Labor Must Ask Serious Questions on Policy and Values

Above:  Albanese corrrectly indentifies the need for policy review and good policy ; But 'root and branch' rejection of Labor's 2019 Platform would be a mistake.  New policies and 'new angles' are necessary.  But let's not jettison our values and abandon our interests on the way.  Labor's problems were largely 'tactical' ; and this also needs recognition.

Dr Tristan Ewins

Labor has been saying relatively little on policy since its defeat at the hands of the Morrison Government.   Many are saying Labor’s ‘move to the Left’ was the problem.  In that process other problems are being neglected.  The Coalition tax scare campaign (including on a non-existent 'death tax'); Shorten’s wooden performance in the final days ;  failure to build a strong enough ‘central narrative’ ; confusion on Dividend Imputation franking credits – and the failure to means test any measures there instead of applying the same rules to everyone.  Also Clive Palmer's $60 million intervention - dwarfing the monetary resources of both parties - changed everything and channeled preferences to the Conservatives.  Shorten also failed to sell the progressive tax reform message ; and avoided the issue when given the opportunity to ‘take it up to Morrison’ in a Leader’s Debate.  (here I'm thinking of Shorten's refusal to engage on Morrison's example of a very-high-wage workers' tax rising by 2%(!) under Labor)  

Expanding social goods and services necessitates progressive tax ; asking more of high income earners ; and that definitely includes the top 10 per cent.  Maybe even the top 20 per cent. Those in lower brackets need to contribute too based on ability to pay, but would receive much more in return.  Those in the lowest brackets may even receive indexed tax cuts.  (Income Tax needs to be radically restructured overall ; and then the lower brackets indexed – to prevent the erosive effect of bracket creep)  Tax indexation can prevent 'a flat tax by  stealth' via such selective exploitation of bracket creep.

In the big picture, though, Shorten led a united team and developed some very  good policy during his years in the leadership.   His modestly reformist policies have widely been portrayed as a ‘lurch to the Left’ ; and that illustrates well the relative right-wards shift in Australian politics where anything in the way of meaningful reform faces that kind of accusation.

But the Coalition’s massively irresponsible policy of tax cuts ($160 billion over the first 10 years, and much more proportionately over the longer term as ‘phase three’ kicks in) for the well-off put the onus on Labor to mount a response.  

We know we have an ageing population.  For the Left at least, we know tougher means tests, a higher age of retirement, failure of benefits to keep up with a rising cost of living and respond to the need to extend pensions more broadly – should be unacceptable.  Undermining the tax base is the road to a US-Style and strongly class-divided economy and welfare state.   An ageing population will also mean more stress on the health system ; and the correct response is to support citizens on need rather than adhering to some arbitrary ‘tax ceiling’ which can only respond with harmful austerity.  Medicare Dental remains an essential policy for Labor to embrace and campaign on vigorously.

To his credit, Albanese has come out against attacks and stigma against the unemployed.  But we need more.  Raise Newstart by at least $75 a week.  Apply active industry policies aimed at creating job opportunities for ‘at risk’ and vulnerable groups.  Not only the young unemployed, but especially the older unemployed ; and the disabled – including the mentally ill.   Highly educated older job-seekers are being forced to drop their qualifications from their resumes to be ‘more attractive’ for cleaning jobs and the like.  Meanwhile, while many look down on the cleaning profession it does involve skills, and it is hard work.  There is cause to reform the Award in these and other fields – for example Aged Care and Child Care. But where the market will not bear this we need government subsidies. Importantly, many of these areas are highly feminised.

Denmark provides an example in a sense.  That is with their active industry policies which seek development of ‘sunrise industries’ that make use of the skill sets from ‘sunset industries’, mixed with retraining. The policies are expensive: but the gains from labour market participation more than make up for that. 

