Economic Survey of Australia - Press Review

1. Summary

The Media coverage of the OECD Economic Survey of Australia (published 3 February 2005) focussed on a number of weaknesses identified in the report, although the Financial Times commented that it would be hard to criticise the country’s recent record on reforms.

The Australian highlighted the survey’s call for more competition reform, for the top tax rate to be cut and its warning that rising health costs were the main threat to public finances.

The survey’s recommendations for tax reform were also picked up by most of the Australian media, including the Australian Associated Press (AAP), The Canberra Times and The Courier Mail (Queensland). The survey calls on the government to cut Australia’s top marginal tax rates as well as raise the threshold at which the maximum marginal tax rate cuts in.  But The Age was more critical, accusing the OECD of “mixing its tax messages”.

Political and business reactions to the survey’s recommendation that telecommunications company Telstra should sell its shareholding in the pay-TV group, Foxtel, were reported by The Australian, AAP and The Mercury (Tasmania). The Australian commented that the reforms called for in the survey to encourage competition and increase labour productivity could no longer be avoided. 

Referring to the survey’s concern that if policies remain unchanged, population ageing will slow income growth and increase the government deficit, the Financial Times said there were good reasons to be confident that the “sensible” reforms advocated by the OECD would be forthcoming.

Elsewhere, Neue Zürcher Zeitung focussed on the survey’s warning over the economic impacts of an ageing population while the Wall Street Journal highlighted concerns that the existing tax structure posed a disincentive to work.

2. References

Financial Times
02/02 - “OECD says Australia needs reforms”
03/02 - “Hard to criticise: Australia's record supports hope for further reforms”
03/02 - “Australia must reform, says OECD”

The Australian
03/02 - "Cut high tax rates: OECD"
03/02 - "Telstra 'should sell'Foxtel shares"
09/02 - "More competition reform is required"
14/02 - "Health system going for broke"

Australian Associated Press
03/02 - "OECD report a wake-up call to Howard Government: Swan"
03/02 - "Pressure mounts on Costello to reform tax system"
03/02 - "PresTelstra rejects calls to sell shareholding in Foxtel"
03/02 - "Howard flags more tax cuts could be possible"

The Canberra Times
04/02 - "Labor tax relief plan for higher earners"

The Courier-Mail
04/02 - "Treasurer rejects OECD warning on reforms"

The Age
06/02 - "Calculating the (minimum) wages of sin"
07/02 - "OECD mixes its tax messages"

The Mercury
04/02 - "Telstra shruggs off Foxtel call"

Neue Zürcher Zeitung
03/02 - "Australien surft auf einer Wachstumswelle"

Wall Street Journal
02/02 - "Australia's Success Story"