It would be an understatement to say that I'm "bearish" on the Australian economy. Suffice to say, I'm pessimistic regarding voter attitudes and economic maturity to address economic issues correctly.

Nonetheless, the following is my attempt at a more technocratic, shrewd but compromising economic policy platform. It seeks to address the following issues:

• the immediate cost of living crisis as well as housing crisis, which I contend is a supply-side issue,
• the medium term debt crisis that I predict will sharply gain in relevance as a major financial crisis for Australia in the following 1-2 decades (Our budget's contributions to debt repayments is to continue increasing without some major cuts politically to public spending [which will be politically untenable for quite some time]. Moreover, I predict that Australia's borrowing power is to decrease in tow thus exacerbating this),
• a lack of domestic savings,
• a (legislated) over-reliance on our capital account surplus for domestic financing,
• a lack of economic diversity, and lastly,
• an over-dependence on a low-productivity hospitality industry, and one I consider to be a "crutch" industry for domestic economic activity.

1. Impose a temporary 1% stamp duty on incoming foreign investment -> to decrease incoming foreign investment. The reason we want this is that we want the dividends and capital gains of the future successes to stay in Australia, this means Australia receives the initial benefit of foreign investment but then after this nothing else. Companies that want equity financing will need to search harder in domestic markets.

2. Work with the RBA to increase interest rates over the year, in gradual increments.

   1. This will increase mortgages repayments, exacerbating the housing crisis. This is to be matched with aggressive housing supply side policy to mitigate this, see below.
   2. Cause appreciation of the currency -> further disincentivise incoming foreign investment. Since the rates are increasing in multiple installments there is a sustained period of incremental appreciation. Furthermore, this appreciation promotes Australian investment overseas.
   3. Disincentive debt financing in relation to (domestic) equity financing. This is good since Australia's largest industry, mining, is primarily debt financed. We want to expand other sectors. Furthermore, mining will become less reliable as the world moves to renewables.
   4. Promote domestic savings in banks over expenditure. However, this drop in consumption is contractionary. a. Since we want an overall - but inflation conscious - expansionary policy, this is to be offset fiscally, see below. a. Interestingly, this reduction in aggregate demand is deflationary. However, since I believe this will effect essential consumer goods and services insignificantly, it shouldn't be deemed relevant to the cost of living crisis.

3. Slash corporate tax

   1. Incentivise domestic equity investment. Borrowing is comparatively disadvantageous due to the aforementioned increase in interest rates.
   2. Bolster the supply side of the economy, to increase the supply of goods and services thus addressing the cost of living crisis.
   3. Applying across the board, over all businesses, it also aims to enable and embolden diverse expansion of industries besides just crutch industries (mining, education, hospitality) and entrepreneurship
   4. Reward economic productivity increases. Pushes for business expansion into higher productivity potential industries, diversifying the domestic economy.
   5. This occurs all the while the international market has been positioned to provide less equity, thus equity must be sourced domestically -> long term benefits of this business growth benefit us.

4. Impose a dividend tax. In the above proposal of strongly cutting corporate tax, we intend on promoting long term, diverse, and domestic investment. However, Australia has franking credits, which tend to have the effect of conciliating yield seeking investment rather than capital growth seeking investment. Without removing franking credits entirely (which I in other circumstances I find quite shrewd), to compensate, a dividend tax would aid in disincentivising yield seeking investment. It must be noted that this must be announced long before its put in place to give investors time to prepare.

5. Impose a temporary VAT (to apply at the point of consumption, not in supply chains) on non essential consumer goods and services.

   1. To help offset the loss in tax revenue of the above corporate tax cut.
   2. Taxes Australia's domestic economy's over reliance on our low productivity hospitality industry and services economy.
   3. Not severely worsen the cost of living crisis, since groceries, non luxury clothes, energy bills, etc are unaffected

6. Reform property and capital gains taxes:

   1. Restrict the 50% tax exemption on capital gains to only apply for non-property assets. (Where otherwise it is a very good policy for promoting long term, non-speculative investments).
   2. Remove negative gearing entirely, replacing it with:
   3. A 100% tax exemption on newly constructed properties. It worked in New York City!

7. Vacant property tax on existing constructed properties -> short term drop in property prices from a sell off (as speculators leave the property market). No long term supply side concern due to not applying to newly constructed properties

8. Aggressively slash zoning laws -> enable developers and businesses

9. Temporary halting of yearly superannuation increases for youth -> cheaper young labour to incentivise employing young people and aids cost of living crisis