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Turnbull to meet with business and union leaders to outline reform agenda Turnbull to meet business and union leaders to outline reform agenda
(about 9 hours later)
The prime minister, Malcolm Turnbull, will this week meet with business and union leaders, as the government’s new economic team sets out its fiscal agenda. The prime minister, Malcolm Turnbull, will this week meet business and union leaders as the government’s new economic team sets out its fiscal agenda.
The meeting follows last month’s national reform summit, and comes as the unions threaten a public campaign against changes to penalty rates, similar to the campaign it waged against the unpopular Howard-era WorkChoices policy.The meeting follows last month’s national reform summit, and comes as the unions threaten a public campaign against changes to penalty rates, similar to the campaign it waged against the unpopular Howard-era WorkChoices policy.
“I am looking forward to meeting with the summit’s leaders to hear the shared reform priorities of business, unions and the wider community,” Turnbull said. “Our government is focused on the opportunities arising from technological disruption and in creating an environment for strong, innovative industries to grow.”“I am looking forward to meeting with the summit’s leaders to hear the shared reform priorities of business, unions and the wider community,” Turnbull said. “Our government is focused on the opportunities arising from technological disruption and in creating an environment for strong, innovative industries to grow.”
“I want to build on the key priorities of the summit and work towards a practical set of reforms that will help to create jobs, drive innovation and stimulate growth,” he said.“I want to build on the key priorities of the summit and work towards a practical set of reforms that will help to create jobs, drive innovation and stimulate growth,” he said.
Turnbull, in challenging for the Liberal party leadership, issued a scathing review of his predecessor’s economic credentials.Turnbull, in challenging for the Liberal party leadership, issued a scathing review of his predecessor’s economic credentials.
Tony Abbott, he said, “has not been capable of providing the economic leadership our nation needs”.Tony Abbott, he said, “has not been capable of providing the economic leadership our nation needs”.
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Turnbull’s economic team, which includes new treasurer, Scott Morrison and new assistant treasurer, Kelly O’Dwyer, has been busy outlining the government’s revamped fiscal strategy.Turnbull’s economic team, which includes new treasurer, Scott Morrison and new assistant treasurer, Kelly O’Dwyer, has been busy outlining the government’s revamped fiscal strategy.
Mathias Cormann, who kept his job as finance minister in last week’s ministerial reshuffle, spoke to the Sydney Institute on Monday night.Mathias Cormann, who kept his job as finance minister in last week’s ministerial reshuffle, spoke to the Sydney Institute on Monday night.
“Our new treasurer and I have hit the ground running,” he told the audience.“Our new treasurer and I have hit the ground running,” he told the audience.
Cormann said that the government would stick by the classic Liberal goals of small government with low public sector expenditure and a focus on reducing debt and deficit.Cormann said that the government would stick by the classic Liberal goals of small government with low public sector expenditure and a focus on reducing debt and deficit.
But he acknowledged that there was not much fat to cut in the sector, which has seen the loss of more than 16,500 public service jobs since the Coalition came to power, saying that the real budget savings would come from cutting back government programs.But he acknowledged that there was not much fat to cut in the sector, which has seen the loss of more than 16,500 public service jobs since the Coalition came to power, saying that the real budget savings would come from cutting back government programs.
“We will not be able to achieve a sustainable budget position without continuing structural reform of government program spending,” Cormann said. “The public service wage bill represents less than 5% of federal government expenditure. Most of our federal government expenditure goes into programs.”“We will not be able to achieve a sustainable budget position without continuing structural reform of government program spending,” Cormann said. “The public service wage bill represents less than 5% of federal government expenditure. Most of our federal government expenditure goes into programs.”
Cormann praised the government’s budget policies, saying 332 measures worth $85bn over the next five years, have passed the Senate.Cormann praised the government’s budget policies, saying 332 measures worth $85bn over the next five years, have passed the Senate.
Big ticket items, like restrictions on family tax benefits, welfare for young people and proposed changes to higher education, have not gained the support they need to pass the Senate.Big ticket items, like restrictions on family tax benefits, welfare for young people and proposed changes to higher education, have not gained the support they need to pass the Senate.
“Our next priority will be to secure our families package through the Senate, which our treasurer has been negotiating with the Senate crossbench in recent months,” Cormann said.“Our next priority will be to secure our families package through the Senate, which our treasurer has been negotiating with the Senate crossbench in recent months,” Cormann said.
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“Labor continues to block about $13.6bn in budget repair measures which we have put forward. We will continue to negotiate their passage through the Senate,” he continued. “No policy measure will be taken off the table unless and until it is replaced with an alternative policy which achieves the same improvement in our budget position in another way.”“Labor continues to block about $13.6bn in budget repair measures which we have put forward. We will continue to negotiate their passage through the Senate,” he continued. “No policy measure will be taken off the table unless and until it is replaced with an alternative policy which achieves the same improvement in our budget position in another way.”
Morrison told the Australian Financial Review on Monday that the welfare, workplace and tax systems must all work together in order to achieve growth in the economy.Morrison told the Australian Financial Review on Monday that the welfare, workplace and tax systems must all work together in order to achieve growth in the economy.
He flagged that the government would keep all areas of tax reform, including changes to superannuation, on the table regardless of how electorally unpopular they are.He flagged that the government would keep all areas of tax reform, including changes to superannuation, on the table regardless of how electorally unpopular they are.
Much less contentious, the government’s priority focus on tackling bracket creep.Much less contentious, the government’s priority focus on tackling bracket creep.
“That is the problem with the tax system,” Morrison told Macquarie Radio earlier on Monday. “There are not the rewards in there, the incentives for people to work, save and invest.”“That is the problem with the tax system,” Morrison told Macquarie Radio earlier on Monday. “There are not the rewards in there, the incentives for people to work, save and invest.”
The government faces a looming battle on industrial relations, too. Turnbull and resources minister, Josh Frydenberg, have indicated that a cut to Sunday rates will be considered.The government faces a looming battle on industrial relations, too. Turnbull and resources minister, Josh Frydenberg, have indicated that a cut to Sunday rates will be considered.
Cutting penalty rates is one of the suggestions of the productivity commission’s draft report into workplace relations. The government will make a formal response once the full report is released in November this year.Cutting penalty rates is one of the suggestions of the productivity commission’s draft report into workplace relations. The government will make a formal response once the full report is released in November this year.