In that process we need to review the  NAIRU – or non-accelerating inflation rate of unemployment – which supports a ‘buffer of unemployment’ (commonly in the vicinity of 5 per cent) to contain the bargaining power of workers and avoid wage inflation.  Hence there are always many more people looking for work than there are jobs – and yet still the unemployed face stigma. Instead we need to look to fiscal policy to contain inflation ; and co-operation with trade unions (eg: accepting higher taxes on high wage workers) in return for expansion of social goods and services and defence of industrial rights.  This would be applied after the Swedish model rather than the Accord – which at the end of the day failed to deliver to workers sufficiently in return for wage restraint.  Full employment makes a massive difference to the Budget and the broader economy if it can be sustained.

In short, Labor needs to take action to raise the status of some of our most exploited professions – while reforming the tax base and making social wage, social insurance, collective consumption, and welfare state expansion possible.   

Let’s explain these one by one to get some sense of what is meant.

‘Social Wage’ refers to the recognition that not everyone receives wage justice. And sometimes it is more effective to receive the proceeds of wages collectively to maximise the collective (and individual) benefit.  Think public health and education.  Corporate Taxation also factors in here as the corporates benefit from a healthy and skilled workforce.

‘Social Insurance’ refers to public-funded insurance against contingencies like unemployment, ill-health or disability via the tax system – which covers everyone.  After all – it could happen to any one of us – or our loved ones.

‘Collective consumption’ refers to when ‘the people’ get a better deal by consuming collectively via tax rather than as isolated consumers.  Leaving individuals with more money to spend at their discretion in other areas at the end of the day.  

It is appreciated that people need a reasonable degree of discretion in terms of determining personal needs structures.  But ‘collective consumption’ delivers massively in the area of pharmaceuticals consumption (think the Pharmaceutical Benefits Scheme or ‘PBS’) ; and could deliver in other areas as well – eg: infrastructure and goods like water and energy – which are becoming more unaffordable following effective privatisation.  Also think public infrastructure like ports, roads, public transport. communications: which should flow from the public purse where the state’s superior rate of borrowing and not-for-profit stance can deliver a better deal.  (water, ports, communications, transport infrastructure - should be re-socialised - reducing overall cost-structures; Though in some areas (eg: energy) some kind of 'market' should still exist ; But in the context of a public monopoly provider ; much more affordable, but still an incentive to regulate usage)

The “Welfare State’” is often taken in a catch-all sense which covers all of this, but for now think of the tax-transfer system and the need to support vulnerable Australians.  Newstart is the area of the most dire need ; but a 15% increase in other pensions can also be justified ; as well as support for the National Disability Insurance Scheme and the implementation of a National Aged Care Insurance Scheme (in response to the Royal Commission) which provides high quality services both for at-home and residential care on demand, and without onerous user-pays policies which send ‘consumers’ broke.  That also includes high quality food, quotas , a registered nurse on-site always , training in the handling of dementia , at-home packages on demand , rehabilitation and exercise on-demand , regular GP visits , private rooms , and meaningful (often facilitated) every-day interaction and outings (where possible) instead of just seating people down in-front of TVs all day.  For those ‘at home’ action to combat loneliness is crucial.

More public housing – perhaps interspersed with private housing to avoid stigma – is necessary too in order to tackle homelessness and housing stress.  But large scale public housing projects should also be considered – also providing quality amenities: laundries, pools, common rooms, internet connectivity – which people can respect and appreciate.  Austria manages a high level of public housing well – with very positive results.  Indeed, over 60% of Vienna’s population live in public or social housing.  It is the legacy of the interwar revolutionary Social Democrats (at the time officially of  a Marxist – but not Bolshevist -  disposition)– who prevailed in Vienna in the 1917-1934 period ; and who took government with a more modest agenda in the post-war period.

Eugene Quinn argues the following ; outlining the difference in culture re: public housing in Vienna which could be promoted in Australia as well:

“People here are used to the communal spaces of the social housing estates and are very comfortable living next to someone from a different background,”  Quinn says. “And because people are not crushed by their rents like in other major cities, they have a bit more time to be creative, to study, to get involved in community work.”

