Hard to fault the historical record or the critique Julie. However, your side's record, is by no means perfect in this area, with the US FTA agreement a glaring case in point, where the US still retains a huge trade weight advantage, and something that ought to be renegotiated or junked!
We would likely get better terms of trade with China, India, Korea and many other parts of Asia.
Despite your rosy depiction, our manufacturing base is still mugged by the high AUD, remains in the doldrums and needs urgent remedial action.
Germany stands almost alone as the stand-out European economy, or stable economic Island in a sea of financial chaos.
And, that's down to the fact that a pragmatic leadership refused to join the rush to convert their economies to service based and instead, chose to not only keep and rely on a manufacturing base, but quite hugely embellish/advantage it with innovation and R+D.
Korea has gotten this message and is now spending around 5% of the GNP on R+D!
I don't believe either major party has anything like a solution. With your side planning to further contract the economy, by living within our means; those means hugely compromised, by quite massive tax avoidance! Continued.

Agree that the carbon and mining taxes be repealed, but only as part of quite massive, long overdue tax reform, that jettisons the current tax collection methodology in its entirety, and replaces all that convoluted complexity, with a single, stand alone, UNAVOIDABLE expenditure tax; collected via the banking sector.
Set at just 4.8%, it will raise considerably more revenue, end the destiny of demography, remove/fix the current structural deficit,and build annual and ultra reliable surpluses, without in any way whatsoever, mugging or contracting the economy. Just the opposite!
Look, company tax net collection currently ranges in real terms, between 1-4%, with around 40% of our international guest corporations, reportedly, paying no company tax to anyone.
The trade off in the proposed reform, would be the removal of all compliance measures, which currently rips around 7% from the averaged bottom line.
This reform, would, after quite massively increasing net tax revenue, improve the average bottom line by around 30+%, and household disposals by an averaged 25%; making a non-contributory 15% super, immediately available/doable. And, all courtesy of current avoiders! JUSTICE!
With a single stand alone expenditure tax in place, the tax rate alone, can be marginally adjusted, to much more immediately control inflation or stagnation; meaning, the interest rate component can be permanently adjusted downward to historical lows, or until the AUD falls to its natural value, around 65 cents.
After that, very low cost publicly provided power is the final key, that will send the high tech industries of the world queuing to relocate to these shores.
[Read, Thorium, cheaper than coal.]
And given they will have significant international markets and marketing mechanisms well and truly in place, a quite massive boost to internal incomes and tax receipts; and, value added export commodities and markets!
It's clearly not a case of can't Julie, just one of won't!
Or if you will, the constraints inflicted, by a self imposed ideological straight jacket?
Rhrosty.

Rhosty, that was a very interesting couple of posts. I reckon you should write an article on it. Put it out there. I would be interested to know more about what it is and how it would be collected; also you should cover the downsides to it as well.

Also, if it would result in an increase of tax receipts for government, surely it should be set at a lower rate? You're not saying we don't have enough of it for gossake are you?

JKJ, If you visit the Graham's archives, you will see I've written a veritable article.
It will collect more net tax than is current.
Necessary, given a structural deficit of at least 30 billion per. Conversely, we can do what other nations have done and kick the debt can down the road, until it comes back to bite us in the financial rear end.
If we collect a fairly substantial surplus, and then invest that surplus in a sovereign fund, our economy and financial position, will simply go from strength to strength!
The Govt will not have to borrow any money, meaning more funds available to private enterprise and at lower rates.
Given no need for any reconciliation, we've as good as added 400 billion to treasury coffers, given money coming in is immediately available, rather than having to be held up to twelve plus months!
An expenditure tax is collected as money exists any australian account.
Most bank main frames are already programmed to lift various sums, i.e.,fees charges, stamp duty.
Adjusting them to automatically collect money and forward it to treasury, should be just a matter of writing a program.
The black economy will be brought into the net, when we fully transition into a cashless economy.
The extra income is raised by including current avoiders, all of them, in the net.
The unavoidable nature of the proposal means business houses can recoup around 7%, which is currently ripped from the bottom line by compliance issues; which generally, exceeds the proposed tax take. The tax rate can be marginally varied, to alone control inflation/stagnation; meaning, interest rates can be permanently lowered until the AUD reaches it natural value, around 65 cents, to turbo-charge the non mining economy.
Can you imagine life without fuel excise, PAYE, PAYG, Payroll tax and the ubiquitous cascading GST etc/etc!
The states would lose the GST, but get more back as a direct federal funding model for education and public health.
Downsides? Well there will be some for tax avoiders, the ATO, which would along with most tax practises, be rendered redundant.
Rhrosty.

