If you feel like you’re running hard but not getting anywhere, you’re not alone.
Australian living standards, after rising fast over the past three decades, have stalled, according to analysis by Deloitte.
This chart, showing average disposable income in Australia, tells the story:
“The world is paying less for Australian exports, and our baby boomers are retiring,” says Deloitte’s report about tax reform.
“That means two of the three big drivers of our living standards – the share of the population in work, and the prices the world pays us – are in reverse, leaving today’s living standards well shy of where past trends would have had them.”
Deloitte argues that the third potential driver of living standards is productivity.
“Unless and until Australia lifts its productivity performance, we risk a prolonged period of stagnation compared with our past performance on prosperity,” the report says.
The report studies fiscal drag or bracket creep, GST and company tax. Deloitte says reforms to all three are vital.
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