Shadow treasurer to tell financial summit election shows voters are worried about falling living standards and Coalition must focus on inclusive growth

This article is more than 4 years old

This article is more than 4 years old

The shadow treasurer, Chris Bowen, is warning the Coalition to heed the warning of its near-death experience at the election and listen to voters’ concerns about the economy.

In a wide-ranging speech to be delivered at the Financial Services Council’s annual leaders summit on Thursday, Bowen planned to call on the treasurer, Scott Morrison, to reset the government’s policy settings to account for the “disenfranchised and disillusioned” in Australia.

His speech notes say Australian living standards have fallen for eight consecutive quarters – the longest sustained decline in our history – and a vast bulk of voters feel as though they are not sharing the spoils of economic growth.

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Bowen planned to say Australia was not immune to the rise of rightwing politicians or protectionist economic policies, in a similar way to the US and Europe, and the Turnbull government ignored this global trend at its peril.

“People disillusioned by anaemic growth and growing income inequality are being sold simple messages that the answer to their problems and their nation’s problems is isolation; isolation from trade, isolation from immigration,” Bowen’s speech notes say. “A political debate is raging across the planet – open versus closed.

“The government tells us there is an economic transition under way, and it’s going well. The transition is undeniable. But its success is much more debatable.”

The Coalition must use the next three years to produce policies that will focus on inclusive growth, so that every Australian benefits, Bowen warns.

His speech says Labor’s policies already have that in mind.

He also pledges that Labor will willingly work with the government on “sensible and fair budget repair” but adds this means considering policies that will raise revenue by dumping tax concessions that benefit the already well-off.

“There are two pathways to building stronger surpluses that the government can pursue,” Bowen’s notes say.

“It can do what it did last time – pursue a new round of spending cuts, that it has no mandate for, as it did it in the disastrous 2014 budget – or it can begin pursuing structural budget repair that is fair through a combination of spending reductions and revenue increases.

“Reforming the capital gains discount should be a first order of priority for the government.”

He also calls on the government to end the uncertainty over its superannuation policy: “We remain and will remain deeply concerned and opposed to aspects of retrospectivity, as do several members of the Liberal party.

“As a matter of urgency, the government should resolve this area of their policy.

“We would be happy to work with the government on sensible changes which raise the same or similar quantum as the government has targeted but which don’t offend the principle of non-retrospectivity and which are workable.”

He also says Labor “remains committed” to reforming negative gearing and the capital gains tax concession, because the social dimensions to the affordable housing problem remain.

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Bowen also planned to call on Morrison to release a new economic statement within three months to clarify the government’s policies, saying voters could not wait until the next budget in May.

“Bring forward the mid-year economic and fiscal outlook and use it as an opportunity to end the confusion about government policy, as well as come clean on the current state of the forecasts,” his speech notes say.



Kelly O’Dwyer, the minister for revenue and financial services, was also scheduled to speak at the summit on Thursday.

She was expected to explain her role in the coming parliament term, and set out what she saw as some of the challenges, opportunities and priorities