillion a year. That’s ONE THOUSAND AND SEVEN HUNDRED BILLION.  Fear to pursue truly ambitious policy leads to stagnation.  And failure to commit money translates as a failure to commit resources.  Viewed thus, any public policy agenda will fail without sufficient resourcing.  Labor needs to be thinking about what is reasonable in terms of short to long term plans to expand the social wage and welfare state, as well as other programs to provide infrastructure and skill development, and to improve public broadcasting.  We need to develop popular understanding of concepts such as ‘collective consumption’ ; and how the social wage can provide better value for money for workers, consumers, tax-payers.  $17 billion is one per cent of GDP. And over several terms of Government it is a reasonable objective to aim to broaden the social wage and welfare state by 5 per cent of GDP.  

 

This is not an arbitrary figure, but an estimate of what is necessary for ambitious reform.  Again, this could fund public housing, education and health, aged care, welfare and unemployment insurance reform, infrastructure (including renewable energy, rail transport and fiber to the home National Broadband Netowork (NBN) ), and programs to secure guaranteed job placement and experience for the disabled.  Disability Pensions should be reformed also, to increase the scope to supplement income with part-time or casual work, and to take away perverse incentives to avoid intimate relationships.  (eg: measures which radically reduce pension payments to individuals in relationships and marriages)   Further ; local government should be supported so that suburbs who suffer from undeveloped social infrastructure like parks and gardens, sporting and fitness infrastructure, libraries and so on – are able to deliver better quality of life to working class families.

 

Meanwhile ; over the long term there should be plans to resocialise energy and water.  And to reintroduce public-owned competitors in markets like financial services and insurance: to counter collusion and support consumers by providing competition from government business enterprises on a not-for-profit footing.

 

Finally, the labour market demands structural reform to prevent the entrenchment of a class of working poor Australians. This may have a once-off inflationary effect ; but redistribution one way or another is necessary to deliver wage justice.   We need to address the distribution of the economic pie between capital and labour ; but also between labourers themselves as well.  Other innovative policies could include financial support and financial counselling for people planning on developing co-operative enterprise. (on either a large or small scale)  If increases in minimum wages will not eventuate without direct intervention, then there should be direct intervention.  This should be undertaken where the current framework of Fair Work Australia fails to deliver.  Allowing secondary boycotts 'in good faith' could also enable the industrially strong to assist the 'industrially weak' in achieving better outcomes for historically low-paid workers.

 

It's not good enough to put ambitious reforms off until a second term. Policies like Medicare took years to become entrenched ; to the point where any effective frontal assault against basic socialised medicine became impossible.  Here, also, once-introduced and accepted as part of the ‘socialised medicine landscape’, Medicare Dental would be very difficult to dismantle. The establishment of  a Labor Government provides the opportunity to introduce life-changing reforms. It is an opportunity that should not be wasted.

Funding and Services Crucial for Aged Care

     above: access to sunlight, fresh air and gardens can improve quality of life in aged care

Dr Tristan Ewins

The Aged Care Royal Commission had laid down its findings.  These should be the source of great shame for the Government.  But also for Labor – who failed to prioritise the issue over the decades as well.  It now falls to Labor Federal Opposition Leader Anthony Albanese to drop the ‘small target, ‘no new taxes’ policy and promise to fund comprehensive, needs-based Aged Care with ongoing and significant progressive tax reform.  Labor could plan for incremental reform over a ten year timeframe, peaking at 5 per cent of GDP in new progressive taxation. But aiming for 1% to 1.5% of GDP in a first term.

After scrutiny from the ABC especially in recent years, It should come as little surprise that the Australian Aged Care system has been found to be subject to appalling neglect.  ‘The Guardian’ reports that after over 20 years of ‘efficiency dividends’ almost $10 billion a year had effectively been ripped out of the Aged Care budget.  This funding – and more – needs to be restored.