Footnote: We do need to collect more net tax! Because, for decades we've systematically and seriously under-funded infrastructure, to the eternal detriment of our economy and lifestyles.
Imagine what very rapid rail, would do for western Sydney. And rezoning some of the necessarily resumed land along the line to residential would all but pay back necessary capital outlays!
Yes, and a few dozen land holders would be seriously p-ssed off! But, wouldn't have much of a case, if they received full market value for undeveloped rural land?
Alternatively, tunnelling under developed areas could be cheaper than land resumption.
A very rapid rail link along the entire eastern Brisbane/Melbourne corridor, would negate the need to build more airports.
Rail remains far and away, the most economical means of bulk freight forwarding.
Collecting previously avoided tax, would make these and many other projects immediately affordable, including publicly provided, carbon free, cheaper than coal, thorium power.
We are blessed with embarrassing riches of the stuff!
The Govt owner doesn't have to get into the business of running businesses; just tendering out contracts, the way they've always done!
Some of which could be building contracts, labour, service and management provision!
Rhrosty.

Rhosty, what is there to stop the black economy in your proposal ?
It would mean that people may be more intent on keeping out of the official system ?
Have a completely cashless system may work, although bitcoin has been
suggested as a way around that.

Then the town of Totnes in the UK has its own currency.
You said;
Imagine what very rapid rail, would do for western Sydney.
And rezoning some of the necessarily resumed land along the line to
residential would all but pay back necessary capital outlays!

The land along the line is already built upon. Anyway the distance is
too short for the HST. We have already missed the boat for the HST as
the cost for the distance is to great and the population is too small.
We could, just, afford a fast enough system, say average 150 kph.
Not sure how aware you are on this HST subject but it has to be
almost a line of sight construction and dedicated to HST passenger trains.

I don't think in a time of decreasing growth that it can be afforded.
We will have our time cut out to avoid going backwards.

Hi Bazz, nothing we have in our current laws stops the black economy.
However, smart cards are just around the corner.
Changing the colour of money from time to time, in new print runs, will oblige those storing their savings under the mattress to bank their funds in order to access new banknotes; given the old notes will eventually become worthless.
Your point about western Sydney is well made.
Thankfully, much of Sydney is built on sandstone and tunnelling with modern machines, is relatively easy, and a lot less costly than the old labour intensive method, or rusuming urban land.
These machines should be purchased and then reused again and again, to extract the full cost benefit.
If one owns a machine or machines, then tunnelled cross river links etc, becomes nearly as cost effective as bridges, fly overs etc.
My reference to very rapid rail paying for itself, by rezoning, is in reference to a very rapid rail link linking Bris-Melb.
My preference is for a magnetron system linking far flung suburbs to city central CBD's; run out as a fully underground systems in tunnels or shallow trenches.
These super silent systems run on and are powered by a magnetic field, have few if any moving parts to wear out or break down, and quite capable of speeds up to 900 KLM's PH!
I would build permanent loop systems; of many loops? This would eliminate the possibility of extremely fast, head on collisions!
These very rapid trains could be serviced by monorails/moving walkways.
Yes I know, we are talking about the most expensive options.
However, all could still be providing very effective service a hundred years from now, after repaying all capital outlays, many times over.
So, do it right the first time.
Besides, my very simple single tax system would raise more than an additional 100 billion PA!
Therefore, it isn't a question of whether or not they are affordable, just where they should be built, to best serve the greatest number!
Cheers Rhrosty.

Lot of people in Cyprus wishing they had stashed their money under the mattress Rhosty. :).

