Australia’s Economic Policy Challenges, Address to the

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Transcript Australia’s Economic Policy Challenges, Address to the

Address to the Committee for
Economic Development of Australia
John Fraser
27 February 2015
IMF Global Growth Revisions
4.75
Per cent
Pre-GFC average
4.25
4.1
2016
2011
3.7
2015
3.75
2013
2014
3.5
2012
3.25
2.75
Jan-11
Jul-11
Jan-12
Jul-12
3.4
Jan-13
3.3
Jul-13
Jan-14
3.3
Jul-14
Jan-15
Net impact of unexpected revenue windfalls,
spending decisions and tax cuts
2
Per cent of GDP
1
0
-1
Revenue parameter changes
-2
Expenses policy changes
Revenue policy changes - other
Revenue policy changes - personal income tax
-3
1998-99
2000-01
2002-03
2004-05
2006-07
2008-09
2010-11
2012-13
2014-15
Structural Reform
• 1990s – Competition enhancing reforms
underpinned strong productivity growth
• 2000s – Reforms stalled, living standards rose
with terms of trade and mining investment
• Today – Structural reform required to sustain
growth in living standards into the future