Julia Gillard will want to get her story on East Timor straight, before calling an early election.

That’s why the Labor party, in Canberra, has been telling all who will listen that talks on a regional processing centre for boat people will proceed with East Timor and Indonesia this week.

Right now, Ms Gillard is vulnerable to criticism from all sides in this debate.

The Coalition is claiming that her Arafura solution confirms  the legitimacy of its own Pacific solution.

But refugee advocates are accusing her of “dog whistling” racists, who simply want to turn the boats back.

Calling an early election, before this debate is resolved,  would be very risky for Ms Gillard, despite her relatively good figures  in recent polls.

Tony Abbott’s charge of “amateurism” could easily take hold, after her clearly premature announcements on East Timor last week. That is the one Ms Gillard was at first forced to withdraw, before a clumsy attempt, later, to restore it.

So she will – probably – hold her hand, on the election date, for at least a little while yet.

She has had relatively little to say, though, over the issue which should be dominating the pre-election debate.  That, of course, is the state of the economy.

Gillard has said that her predecessor, Kevin Rudd, ran a good government, which went a little off track, in the row over the proposed resource industry super profits tax.

It is hard to avoid the conclusion that Mr Rudd was, indeed, unnecessarily obdurate in that debate.

Equally, though, its stimulus measures did much to protect Australians, after the global economic crisis struck.

The creation of some 353,000 jobs, over the past year, including about 200,000 full time positions, put that beyond doubt.

Certainly,  though, there were mistakes.  The worst of them was allowing reckless and incompetent operators install the ceiling insulation in homes, which caused several house fires and a number of deaths.

Sadly, though, Wayne Swan’s attempts to turn the debate back to the government’s economic achievements have so far failed to take fire.

As a graduate of the Kevin Rudd school of oratory, the Treasurer is simply not selling the government’s economic message.

That is a real danger for the government, which must face voters before the end of this year.

The Federal government has replaced its proposed super profits tax on the mining industry with a minerals resource rent tax.

The decision, announced jointly by Prime Minister Julia Gillard and her deputy Wayne Swan is a clear victory for miners, who bitterly opposed the proposed tax.

Ms Gillard will meet reporters in Canberra shortly, to explain the decision.

Meanwhile she and Mr Swan have issued a joint statement, which reads:-

“Today the Gillard Government is proud to announce a breakthrough agreement on improved resource tax arrangements that addresses the concerns of the resource industry.

The new tax arrangements will underpin major economic reforms that will strengthen our economy so we can move forward together with confidence.

These arrangements will fund an historic boost to superannuation, new and better infrastructure, and business tax cuts including an up-front tax break and less red tape for small businesses to help them grow and thrive.

This agreement provides certainty to the resources industry, to mining communities right around the country, and to the broader Australian economy.

It sends a very clear message to the world that the Australian resources sector is strong and its future is secure.

The breakthrough agreement keeps faith with our central goal from day one: to deliver a better return for the Australian people for the resources they own and which can only be dug up once. It is the result of intense consultation and negotiation with the resources industry.

The improved resource taxation reforms focus on the most profitable resources, raise the uplift factor for tax losses, remove refundability and offer generous depreciation arrangements to promote new investment.  They are more generous to industry in some respects, while industry has given ground in other areas. The improved profits-based taxation reforms will apply from 1 July 2012.

The improved resource tax reforms involve:

• a new Minerals Resource Rent Tax (MRRT) regime applying to iron ore and coal in Australia; and
• extending the current Petroleum Resource Rent Tax (PRRT) regime to all Australian onshore and offshore oil and gas projects, including the North West Shelf.  This will provide certainty for oil and gas projects and ensure all oil and gas projects are treated equitably.

The Government will focus the resource tax reforms on our biggest and most profitable commodities: iron ore, coal, oil and gas. These represent three-quarters of the value of our exports and resource operating profits and account for an even greater share of resource rents in the mining industry. They also represent the vast bulk of growth in the sector over the coming decades.

Since the beginning of the mining boom, prices for iron ore have increased by over 400 per cent and prices for black coal have increased over 200 per cent.

Other commodities will not be included, which reduces the number of affected companies from 2,500 to around 320. These commodities were not expected to pay significant amounts of resource rent tax, and excluding them will allow many companies to remain in their existing taxation regimes.

The agreement also provides certainty for projects in the emerging industry of converting coal seam gas to LNG, by including all Australian onshore and offshore oil and gas projects, including the North West Shelf, in the PRRT.