Julie lays out the challenge for us voters this year. As bad as the Labour Government is the Libs are even worst. There is no Howard and Costello anymore.

Julie as someone who works in the mining and steel industry neither the Carbon tax or the mining tax feature highly in our internal planning. The high Aussie does. You admitted you can do much about the later. So what your reality saying is your government would fiddle about the edges differently.
As someone without kids how about stopping all this middle class welfare your lot introduced last time you were in power.

That fact that both sides think a family on fives times the average weekly wage is on struggle street does not bode well.

The co2 tax was overhyped by the opposition but the reality is that it
is a very pernicious tax.
It is like one of those summer days when you want to do a job outside
and it looks like rain and when you get outside, it is raining but very
lightly. You figure you will do the job as the rain is very slight.
You get the job done and come inside and find that you are sopping wet !

That's the co2 tax for you, it trickles down in little bits every time you spend money.

Eyeinthesky:
A lot of people in Cyprus, probably wish their Govt owned the banks, that they had been properly regulated and not used as a veritable laundry for Russian Mafia money.
They probably wish that the net return to their banks had been greater than the interest they paid on deposits!
And that a simple expenditure tax had been imposed several decades ago, so that the Govt had the actual means to live within!
They probably wish their little Island hadn't been used as a tax haven, and or, that that service model hadn't been virtually their only industry!
Finally, they probably wish they had bought a few bars of gold, in order to hedge against the very eventuality, they are now experiencing!
Cheers, Rhrosty.

Today, economic globalization aims at increased trade throughout the world. At first sight, this might seem to be a benefit. However, laws preventing the exploitation of labor are not universal. The same unspeakable conditions experienced by workers in factories and mines during the early phases of the Industrial Revolution in Europe can be found today among factory workers in Indonesia.

In many developing countries today, industrialization involves slave-like working conditions. Meanwhile, in the industrialized countries, workers may lose their jobs because they cannot compete with underpaid labor in the Third World. Large multinational corporations are tending to move their operations to regions where salaries and living standards are very low.

No, globalisation is already on the way out.
The cost of transport fuels and rising labour costs in Asia are causing
the return of manufacturing to the original countries.
Examples of this are steel making and furniture making.
Lower cost bulky products are the first to return due to the escalating
cost of container transport. Asian refineries are cutting back on
heavier products such as bunker fuel and ships are purchasing diesel
/bunker fuel mixes.
There are significant shortages of diesel in Asia.

As the world economies wind down international trade will also decrease.
Everything will eventually become local.

An aside, last year I purchased a lounge for my son and I asked the
salesman/manager where it was manufactured, he said in Sydney.
I asked about the rest of the furniture in the shop.
His reply, everything except that table over there are Australian made.

Our problem will be cranking up our local manufacturing.
Fortunately, it won't happen overnight, but it will happen.

Well Rhrosty, yet another reason to get some of the pretty yellow metal, & bury it in the garden. Bet they can't change the colour of that.

A very well informed and cogent post BAZZ!
Wages inflation in China is currently running at around 20% PA.
And fuel is just going to become more expensive, as we transit through peak oil and a Govt resolutely determined to do nothing to change anything!
Everything that trundles along our highways, byways and railways, require fuel; as does every tractor or harvester, that are used in the mass production of food.
And given population increases develop largely as predicted, the demand for food can only increase exponentially, with a forecast additional demand of around 80% by 2050!?
Were I running the country, and collecting an additional 100 billion plus PA, I would commence to build an inland shipping canal forthwith.
Shipping remains the least costly way to move bulk freight, with rail following a close second overland.
Therefore, the ships plying the new inland shipping canal, would be purpose built, roll on roll off, nuclear powered ferries.
Moreover, they would also be submersible, so as to avoid worsening weather conditions and brigands in small boats!?
Buried ag pipes wrapped in membrane filters, would allow some of this gravity fed water, to support various forms of agriculture, thanks to the better than pumps ability, of some plants to draw massive quantities of water.
Salt, drought and frost tolerant native wisteria, is a soil improving legume that fixes nitrogen, has a very deep taproot, and being a perennial, produces crops of high protein, oil rich beans, for up to 7 years, before being needing replacing.
The oil is eminently suitable as bio-diesel, and the ex-crush material, would support various forms of highly profitable feed-lotting or fish farms.
If some or all of that agriculture takes place under glass, most of the pristine evaporate can be collected and reused for any other purpose, including progressive reafforestation of an arid inland?
Which if done on a large enough scale, would eventually begin to recharge weather systems and spread monsoonal weather systems, progressively further and further south!
Thereby allowing us to produce more, increasingly valuable commodities, for our free trade markets.
Rhrosty.

