Boom ‘just helps the rich’

Most Aussies feel no gain from economic growth

JUST 5 per cent of Australians believe they have gained personally from the nation’s record economic expansion, now in its 27th year.

A national poll conducted for the Committee for Economic Development of Australia found 74 per cent of respondents felt the main beneficiaries of the growth were larger corporations and senior executives.

“A decade of stagnant incomes and cost-of-living pressures in areas like health and electricity are contributing to this feeling,” CEDA chief executive Melinda Cilento said yesterday.

“Waning trust in business and politics are also likely factors.”

She said economic development and reform were important factors for improving Australians’ quality of life but if the community felt removed from the benefits from growth, then gaining traction on economic reform became more difficult.

The poll showed people over 50 and those outside of capital cities were more likely to feel they had not gained at all from economic growth, that the gap between the richest and poorest in Australia is unacceptable and it is difficult to live on their incomes.

As such, key issues around supporting business competitiveness, from reducing the company tax rate and red tape to supporting new industry, ranked as least important from respondents.

The survey comes as the Turnbull Government is attempting to secure Senate support for the remainder of its 10year enterprise tax plan that aims to cut the company tax rate from 30 per cent to 25 per cent for all businesses.

Delivering the opening address to the CEDA conference, Treasurer Scott Morrison (pictured) argued that extending the legislated tax cuts for businesses with a turnover of up to $50 million to all companies would benefit nine out of 10 Australian workers in the private sector.

“You want to boost economic growth? Let businesses invest more of their earnings back into their business – buying new machinery, hiring more Australians, taking on new markets and new opportunities and paying their workers more,” Mr Morrison said.

The report also identifies what Australians feel should be the country’s priorities as a nation. These include reliable, low-cost basic health services and essential services; access to stable and affordable housing; affordable, high-quality chronic disease services; and reduced violence in homes and communities.