Indexing tax scales is the morally correct thing for our government to do. It is unconscionable conduct not to do so.   If a company used such a stealth-like mechanism as tax “bracket creep” to increase prices, there would be public outrage and a call for action by the government.   A report in Today’s Australian by Patrick Commins that: “Australians are paying an average 30 per cent more income tax per person than a decade ago, even after accounting for inflation” exemplifies the pernicious impact of tax bracket creep.   Personal tax scales must be inflation indexed!

Australians are lucky to have one of the world’s best-functioning liberal democracies.   However, our government processes have lost efficacy, being too focused on political power instead of helping the community understand complex issues and committing themselves to “common-good” solutions that often have both “givers” and “recipients”.   A classic challenge is the expectation of some in the community for more government services than revenues can sustain and rising individual spending power without increased taxes and productivity improvements. Our governments are not courageous or trusted enough to resolve such dilemmas.   A community-wide dialogue is required, using trustworthy and transparent processes.

Our politicians fail to effectively address the growing problem of delivering affordable and appropriately located housing for the community.   The initial discussion focused on how to help young families commence home ownership. Focus is growing on affordable properties (either to purchase or rent) for low-income earners, people on social benefits and front-line service providers who should live near their work.   Given that all three levels of government impact the housing supply and that our constitution does not provide a mechanism to bring about a harmonised approach to the issue, a Royal Commission seems the best option for breaking the inertia.