The shifting economy, budget situation and political need for a fresh agenda will force Scott Morrison and Josh Frydenberg to lay the foundations for proper tax reform.
Conservative Party leader Cory Bernardi had hoped for a Morrison victory on Saturday given Labor’s destructive socialist agenda threatened to wreck the Australian economy and said this morning, “As disappointed as we may be for our own electoral results, I truly believe that this election has been a victory for our nation and for decency.”
The Australian Financial Review reports, a false narrative has quickly emerged from the federal election result that tax reform is dead because the political class will be too timid after voters rejected Labor’s big tax shake-up.
But that view is over pessimistic. There is every chance Prime Minister Scott Morrison and Treasurer Josh Frydenberg will ultimately deliver desperately needed tax reform following their surprise election victory.
The softening economy, uncertain budget outlook and political need for a fresh agenda will force Morrison and Frydenberg to lay the foundations for real tax reform that business and economists are yearning for.
Beyond implementing an election pledge to flatten personal income tax rates and thresholds to be phased in over the next five years, Morrison may try to build Coalition and public consensus for a broader tax reform package to take to the 2022 election.
Senior Liberal Party figures have revealed that Morrison as treasurer was enthusiastic for substantive tax reform but was shut down by prime minister Malcolm Turnbull.
Morrison may yet show the courage to pursue simpler, fairer, lower and more efficient taxes that would lift the economy’s growth potential.