Microeconomic Policy

Post-MER average growth

3.5%

Post-MER labour productivity

3.2%

Post-MER multifactor productivity

1.8%

Hayne Royal Commission (ASIC as timid regulator)

2018

Switch to floating exchange rate

1983

New foreign banks entering Australia

16 (HSBC, Citibank)

RBA open market operations introduced

1988

Australian tariff rate in 2024

0.5%

Whitlam across-the-board tariff cut

25%

Effect of a 10% tariff drop

Increases real GDP by 0.6%

Share of imported goods that are tariff free

60%

Real price fall 1985–2011 in TCFs and PMVs

54%

National electricity market created

1998

AEMO price cap intervention

2022, due to supply shortages

Telstra privatisation stages

1997 and 2006

New telecom carriers after

1992 (Optus, Vodafone)

Real price fall of phone plans

30–40%

Telstra market share

50%, acts as oligopoly, prices rising since 2022

End of TAA/Ansett duopoly

1990

Qantas and Virgin market share

Qantas 65%, Virgin 30%

Sydney Water corporatised

1995

Sydney Water impact

Consumers would pay 39% more if privatised; $2.8 billion revenue

Australia Post corporatised

1989

Australia Post losses

$200 million in 2022-23, improving to $88.5 million loss in 2023-24 (Post26 strategy)

GST replaced Wholesale Sales Tax

2000

Top marginal tax rate

49% in 2000

Stage 3 tax cuts

From July 2024, saving $1,800 in tax per year

Stage 3 bracket changes

32.5% ($45,000–$120,000) now 30% ($45,000–$135,000); top bracket $180,000 to $190,000

Company tax reduction

36% to 30% (1999–2002); SMEs at 25%

US company tax rate

21% since 2018

National Competition Policy introduced

1995, enforced by ACCC

ACCC actions

2024 Woolworths and Coles; 2019 sued Optus over false notices to 139,000 customers

NCP impact

Boosted GDP by 2.5%; coal prices down 42%, telecommunications down 20%

Australian productivity last 5 years

0.46%, down from 3.2% in the 1990s

2023 Intergenerational Report growth prediction

Average 2.2% over the next 40 years

Productivity Commission on national income growth

80% came from productivity growth

Australian political instability

7 PMs in 16 years, 3-year terms

2026 tax cut

Lowest quintile rate from 16% to 15%

CGT reform

50% discount replaced by minimum 30% tax on capital gains with inflation adjustment

Productivity Fund (2025/26 Budget)

$900 million, estimated to boost GDP by $45 billion

NDIS growth reduction

$37.8 billion over 4 years (Thriving Kids program maintained)

Future Made in Australia package

$22.7 billion over 10 years; $2 billion in green hydrogen

Gillard carbon tax

Repealed after 2 years

Rudd's Carbon Pollution Reduction Scheme

Blocked by senate in 2009