Apart from these areas, Labor also needs to take a strong line against the Coalition's ‘Ensuring Integrity’ union-busting laws.  Some in the Left dislike John Setka.  But more is at stake here than one man.  We are talking about the strategic position of the entire movement.  Which the Coalition well knows.  And Labor must acknowledge that as well.

In short, inevitably there must be a policy review.  But let’s be careful about dumping good policy.  Sure, let’s hone our message and our central focus.  Though we need a tactical campaigning review also: perhaps more so than a ‘root and branch’ policy review overall. If we cannot at least reverse Morrison’s overall tax cuts in a progressive way – focusing on tax cuts for the well-off – then we concede defeat.  That would mean conceding an Australia which retreated from anything recognisably social-democratic , and headed towards the divisions and insecurity we see in the US for example.

Importantly we must embrace the message of progressive tax and its implications rather than running away from that debate.  Trying to be ‘everything to everyone’ and not increase the tax burden on virtually anyone – means we have no way of funding reform at the end of the day.  But an openly progressive agenda would give the vast majority an incentive to vote Labor.

It is nonetheless appreciated that ‘middle income’ is not the same as ‘middle ground’, and some disillusioned voters are embracing a ‘centrism’ which is largely right-wing in practice.  Labor’s response must be tactical: appealing not only to interests but also to values.  A liberal response on social values, and stronger action on climate change can also detract from any ‘small ‘l’ constituency’ for the Liberals ; and pressure the Liberals to reform their own outlook ; shifting ‘the relative political centre’.  Labor must contest values in the economy as well as the 'culture wars' ; and its relative neglect here has marked a defeat for Social Democracy and Democratic Socialism in this country.

One thing is certain. Nothing is gained from a ‘culture of policy defeat’.  Labor must find a way to effectively campaign for government without compromising its values and reason-for-being.  

Mostly Unpublished Progressive Letters ; May to August 2019 - PLS Have a Read and Discuss

Herald-Sun Letters (mostly unpublished)  May-July 2019

Be Wary of Conservative Double Standards on Free Speech

“Kevin Donnelly (14/5) again makes a case for his version of freedom of speech.  Of course there are problems with free speech as an ‘absolute’.  We cannot allow Holocaust Denial to lead to a culture of forgetting ; or worse – to prepare the ground for future atrocities. But every time you dilute free speech as an absolute you also contribute to a growing wedge with increasing ramifications.  Even as a Christian I recognise that much scripture is at odds with modern thinking , and its expression can be hurtful to various groups.  At the same time faith is central to millions of peoples’ lives ; and criminalisation will lead to repression and polarisation. (Labor is not suggesting any such thing) But Donnelly needs to be more consistent.  ‘Free speech’ means religious doctrines are open to criticism. ‘Free speech’ also means charities and NGOs are not blackmailed to hold their tongues in criticism of government. (as the Howard Government attempted)  It means an organisation with hundreds of thousands of members like GetUp! should not find itself ‘in the crosshairs of government’ – with the intention of silencing it at elections.  By all means campaign for freedom of speech – but be consistent.”

Social Insurance and Infrastructure

“A.Jensen (Your Say 30/5) attacks Labor for making social (public) investments ; and condemns NBN and NDIS as ‘unfunded’.  To begin with, Labor identified a series of tax loopholes (mainly for the wealthy) which could have been closed ; saving tens of billions. But the Liberals ran a scare campaign, including the threat of some totally non-existent ‘death tax.’ Public investments often make sense ; and without them we run the risk of becoming a US-style society with enormous classes of working poor and destitute. Welfare and social insurance provide a safety net without which the unemployed, the mentally ill, the aged and so on  - would find themselves homeless and desperate.  Indeed, we need more money for public housing. NDIS has the potential to greatly improve the lives of some of our most vulnerable Australians.  The NBN, also, was to be the information infrastructure on which the industries of the future arose. But the Coalition went for the cheaper option. Now we have cost blow-outs and inferior technology.   Public investment in infrastructure and services,  and collective consumption (eg: the Pharmaceutical Benefits Scheme) is often in all our interests ; providing a ‘better deal’ ; leaving us all better off at the end of the day. “

