Economy

The coronavirus-induced panic that has caused the great run on toilet paper is not confined to the herd instinct of millions of shoppers. Fear of being the first government to preside over the end of 30 years of uninterrupted growth is gripping Scott Morrison and his entire Coalition outfit.

A part-time cleaner earning $18,000 a year will receive zero tax concessions for their compulsory superannuation contribution; meanwhile, a chief executive of a big bank can get tens of thousands of dollars every year in taxpayer support for their “retirement nest egg”. This is the strange world of Australia’s retirement income system: a world in which those who need the most get the least.

Who else but that old master of political imagery Paul Keating could sum it all up so colourfully? The Australian economy is stagnant, and he says the Morrison government can’t do anything about it because the Liberal Party has a ‘surplus virus’ in its bloodstream. The former treasurer and prime minister, credited as a great economic reformer, says ‘the economy is … like the car idling at the lights and waiting for the lights to turn green to take off again’.

The Morrison government is scrambling to persuade the nation it really knows what it is on about and how it will achieve it. The drought and a stubbornly sluggish economy aren’t helping. Nor is Morrison’s new best mate, Donald Trump.

In a frank admission – rare for prime ministers, who like to impress they are confidently in charge – Scott Morrison has revealed what keeps him awake at night. That is the feud between our biggest customer and our closest friend. The problem for him is he doesn’t seem to have a clear idea of what to do about it, and as such it is a nightmare for the nation.

The Trump presidency has been a wild ride for its ally Australia, and is becoming dangerously more bizarre by the day. Canberra is being railroaded into a confrontation with Beijing, which is clearly not in its economic or strategic interests. The Morrison government knows as much and is struggling to deal with America’s ambition in a way that assures Australia’s prosperity and security. The degree of difficulty became apparent at last weekend’s Australia–United States Ministerial Consultations in Sydney.

In politics, so the wisdom goes, ‘perception is reality’. And this week, with the opening of the 46th parliament, the perception and the reality of the federal election hit home, particularly for the vanquished Labor Party. But for the victors, not everything is as it seems.

From New York, Josh Frydenberg aimed a political missile with laser-like accuracy. ‘Earth to Anthony Albanese: Labor lost the election. Now it’s time to support the Coalition’s tax cuts in full.’ It hit the opposition midship, striking at the vulnerability dividing Albanese’s shadow cabinet and caucus. From Germany, Finance Minister Mathias Cormann added his firepower. He accused Labor of playing tactical political games with the economy and with people’s livelihoods.

The Liberal Party of Australia is now a LINO party: Liberal In Name Only. It’s a fitting acronym. After all, lino was Australia’s favourite floor covering in the 1950s … After Labor’s unexpected election loss, our renewal may be found in an unlikely spot – welcoming not only those inspired by egalitarianism, but also those motivated by social liberalism.

The tax cuts impasse between the government and the opposition has opened the way for a familiar play from the senate crossbench. As Scott Morrison was basking in the warmth of a holiday in Fiji, it was the Centre Alliance senator Rex Patrick who was taking full advantage of a moment in the sun.