The Royal Commission has found that since its inception – with the 1997 Aged Care Act – the aim of the system has been to cap costs rather than ensure quality.  Australia spends less than half the amount provided for proportionately in the Netherlands for instance. To improve quality, and wind back inequitable user-pays, funding needs to at least double.   

On the understanding that the system has been under-resourced for decades, now, Aged Care has lacked nurse and aged care worker ratios. Many workers lack skills, are under-paid, and are demoralised.   Casualised labour is common, and makes it difficult for staff to form relationships with residents. Workers often need to move between several workplaces.  Experts informing the Royal Commission have concluded that residents require at least 215 minutes of personalised care a day.  (including 44 minutes with a Registered Nurse) 

It is also notable that about 25% of elderly Australians (over 70) suffer chronic social isolation ; and this needs to be addressed as much as purely-physical needs.  

Abuse also affects between 13% and 18% of residents, and much greater oversight is necessary to defend their rights and dignity.

Because of inadequate ratios it is not uncommon for aged care workers to try and dress and shower elderly residents in around 6 minutes: which must surely impact on the quality of care.  And involve significant trauma. Food is often cheap and un-nutritious.  Dental care and other Allied health services are not always adequate.  Often ‘life’ consists of being sat down in front of a TV in a common room all day. 

Sometimes people develop bedsores or lay in their own urine or excrement because there is inadequate supervision. There is a desperate need for more facilitated social interaction, and excursions for those capable.  People need sunlight, privacy, pleasant surrounds, gardens, books, things to do and aspire to. Rather than receiving specialist care, those with dementia are often literally ‘tied down’, or ‘knocked out’ by heavy application of anti-psychotic medications. 

A largely privatised system has faced inadequate government scrutiny. With funding already critically low, pressures to provide profits and dividends have driven a culture of ‘cutting corners’ in the industry, to residents’ detriment.

Many who require Aged Care would prefer to stay at home with assistance packages.  (this is also more efficient in terms of necessary funding)  But waiting lists have hovered at around the 100,000 mark. Many thousands die every year waiting for care that is never delivered. This is also unfair for Carers.

Scott Morrison has injected almost half a billion into the system in response to the Commission’s findings. But this is only a small fraction of what is needed. He claims reform will take ‘years’ ; but in fact the government is still focused on containing costs as opposed to fixing the system.  They hope that – with time – people will ‘forget’ – and pressures for tax reform will recede. Their ‘low tax credentials’ are more important to them than our vulnerable elderly. Over the long term, Labor is partly to blame as well. If Aged Care was prioritised as much as Covid, reform could be implemented more rapidly.

 Aged Care ‘for profit’ is part of the problem ; but not-for-profits have a hard time sustaining the necessary staff, infrastructure and services also.  Profiteers should be driven out of the system. Government and not-for-profits should step in to fill the void.

A robust, dedicated and progressively-structured Aged Care Levy could raise at least $16 billion to be redirected into the system ; enhancing health and social services, improving ratios of aged care workers and nurses , ensuring more personal attention for residents and those requiring care-at-home.  Capital should also pay its share, with Company Tax rising by at least one per cent. 

Overall, progressive tax should rise as soon as possible (over the short term) by over one per cent of GDP – maybe even 1.5% of GDP. (ie: somewhere between about $16 billion and $24 billion a year)  The Morrison Government needs to be pressed to implement these reforms immediately ; but otherwise a new Labor Government needs to implement such change in its first term.

Labor needs to ‘break the bipartisan consensus of neglect’ and run hard on tax reform for Aged Care, as well as mental health and supporting the National Disability Insurance Scheme. (NDIS)  Jobseeker needs to rise by at least $100 a week, and maybe more. Other pensions could also be strengthened.  There is widespread public support for tax reform if tied to crucial areas of public need.

More is needed over the long term to achieve a social wage and welfare state of Nordic proportions.  Provision of care needs to be ‘needs based’ rather than ‘capped’ regardless of what that means for cost.  Government oversight needs to consider ‘basics’ like food and staffing ratios ; but also broader ‘quality of life’ issues. In the future one priority should be keeping the elderly ‘connected’ with internet access.