Women’s Progress Welcome ; But Men are not ‘Essentially Bad’

“There has been welcome progress towards gender equality in recent years ; with emphasis on women’s sport ; equal representation in parliament ; debate about women’s disadvantage in the labour market, and attempts by the ALP to subsidise child care wages to rectify this in part.  But as Alan Barron (Your Say 3/6) appears to recognise, there has been another side to this story whereby ‘maleness’ appears to be ascribed  a ‘bad essence’.  Messages to the effect ‘girls can do anything’ are positive ; but boys must not feel ‘left out’ ; as if less is expected of them.  And as if ‘maleness’ is ‘toxic’. Women must be encouraged to assert themselves: to assert that “no means no” ; and men must be educated to respect this.  And men and women must take special care to be certain of consent where a couple are under the influence of alcohol. But should we eliminate all spontaneity?  Also the cause of gender equality has advanced in leaps and bounds.  But what about class-based inequality?   The struggle for gender equality needs to be but the first step in a much broader fight for equality.”

The Reality behind ‘Class Warfare’ Rhetoric

“The Herald-Sun (YS 4/6) talks about an end to “retrograde” “class warfare” from the ALP. But why is it not ‘class warfare’ when the Conservatives cut Health, Education, Welfare, public infrastructure and Social Insurance to pay for tax credits and tax cuts for the wealthy?  And gradually there is a vicious cycle of bracket creep and tax cuts for the well-off which is leading in the direction of ‘flat tax’.  Under which low and middle income earners would suffer. The fact is that under the Conservatives there is a constant state of class war ; which is gradually destroying our egalitarian traditions and leading us along the path of the US model: underclass, and great swathes of utterly destitute.  Mixed economies with strong welfare states can be strong economies as the Nordics (Sweden, Finland, Norway, Denmark) have shown.  The Herald-Sun may call it ‘class warfare’ ; but if the ALP gives up on distributive justice for workers and the disadvantaged it is giving up its core reason for being. What we need is a responsible media that stops throwing around loaded language to convince people to vote against their interests out of fear , and provides a balanced analysis instead.”

Labor and Workers must reject ‘Aspirational’ Ideology

“Lou Coppola (Your Say 10/6) condemns a ‘non-Aspirational’ Left which “denigrates” Australia. All countries have events in their histories they may now be less than proud of. But a strong democracy is capable of recognising both the good and the bad ; putting things right ; and then moving forward – our heads a bit higher.  For Australia’s part seminal moments include the granting of the suffrage for men and women ; granting indigenous people the vote, and then the Keating Government observing Land Rights ; and the establishment of Medicare as a more fair and efficient alternative to a US style private health system. This does not mean there’s not room to improve with a Treaty and further extension of universal health care into areas like dental and prosthetics. Meanwhile:  ‘aspirational’ Ideology around personal enrichment is a ploy for working class Australians to turn against their own interests for the sake of a pipe dream.  Most working class Australians see through it ; but even if the Conservatives can convince a minority it can be electorally influential.  Labor needs to confront this Ideology and maintain that tax cuts for the rich and austerity are not in the interests of workers.”