Ah Hasbeen, never heard of white gold then, which I understand may be an amalgam of platinum and gold?
In any event, and given its use as a catalyst, and or, as an inert refractory material, even rarer platinum, is likely to outperform gold, as a hedge against inflation.
Moreover, metal detectors tuned to detect gold, might well miss platinum, which might make it a safer option to bury in any backyard.
My paternal Grandfather allegedly buried 10,00 golden coins somewhere on the family farm?
Thus far, hordes of fee paying prospectors, some equipped with the very latest in metal detecting gear, have failed to find it?
Rhrosty.

Now that we are now subject to having our bank deposits confiscated as
I think Australia signed the 11th November 2010 G20 agreement;

http://tinyurl.com/d2hzjrn

I have wondered what I should do if things looked dodgy.
Is gold really the best move to make ?
After all no one can eat gold.
Would land be a better option ?
At least you could grow food on it.

Here are the critical bits out of the article linked above;

Next, in Seoul 2010, “G20 leaders endorsed this framework and the timelines and processes for its implementation.”

That framework is set out in the FSB’s “Key Attributes of Effective Resolution Regimes for Financial Institutions” (pdf).

On the 11th November 2010 the G20 conference in Seoul agreed to a document that set up
the procedure to seize the funds of depositors amoungst others.

Preamble

The objective of an effective resolution regime is to make feasible the resolution of financial
institutions without severe systemic disruption and without exposing taxpayers to loss, while
protecting vital economic functions through mechanisms that make it possible for
shareholders, secured and unsecured creditors to absorb losses in a manner that respects
the hyrachy of claims in liquidation.

What is of serious concern though, is its power to “transfer or sell assets and liabilities,
legal rights and obligations, including deposit liabilities and ownership in shares,
to a solvent third party,” … without consent -

Under General Resolution Powers

Paragraph 3.2 vi states

Transfer and sell assets and liabilities, legal rights and obligations. including
deposit liabilities and ownership in shares, to a solvent third party,
notwithstanding any requirement for consent or novitation that would otherwise
apply (see key attribute 3.3);

>->
The question is, has Australia agreed to or indeed ratified this G20 agreement.
It would appear that this agreement is the basis for the recent Canadian legislation.

It seems diabolical to me and changes the meaning and perception of banking.

Bazz if we are talking very bad, land is only any good if you can hold it. That would mean guns, & people who can use them.

If governments decide to take your bank deposits & super, why would they not feel free to take your title to any land that might be "YOURS".

I am really only thinking in terms of the Cyprus situation where you lose access to your money, or the US where money printing is diminishing the value of any bank holding with inflation. In each instance your gold is not only in hand & available, but appreciating at very least at inflation rate.

Should law & order really break down, you'd better be poor. Gold, land, food or anything else would make you too attractive a target.

When money is short, everything becomes very cheap. If I was in Cyprus right now I would be looking for the fire sales of some very nice cars & boats. If no one has money they can get at, they will be worth practically nothing.

The first time I went cruising in the yacht, I found many people who had loaded their boats with the best sporting equipment. Some had run out of cash, & were practically giving this stuff away for eating money. The next time I had cash, & bought great scuba gear, an underwater camera, top shotgun, & a new outboard, all stuff I could never justify at new price, for about 15 cents in the dollar.

Even if you can't eat gold, I reckon if you have it, it will make finding food much easier.

