Part 4/8:
Labor's announcement of a productivity roundt appears to be a strategic move to normalize the idea of higher taxes. Critics argue that this effort creates a narrative where tax hikes are seen as a consensus-driven, necessary reform, rather than an ideological or poll-driven outcome of the government’s agenda.
Former Treasury Secretary Ken Henry, a central figure in shaping previous tax policies during Labor’s tenure, underscored this perspective. He warned that if economic growth and productivity aren’t significantly boosted, the only remaining course would be to raise taxes substantially—by several percentage points of GDP. Henry’s candidity underscores the seriousness of the government’s potential shift towards taxation as a primary tool for fiscal stability.