The Australian economy has enormous potential for sustainable development. It is currently being stifled by policies that reward vested interests and assume business-as-usual approaches can continue indefinitely. We need a coherent, long-term set of policies for building a diverse economy that can thrive in a resource- and carbon-constrained world.
‘Greening Our Economy’ will identify how we can create the policies and conditions for Australia to build a sustainable competitive advantage. Results of the work will be released in stages, focusing first on those economic sectors with the most potential for policies to be reshaped to support sustainable economic development.
Upcoming research project:
Taxing for Patient Capital
Our current tax system sends perverse signals that encourage short-term, speculative investment in industries as diverse as housing and wine, as well as the broader stock market. This distorts industry structures and leaves many small investors and retirees exposed to the risk of capital losses.
Can tax reforms encourage more patient capital investment? Can we align tax incentives more closely with Australia’s long-term needs, such as fixing the infrastructure deficit or greening our economy? What other institutional arrangements are needed to encourage investors to think and act long-term?