What’s at stake with the  CFMMEU and ‘Ensuring Integrity’

“(14/6)  “The John Setka affair is being exploited as a pretext to push through hard-right-wing anti union laws that are undemocratic and overrun citizens’ liberal rights.  The proposed laws would not only see the prosecution of leaders ; but the dissolution of unions themselves, leaving workers defenceless.   So much for freedom of association!   (and what happens to workers' collectively-held assets via their unions?) Without collective organisation in unions, workers have no defence of their rights and interests but government.  And government definitely cannot always be relied upon.  Without unions and without a right to withdraw labour workers are reduced to a condition somewhat similar to slavery.  Whether in defence of wages and working conditions ; or the promotion of safety ; or political industrial action to protest against unjust laws : industrial liberties must be preserved if a society is to honestly call itself liberal and democratic.  The areas which are the responsibility of the CFMMEU are also highly sensitive to the power of the broader labour movement to defend workers interests’ ; and if it ever comes to it – to defend democracy itself.  The CFMMEU’s strength also provides the opportunity to assist industrially weaker unions.  If necessary the broad labour movement must be willing to take action to render the ‘Ensuring Integrity ‘ legislation ‘the dead letter of the law’.  The case of Clarrie O’Shea in 1969 is instructive here.

Theophanous should rethink Call for Rightward Shift

“Theo Theophanous (17/6) urges Labor to ‘move to the Centre’. But the ‘Centre’ is relative, and with the Conservatives dictating the terms, it usually means shifting Right. He advocates passing the Coalition’s tax legislation in full ; avoiding ‘tax and spend’ policies.  With a Recession probably looming, that would mean redistribution to the wealthy, and massive austerity down the track ; making aged care reform impossible. Without social wage and social insurance expansion ; without progressive tax ; Labor is no longer a Social Democratic Party. Labor’s problems were confusion re: policy complexity; and scare campaigns (eg: the ‘Death Tax’) which cut through ; supported by a $60 million campaign by Clive Palmer which redirected preferences. That, and high unemployment in Queensland, with the misassumption Adani would create many jobs. Labor must be ‘progressively gradualist’, arguing for moderate increased progressive taxes in the vicinity of 1% to 1.5% of GDP.  (in addition to rescinding regressive Liberal Tax Cuts) It must be clear these do no hurt lower to middle income earners ; and that voters get ‘value for money’ in health, education, infrastructure, social insurance. If we accept the Coalition’s terms of reference in tax we let the Conservatives impose a ‘policy straight-jacket’ preventing social wage and social insurance expansion indefinitely.”

Need to Reforge Working Class as a “Class for Itself”

“Jeff Kennett argues that with widespread deindustrialisation and the existence of some very high wage jobs that ‘the working class no longer exists’. The working class has always included wage labourers exploited by business ; but has been widely reinterpreted to include public sector workers such as nurses and teachers.  The most important aspect of being ‘working class’ is not whether one is ‘blue collar’ or ‘white collar’, but that workers must sell their labour in order to survive.  What is true is that consciousness of class is falling ; partly due to a fragmentation of class identity with deindustrialisation.  But the reality is that ‘as a class in itself’ the working class still exists. And the challenge for the labour movement is to restore a sense of shared identity and interest amidst diversity. So the working class arises as 'a class for itself' in the broad sense. As for the prosperity Kennett alludes to ; the median wage is about approximately $53,000.  Which means half of all workers earn $53,000/year or less. “
https://www.news.com.au/finance/work/how-much-do-you-need-to-earn-to-be-rich-in-australia/news-story/cd7e6647199773c56ad5a9270c7aab87

Left must not Shrink Back from the True Reality of ‘Class Warfare’

“There’s an old saying on the Left:  “they only call it class warfare when we fight back”. To its discredit Labor during the election said little about the massive austerity that would necessarily follow those tax cuts. (the Coalition said nothing about this)  Labor proposed a traditional centre-left platform: closing tax loopholes to deliver a modest windfall which would have enabled cancer and dental care, subsidised child care, money for TAFE and more. This is labelled ‘class warfare’.  But when the Coalition restructures the tax system so workers on lower and middle incomes pay proportionately much more of the burden (moving towards a ‘flat tax’) this is lauded as ‘reform’. And also when it abolishes Penalty Rates.  Labor needs the focus and resolve to emphasise the coming austerity (on hospitals, schools, aged care, infrastructure) all through this term of government.  And so (in government) withdraw ‘phase 3’ which delivers $95 billion to the wealthy over only the first five years.  Politics is a continual ‘tug of war’ between labour, capital and citizens.   If we refuse to fight back for fear of the ‘class warfare’ label we have lost before we even begin.  That’s the point of it.”