Labor needs to mobilise its resources to campaign for extensive Aged Care reform now ; as well as reform for mental health, NDIS, Jobseeker, and other pensions.  Aged Care and Mental Health especially are ‘in the public eye’ for now.  We need to maintain and increase the momentum for change while we have the chance.  These need to be key issues for the coming election, and also in the development of Labor’s National Platform.  (a Special Conference is being held near the end of March 2021– this month!)  

Labor activists and parliamentarians are placed to make a difference in unions, social movements, government and the broader Party.  We all need to attempt to lead debate and apply pressure as best we can while there is a ‘window of opportunity’ for change.

Albanese: Take a Stand on Tax for our Supporters' Sakes

above:  Anthony Albanese must take a stand for Labor Constituents, opposing effectively flatter and lower tax which would end up with austerity and inequality down the track...

A letter to Anthony Albanese:

Albo! : Don't pass phases 2 and 3 of the Tory Tax Plan

Abbott blocked good policy ; Now Labor has a right to block sweeping tax cuts that will indirectly hurt millions of its constituents. And many will be very disillusioned or angry if you let phases 2 and 3 pass.

The Government's plans include the following for phases two and three:  (from Treasury)

"For 2022–23 and 2023–24, the top threshold of
the 19% tax bracket will increase from $37,000 to $41,000
the 32.5% bracket will increase from $90,000 to $120,000.

For 2024–25 income year onwards, the top threshold of the 32.5% tax bracket will increase from $120,000 to $200,000."

This represents an effective 'flattening' of the tax scales ; with higher income individuals on effectively lower rates of tax.

It will also cost the Budget $160 billion over 10 years. This when we're likely heading for a recession. It will fuel austerity.  Especially if the government prioritises the surplus even in time of economic downturn.

Finally: remember that the median wage in Australia is only approx $53,000/year. The Conservatives talk about people on $120,000/year as if they're 'battlers'. If we don't stand up and fight only the Conservatives will eventually win with their long term agenda of a flat income tax.

They also want to legislate ahead for the next term of government which is totally unreasonable.

The Conservatives claim a mandate. Yet they won through a fear campaign based on lies ; Clive Palmer's Money ; and preferences from Palmer and One Nation.  And in Opposition under Abbott they never respected Labor’s mandate.

Labor needs to restructure income tax for fairness ; and index the lower brackets to avoid a vicious cycle of bracket creep and regressive tax cuts which flatten the scales.  This must be a priority for Labor upon re-election.

We don't need to capitulate on progressive policy. Labor needs a strategy to nullify the fear and disinformation campaigns.  Capitulation is not a strategy.

Raise progressive taxes by somewhere in the vicinity of 1% to 1.5% of GDP upon retaking government. Exclude lower and middle income earners from higher taxes. Be thorough in this. Point out the moderate scale of the reform ; and explain where the money is going. (eg: Aged Care Social Insurance, Medicare Dental)  If Labor must tax a broader base then consider the Medicare Levy as well. It’s the closest thing in this country to “a popular tax” because of the clear connection with medical services, and the universal coverage most Australians value.

The Coalition is fond of arguing about "great big new  taxes" - even where there are no new taxes; Labor HAS to fight them on this.  Again: Insist on a figure in the vicinity of 1% to 1.5% of GDP in the first term of a new Labor Government.  Point to our low tax rates in Australia compared with the OECD average.    (approx. 27% of GDP compared with approx. 34% of GDP)  Australian tax overall is approximately seven percentage points lower in Australia compared with the OECD average.  That’s a difference of approximately $119 billion Australian dollars a year.

If we give in we get an Americanisation of the discourse which gradually flattens tax scales, and makes meaningful social democratic reform on social wage, social insurance, public infrastructure and welfare impossible.

Take a stand, Albo.  That’s what ordinary Labor members and voters want and expect from you.

Dr Tristan Ewins  (Labor member of over 25 years)