The Treasurer claimed that the 2026-27 budget was the most reformist budget in 25 years. This is probably an understatement.

Subscribe now for unlimited access.

Login or signup to continue reading

Depending on how you view the introduction of a GST reform that had more holes than Swiss cheese and only abolished a few state taxes, it's probably closer to 40 years.

Much like the ageing millennial who hasn't been out on the town in a few years, Australia's panicked journalists and commentators seem a bit out of practice in remembering how the process of reform works.

Reform involves three basic steps: convince the public there is a problem that needs fixing, put forward a reform plan to fix it, then iron out the problems that emerge.

Step 1 was finished decades ago. Everyone knows there is a housing affordability crisis. Everyone knows we have big problems with intergenerational equity, budget deficits and weak productivity growth, with a broken tax system at the core. Negative gearing, trusts and CGT reform has been a feature of national debate for 10 years.

With Step 1 finished, we've been stuck at Step 2 for decades now.

Finally, a government has responded to decades of complaining from the financial papers about a lack of reform. It has put forward the most ambitious budget in almost half a century to help fix these problems using the levers at its disposal: removing distortions in the tax system, while supporting states (where it can) to increase housing supply.

We are now in Step 3: we identify how the proposed reforms can be improved economically and politically.

This is what the government is doing in acknowledging that the proposed reforms sit awkwardly with small businesses and startups, for example, or its hinting that it will direct more budget savings towards lower taxes on........

© The Examiner