Unemployed must be Treated with Decency

“A recent Herald-Sun article was Opinion dressed up as reporting. (A.Galloway, Insult to Taxpayers, Payments to Bludgers Withheld ; 31/7)   The object of the article was to inspire ‘outrage’ that job-seekers had missed appointments for possible jobs)  But as the article itself concedes, mutual obligation is very severe when it comes to Newstart, and the people in question had their payments suspended.   Also, Newstart payments are only approximately $40 a day ; imposing harsh conditions of poverty ; and are hardly a ‘lifestyle choice’.  Those on Newstart are hard pressed to feed themselves and put a roof over their head, let alone pay for smart clothes, a computer and so on – necessary in the modern world to search for work.  For many: disabled, older unemployed, regional unemployed – the search for work is almost hopeless. And yet we persist with promoting this loathing for the unemployed.  The real point of this regime is to create a ‘whip of hunger and utter destitution’ so jobseekers are forced to take any job no matter the pay and conditions.  This ‘reserve army of labour’ provides employers with ‘the whip hand’ and helps drive down wages and conditions for hundreds of thousands of other jobseekers.”

‘The Age’ Letters May to July 2019  (Mostly unpublished)

Democracy and the ‘Fair Go’ at Stake as Labor considers its Options

“(26/5) If Labor abandons distributive justice it more or less abandons its reason for being.  Labor needs to commission research from a multiplicity of sources to minimise the chances for error. Then it needs to actively campaign in order to restore support for a traditional social democratic redistributive agenda; which restores progressivity to the tax system with a focus on corporations and the top 10%.  And also full indexation of the bottom few tax brackets. Issues like superannuation tax concessions remain crucial for the Budget and distributive justice ; costing tens of billions annually.  Labor also needs to explain how the mix of bracket creep and regressively-structured tax cuts make the income tax system more and more unfair.  Labor needs a deep and broad policy agenda.  But Morisson’s victory shows how a narrow and negative message can ‘cut through’.  As well as the shallow but effective construction of the ‘ScoMo’ ‘everyman’ persona.  But is democracy viable any longer when the ‘Power Resources’ of the Right are overwhelming ; where a billionaire can buy an election ; where the Murdoch monopoly mass print media has so little effective competition ; and the Government is canvassing legislation to ban GetUp! From campaigning?”

https://www.news.com.au/national/federal-election/why-australias-superannuation-scheme-is-stacked-against-you/news-story/9ddbc4ffb7c59384dbc6827cc4f74464

Why the Anti-Union Stance at ‘The Drum’?

“The other night watching ‘The Drum’ on the ABC I was appalled to see a virtual consensus that anti-union laws enabling the deregistration of unions who take unprotected industrial action could be justified. The line of argument seemed to be that since corporations should be accountable if breaking the law, so too should unions.  But what this all really begs is the question of whether or not workers should have a right to withdraw their labour – full stop. This issue is now much bigger than John Setka and whatever indiscretions he has made.  The proposed laws could be a weapon with which to break the labour movement in this country.  As Sally McManus argued some time ago now – laws are not necessarily right.  Sometimes civil disobedience is justified – including industrial action.  If unions cannot take industrial action workers’ options are very limited to defend their interests. We cannot let John Setka be used as a cover for union-busting legislation which will weaken workers conditions, rights, strength and liberties in this country.”