OK Hasbeen, well they drive on the left in Cyprus so it might be quite
practical to buy a nice cheap car there.
Years ago it cost about $1500 to ship a car from the UK to here, but
it might be a bit dearer from Cyprus.
Still it could be a real bargain.

Oh, they are giving the depositors shares in the bank as compensation, hmmm.
Might make nice wall paper in a few years time, like your 1910 Russian
bonds for the rail line from Moscow to Vladivostok.

When you are next in town go to the Library and see if they have a
copy of James Kunstlers World Made by Hand.
It is a novel setting the scene like you suggested. Very interesting.
Libraries can borrow from other libraries if they don't have it.

At the end of the American civil war, southern land holders were able to grow some food, but regularly had it "confiscated" by roving gangs and the displaced.
Those that resisted often forfeited their lives!
Those that had buried a few hundred double eagles, fared a lot better; and, were able to buy all manner of life preserving goods, for a fraction of their former or real value.
Similar stories abound the great depression; albeit, there seemed to be less crime and more work for food, associated with that particular event?
Land is good, as is reliable water!
And indeed, a large enough group to ensure you keep what you want to keep from what you produce.
And it's not just human thieves one needs to worry about, given all manner of pests and parasites could threaten ones survival; if one were ever confronted with circumstances, where survival became the major or only goal, and govts stopped spending money on pest and parasite mitigation measures.
A couple of polycarbonate clad glass houses would therefore, be a good investment in survival strategy!
However, a few dozen gold coins distributed in various known only to you locations, would be good, but particularly; in say post depression/post war circumstances, where paper money became more or less valueless?
And given we humans seem to fail to learn the lessons of history; history tends to repeat itself?
Rhrosty.

Guess I'm lucky, or is it wise, or perhaps stupid Rhrosty? Of my 20 acres 6 are deep black soil, of fair fertility. They are the ones adjacent to the river. I also have a greenhouse, currently covered in white Hypalon, to reflect the heat, making it more suitable for the cars I keep in there.

The green house could be reconverted, I've saved the cover, but it is 300 meters from the river, & about 85 meters above the water level. Even the black soil flats are about 23 meters above the water level, so with out diesel for a pump, you would not grow a great deal, except in a particularly wet year. Black soil takes a hell of a lot of water to do much.

I laugh when I hear talk of us running out of arable land. In my area we have some thousands of acres of river front land. A little is used to grow lucerne for the horse owners & a little grows chop chop, green feed for the feed lots. A bit more is used to grow turf for instant lawns, but most does nothing more useful than just grazes a few horses.

Even the dairy farmers have given up. Doing anything productive with land in Oz today is a recipe for bankruptcy.

You have probably heard the old one about how to make a small fortune out of horse racing, "start with a large one". Well mate that goes for just about any kind of horticulture or agriculture in Oz today. Only masochists do it.

Rhrosty you stated "Ah Hasbeen, never heard of white gold then, which I understand may be an amalgam of platinum and gold? In any event, and given its use as a catalyst, and or, as an inert refractory material, even rarer platinum, is likely to outperform gold, as a hedge against inflation."

Perhaps you really believe this is true, however you may wish to consider that good old Silver is actually more rare than Gold!

Given the US is now openly, through their central bank and the sheep like following of the US main stream media, promoting that gold is 'so over valued' the majority of investors have swallowed the red pill and are beginning to dump both gold and silver holdings.

Notwithstanding this western stance, China, Russia and other smart investors are now buying both gold and silver at what can only be stated as a very good price. China, like any good investor, is buying in the dips and holding.

China is likely to release 'official' gold holdings toward the end of this year or early in 2014, once they do, the price of gold will hit $3-5,000, perhaps higher.

The US, like most of Europe and much of the broader global economy is in the process of debasing currency at the expense of the 99%. Hold faith in Gold and Silver over the next 24 months and you can make a fortune, pay off any debt and exit the 'fractional reserve banking' system.

This is the best advice I can give you given private debt to GDP ratio's in Australia and the growing need by governments to further tax individuals and now a play against 'our ever so safe' superannuation.

The Ponzi scheme is nearly up, you all have some time left but not much.

Be warned.