2025-12-31 00:55:29 +1100
To: The Prime Minister, All State and Federal Treasurers and Ministers, The Fair Pay Commission and Myself
FORMAL SUBMISSION: URGENT RECALIBRATION OF AUSTRALIA'S WAGE AND SOCIAL POLICY FRAMEWORK
This submission presents compelling evidence of a structural policy failure dating from the introduction of the Goods and Services Tax (GST) in 2000. Australia implemented a permanent structural tax without recalibrating the permanent structural formulas determining income adequacy, creating a 24-year anomaly that now undermines economic stability, social equity, and fiscal sustainability.
We urge immediate action to implement a Low-Income Essential Cost Index (LECI) and recalibrate Australia's wage and compensation systems to reflect post-GST economic reality.
Good governance requires acknowledging and correcting historical errors. The 2000 GST implementation created a structural anomaly that has compounded for 24 years. This anomaly now manifests in:
This submission is endorsed by the principles of good governance, economic justice, and evidence-based policy making. We request formal consideration in the Fair Work Commission's Annual Wage Review and coordinated action across all levels of Australian government.
Why is this important?
We demonstrate that:
· The minimum wage adequacy benchmark remains at approximately 36% of required living standards, where it should be approximately 50% post-GST
· This 14-point gap creates systemic underpayment of low-income Australians
· It generates unfunded liabilities in workers' compensation schemes
· It produces impossible compliance contradictions between social security and injury compensation systems
· It results in significant revenue shortfalls for state and federal governments
Fiscal Domino Effect
Fiscal Domino Effect
Revenue Stream Annual Shortfall Cause
WorkCover Premiums ~$780 million Suppressed wage base
State Payroll Tax ~$1.5 billion Suppressed wage base
Federal Income Tax ~$6.24 billion Suppressed wages
GST Collections ~$2 billion Suppressed consumption
Total Estimated ~$10.52 billion/year
This submission provides the evidence, analysis, and pathway for correction. We urge all addressed parties to:
1. Formally acknowledge the 2000 GST anomaly
2. Commit to the LECI development and implementation
3. Begin the systemic recalibration Australia needs
The time for temporary fixes has passed. We must complete the social policy framework that should have accompanied the 2000 tax reform.