‘The Age’ Shifts Right on Tax Debate

“The Age (22/6) argues that middle and high income earners will pay some of the highest income taxes in the world without the Conservatives’ $160 billion tax cut plan.  But ‘The Age’ has been unclear what it means by ‘middle income’ in the past.  In fact the Median (ie: middle) income is approximately $53,000/year.   $120,000/year is actually a very high income compared with most.  Also the gap between Australian and OECD average tax rates is almost 7 percentage points.  (or approaching $119 billion/year)  The Coalition’s tax cuts would mean massive austerity (worse in a recession) ; and maybe some of the gap would be made up by raising the GST (as in many European countries with their VATs) and a negative distributive outcome for genuine low and middle income earners.  Raising the top threshold of the 32.5% tax bracket from $120,000 to $200,000 would very significantly ‘flatten’ the overall system.  Some other countries may also have inheritance taxes, wealth taxes, strong land taxes ; but Australia has always depended highly on income tax.   The trend is towards less equality. But we don’t HAVE to follow the trend.  And there was a time I expected better from ‘The Age’.”

https://www.news.com.au/finance/work/how-much-do-you-need-to-earn-to-be-rich-in-australia/news-story/cd7e6647199773c56ad5a9270c7aab87?fbclid=IwAR0PdJydLNCE2-ltF_xHhybr8HGQASEPH4OPQLaG_OkyVMTzyXXRIWIuQ50

https://data.oecd.org/tax/tax-revenue.htm

https://www.budget.gov.au/2019-20/content/tax.htm

Welcome Consideration on Civics Education in Victoria: But Stronger Action Necessary

“It was good to read that the Victorian State Government is set to emphasise Civics education (17/7), partly in response to the voices of students themselves.  This must include processes, parties and institutions: but it must be about more than this as well.  Education for active and critical citizenship must explore interests, values and pathways to civic activism.  That includes “ideological literacy”: an appreciation of the political spectrum from far left to centre, and to the far right. As well as libertarian and authoritarian influences.  Importantly: there need to be nuanced understandings. Political categories like ‘social democracy’, ‘liberalism’, ‘democratic socialism’, ‘conservatism’ have historically meant different things to different people.  Opportunities for activism include parties, representative democracy, and social movements. The aim is not to indoctrinate: but rather this calls upon the professionalism of teachers to impart knowledge, wisdom and understanding in an inclusive way. Students should go out into the world ready to participate as active and informed citizens ; always ready to widen their horizons and make informed political decisions and interventions.  This is about empowerment ; and that empowerment is good for democracy.”

Social Justice for the Aged, the vulnerable and Low Income Australians

 

above: Federal Minister for Ageing, Mark Butler has had some victories for Aged Australians - But there's a lot that's left to be done!!! 

In the following article ALP Socialist Left Activist Tristan Ewins argues in favour of reform in the interests of vulnerable and Aged Australians - including tax breaks and national aged care insurance. We need ALP activists to take up these causes and make them a reality before the September election!  Mark Butler seems to be interested - But are others in the Cabinet and Caucus listening?

Firstly: Tax Breaks for Vulnerable Australians wanting to ‘shift down’ to a cheaper home

In the Herald-Sun today (June 2^{nd 2013})  Federal Minister for Ageing Mark Butler was on record coming out in support of removing Stamp Duty tax from the sale of the estates of pensioners.  The tax is seen as a disincentive to ‘shift down’ to smaller and more manageable properties – and the suggestion of an initiative in this direction is similar to what we have argued for at ‘Left Focus’ and ‘ALP Socialist Left Forum’.   This makes good sense for pensioners who can no longer manage a (relatively) large property, including properties with large gardens.

In response the Victorian Conservative government is claiming that this kind of program already exists in the form of a Stamp Duty waiver when shifting to properties up to $330,000 value, and with concessions for properties up to $750,000 value.   This may be true, but the Federal Labor government would be right to see these measures as insufficient for pensioners: with Stamp Duty still comprising a major disincentive to “shift down” to a more manageable property.    Quite simply there are few decent properties – even small properties – under $330,000 market value these days.   And pensioners may not want to move out to the outer urban fringe in order to benefit from such programs.

