Yes, with monetary policy maxed out--it's usually a pretty indiscriminate weapon--the Henry Tax Review is looking better by the day if we are to re-stimulate the economy. As Australia's superficial, bland, beige politicians are not up for it, the impasse and economic decline will unfortunately linger.

Well, smaller govt is the thing we need to restore the economy, and indeed, create not only balanced budgets which are good for the economy, but economy boosting surpluses as well!

And if we would have smaller government, we have just one real option; and that one real option is to entirely jettison costly middle tier or government and save 70 billion plus P.A; and before a single service is rolled out!

All of which can be provided by current federal/council staff equipped with more fibre to the terminal technology/video conferencing etc.

Complimented by a return to voluntary unpaid regional boards, peopled by recently retired or semi retired (bored out of their brains) professionals; and much more regional autonomy in both health and education; which could provide saving of around 30%, which might instead, be redirected to more coalface funding, comparable bench marking and best practice outcomes, and or excellence trumping par for the course, moribund mediocrity!

And given just that outcome, rely on a seriously reformed and simplified tax system to keep inflation or stagflation under complete and much more rapid control, which would allow the RBA to concentrate only on its mandate; or, boosting our economic performance, arguably with the lowest possible set and forget, interest rates!?

Over inflated house prices must be dealt with appropriate legislation, and hardly possible, when so many self serving pollies have so much of their own money tied up in income earning real estate? What do you propose the RBA do about that?
Rhrosty.

The RBA just obeys the Bank of International Settlements. Lowering rates will do nothing in this environment because people have lost faith in the system and we are at the end of our fiat system of debt money creation and the elites know it.

James Rickards in his book 'The Death Money' said that every 40 yrs or so,our fiat system collapses because it takes progressively more debt to create growth. Back in 1970 before they went off the gold standard a $1.00 of debt created over $3.00 of growth. However debt like interest is compounding and now it takes $3.00 of debt to create a $1.00 of growth. They know the system will collapse.

Solution ? China will back the Yuan with gold and this will be the new world reserve currency. Can we trust them or will they become just another Rothschild Dynasty that creates all our money as debt and we become more enslaved.