Economic Reform Roundtable should mark start of ongoing, inclusive action to address national challenges

ACOSS CEO Dr Cassandra Goldie welcomed the constructive dialogue across the three days of the Economic Reform Roundtable, which she attended on behalf of civil society organisations. 

“This roundtable was a rare and welcome opportunity for invited participants to discuss in depth with government the big challenges we face,” said ACOSS CEO Dr Cassandra Goldie. 

“As the Treasurer said in summing up the meeting, there were ‘heartening signs of consensus’ on difficult issues. 

“Whatever form it takes, we need more of this kind of constructive dialogue that puts vested interests aside and identifies workable solutions to the issues that matter to people.” said ACOSS CEO Dr Cassandra Goldie. 

ACOSS said that it’s vital that the diversity of voices from across the community are represented and heard in discussions moving forward. 

“Our main role and focus over the past three days has been to represent the interests of people from diverse backgrounds and with the least whose living standards have fallen – those experiencing racism, ableism, and ageism, those living in poverty, insecurely housed, renting or locked out of paid work.  

“They must be front and centre in any discussion of the big challenges and changes we now confront – whether it’s climate change, tax reform raising revenue for the services and income supports we need, the digital revolution or affordable housing – because they are worst impacted. 

“We also prioritised being a strong voice for the community sector and care economy that provides the vital services to promote community wellbeing 

“Over the last three days there was welcome progress and alignment on some of the big challenges we face, and goodwill and determination in the room to resolve them.  

“This must be the beginning, not the end point, of constructive dialogue and engagement with government on these issues.   

As Dr Goldie highlighted over the three days,  

“Australia is the second wealthiest country in the entire world. Poverty is one of the most expensive choices we continue to make. We need to put wellbeing at the heart of our economy reform agenda and invest in our people and our planet. With too many people excluded due to ableism, racism, ageism and other forms of exclusion, we must lift up our efforts to deliver economic reforms that place people with the least at the centre, building bridges across our divides.” 

More information: 

Tax and government revenue: 

  • ACOSS welcomes the recognition by the Roundtable that the tax system needs to be reformed to address intergenerational and other inequities, to promote productive investment, and to fund the services and supports we all need.  
  • ACOSS is clear that governments need more revenue to provide the essential services and income supports people need and deal with climate change.  
  • This should include action to close tax shelters favouring people with substantial income and wealth including the capital gains tax discount and private trusts; and reform of highly inequitable superannuation tax breaks. 
  • It should also come from proper taxation of use of our mineral resources such as gas extraction and export, and removal of subsidies for fossil fuel use such as diesel rebates, alongside strong emission reduction targets for 2035. 
  • Tax reform is always hard but also urgent. There is way through if government works on it with the community to make the case for change.  

Community and care services: 

  • ACOSS welcomes the Treasurer’s recognition that public procurement needs to be reformed to modernise public and community services. We are hopeful that this will enable alternative approaches to failed marketised funding models in areas as diverse as childcare, aged care and employment services. 
  • In the roundtable ACOSS raised the impact of one and two-year contracts in community services sector on their ability to attract and retain a skilled workforce and welcomed positive discussion to develop more collaborative commissioning of services. 
  • The ‘’Not-For-Profit Blueprint’’ developed collaboratively between the community sector and government provides a framework for tackling unnecessary regulatory burdens, and to focus on the quality and productivity of community services. 
  • During the Roundtable, Dr Goldie noted the major recent announcements about further changes to the NDIS and urged Roundtable participants to listen to the views of people with disability and their representative organisations, as they respond to the latest developments.  

Employment, skills and income support: 

  • ACOSS welcomes clear support in the room that the employment services system is failing and needs fundamental reform. We must provide adequate support to people facing barriers to paid work, to develop skills as well as tackling ableism, ageism, racism and other forms of discrimination.  
  • There was also broad agreement that we need to do better to recognise the qualifications and skills of migrants so that they are not locked out of paid work or in jobs well below their skill level. ACOSS welcomes the Treasurer’s recognition of this in his summary of priorities.  
  • Sustained full employment, equitable access to training and skills development and a decent income support safety net are essential to give people the confidence and security that they won’t be left behind in the labour market and to confront the big changes ahead, including broader adoption of AI and climate change.  
  • Dr Goldie highlighted  that, alongside welcome changes to social security in the Government’s first term, our unemployment payment Jobseeker and Youth Allowance remains woefully in adequate and amongst the lowest in the OECD, now just 43% of the minimum wage.  

AI:

  • ACOSS welcomes the Treasurer’s commitment to the development of an AI plan for the Australian Public Service and his acknowledgment of the need for a human decision-making element in critical decisions affecting people.  
  • There was a balanced discussion in the roundtable of the potential and the risks of widespread adoption of AI. In the shadow of Robodebt, and recent damning reports by the Commonwealth Ombudsman and Deloitte into social security compliance systems, ACOSS raised the importance of putting those most at risk – including people relying on income support – front and centre of this discussion. This included highlighting our serious concerns about the role of automation in the current administration of employment services for people on Jobseeker Payments. This must stop – decisions impacting people’s incomes that should be made by public servants in Services Australia. 
  • ACOSS also highlighted the need for government funding to enable community services to take full advantage of the potential of AI to streamline administration and improve access to services as recommended by the NFP Blueprint. 

Secure and affordable housing: 

ACOSS welcomes the Treasurer’s identification of housing as a key priority area for reform. 

  • We must set ambitious targets for investment in social housing – ACOSS and others support the National Housing Supply Council’s goal to lift social housing to 6% of dwellings in a decade and 10% over two decades, both to prevent homelessness and to put a floor under supply of affordable rental housing. 
  • Dr Goldie urged reform to ensure that renting also becomes a decent, long term housing options. Whilst some progress has been made under the Better Deal for Renters, she urged more progress, which will include better rights for renters and encouraging more long term institutional investors into long term housing.  
  • Other necessary action to expand supply of affordable rental housing includes inclusionary zoning and removal of unnecessary regulation holding back home building. However, any pause in the National Construction Code – which is so important in setting up to date standards for energy efficiency and disaster readiness – should be temporary and short. Governments should remove unnecessary regulation while strengthening the rules that are really needed. ACOSS notes the Treasurer’s acknowledgment of the concerns voiced in the room about pausing further updates and value his commitment to work constructively with Government to identify priority updates. 
  • ACOSS will continue to press for curbs on investor housing tax breaks such as the CGT discount and negative gearing, which encourage speculative investment in housing and lift its price for everyone, while adding little to supply. The other areas of tax reform that are pressing including redesigning the tax concessions associated with superannuation and the tax treatment of private companies and trusts. To build back confidence in our personal income tax system, we need to make sure people with significant wealth are paying their fair share.