Also importantly: such schemes could be of interest to low income families as well, and also low income divorced singles who would benefit from ‘shifting downwards’.  For those and others of limited wealth and on low incomes for whom a property may be all they have, the option to ‘shift downwards’ to a smaller property could make a great difference in accessing funds from the sale of their residences.   It could also potentially make a great difference to disabled Australians for whom the only source of income is the disability pension.    Though to avoid the dual outcome of gentrification of some suburbs, and infrastructure and service poverty in ‘low income ghettos’ - such a policy needs to be combined with active intervention to overcome infrastructure and service deficits in affected suburbs.

So at ‘Left Focus’ and ‘ALP Socialist Left Forum’ we are saying ‘Yes’ to the removal of Stamp Duty Tax for aged and disability pensioners, as well as low income Australians and lower income divorcees for whom relocation could make a great deal of difference for their quality of life.  Though so the policy cannot be abused we are suggesting it can only apply to specific individuals once in every ten years – with the exception of house sales upon entering care.  We are saying ‘Yes’ to Federal compensation of State governments so such a policy can be implemented nation-wide – and for Labor to adopt this as an innovative and equitable policy with the election drawing nearer.  Further, we are arguing that this be paid for by restructuring the tax mix rather than through austerity.  And we are hoping some people in the Federal and State governments are listening!

Again:  Aged Care Insurance

A brief postscript, though!

We are also saying ‘Yes’ to National Aged Care Insurance as a priority comparable to the National Disability Insurance Scheme.  But we are opposing regressive user pays charges for aged care services and accommodation. 

We are saying ‘Yes’ to further improvements for the pay, conditions and career paths of Aged Care workers – As well as improvements to the quality of service enjoyed by all aged residents in care – whether high or low intensity care.   This means good quality food; privacy with personal rooms if so desired; better carer and nurse to patient ratios; facilitated social interaction and intellectual stimulation;  and access to IT for those so interested; as well as access to change of scenery including gardens.  It means gentle exercise for those capable; and prompt access to dental care if necessary.  It also means compassionate care for dementia sufferers, and a big public investment for dementia and Alzheimers’ research.  Finally it means support for Carers’ whose intervention could make the difference in preventing premature resort to high intensity care.

Not that long ago Labor figures were speaking of approaching the coming election on the theme of ‘Social Insurance’.  This still makes sense!  But since Abbott has attempted to neutralise the issue with bipartisan support for disability insurance, Aged Care Insurance as outlined here could reignite that debate. And if Abbott attempts to neutralise this issue by adopting a similar policy – then that is a progressive victory as well!

At ‘Left Focus’ and “ALP Socialist Left Forum’ we have argued that Tony Abbott is betraying his Democratic Labor Party heritage by taking a hard line against social welfare, and policies which punish the poor and vulnerable. ‘Compassionate conservatism’ which has a heart for social welfare may not be our ideal – but it is better than contemporary neo-liberal  Neo-Conservatism – which ‘has no heart’.  If by some quirk of fate there are Conservatives reading this post, we urge them to consider the positions of the post-war German Christian Democrats and their support for social welfare and a ‘social market’.  We are saying this well aware that the other aspect of the DLP was its regrettable role in a split which kept the ALP out of power for decades; and which took an anti-liberal authoritarian line in favour of literally banning the Communist Party of Australia; and opposing militant unionism. But perhaps were Labor to adopt Aged Care Insurance – Abbott might also rediscover his conscience and assert himself publicly and in the Liberal Party Room ahead of the election – in favour of the policy.   

And again: win or lose the election – by initiating the policy and potentially securing bipartisan support Labor would have achieved a vital progressive victory.