Including all oil and gas projects in the one regime will ensure equitable tax treatment between competing projects.

To ensure the smooth implementation of the new arrangements the Government is establishing a Policy Transition Group (PTG) led by Resources Minister Martin Ferguson AM and Mr Don Argus AC to consult with industry and advise the Government on the implementation of the new MRRT and PRRT arrangements.”

The two ministers also said:-

“The improved resource tax reforms are estimated to reduce revenue by $1.5 billion over the forward estimates. As the Government has always said, all elements of the tax reform package are dependent on the package being balanced by the revenues from resource taxation.

The reduced revenue makes necessary the following revisions to the associated reforms:

• The company tax rate will continue to be cut to 29 per cent from 2013-14 but will not be further reduced under current fiscal conditions. Small companies will benefit from an early cut to the company tax rate to 29 per cent from 2012-13.
• The resource exploration rebate will not be pursued.  Resource exploration costs will continue to be deductible in the normal way and the PTG will consider the best way to promote future exploration and ensure a pipeline of resource projects for future generations.

We believe these improved reforms offer the best chance of delivering for hard-working families and small businesses around Australia while protecting and growing our great mining industry.

All along, our objective has been to deliver Australians a better return for the resources they own, which can only be extracted once, and this plan will deliver on that commitment.

We came together as a nation to stare down the worst of the global recession and now we come together to reform our economy, improve our tax system, and move forward with confidence.”

Like something better than a steady diet of baked beans, after you retire?

Of course you would.  However you must act now, to secure that goal.

Your instincts are right. You can’t trust anyone else to help you with that.
Particularly not politicians, lovely people though they may be.

The superannuation industry is urging Australia’s Federal politicians to adopt a bi-partisan policy on this issue.

Naturally, it wants that to include the steady move towards a 12 per cent compulsory superannuation levy, to replace the present one, which now stands at 9 per cent.

That’s not likely to happen.  Tony Abbott – and other senior Coalition  figures – argue that the higher levy would be a heavier burden than Australian employer should be expected to bear.

Besides the government’s plans, to raise the levy, depend on the 9 per cent super profits tax, that it intends to impose on Australia’s mining industry. That may never be seen, either.

The superannuation industry recognises all this – and more besides.

Especially that Australia’s political situation is likely to change, with a Federal election due later this year.

Why, though, should you wait for others,  when you need to  to secure your own financial future?

There are big items, that you should remember.

The first is that the Age Pension, itself, is meant to do no more than help people survive in retirement.

So what’s on offer?

The government is fond of reminding us that an Australian, now aged 30, and on average weekly earnings, can look forward to a payout of  $108,000 on retirement, if its plan to boost super is adopted.

This implies, of course, that you can expect even more than that, if you contribute another 3 per cent of your wages to your super, without  waiting for those notoriously unreliable politicians to actually decide what they would do.

All it takes is a note to your pay office.

Don’t delay, though.  The earlier you act, the bigger your super payout will be.

The Federal government has delivered a big surprise, in its tax reforms, promising to gradually take compulsory contributions to superannuation from 9 to 12 per cent.

This will mean much bigger retirement benefits for Australian workers, especially as the cost of maintaining most superannuation accounts will also be slashed.

In an announcement they described as historic, the Treasuer Wayne Swan and Superannuation Minister Chris Bowen spelt out the details.

The two ministers said:-

“The Rudd Government will deliver an historic boost to retirement savings to help prepare for an ageing population and ensure the Australian people get a fairer share of our mineral wealth.

“Today’s announcements are the biggest reforms to superannuation since the introduction of compulsory superannuation in 1992 as part of our Stronger, Fairer Simpler: Tax Plan for our Future.

“The Government’s reforms will deliver substantial improvements in retirement savings and a fairer distribution of superannuation tax concessions, ensuring more Australians can enjoy a comfortable retirement.

“The Stronger, Fairer, Simpler: Tax Plan for our Future superannuation reforms are:-

•   A  12 per cent Superannuation Guarantee (SG) – commencing with a 0.25 increase in 2013-14 and 2014-15, followed by 0.5 increments until the SG reaches 12 per cent by 2019-20. The three year lead time recognises that employers and employees need to factor this into future wage negotiations.

•    A low income earners Government contribution – from 1 July 2012. The Government will provide a contribution of up to $500 annually into the superannuation account of workers on adjusted taxable incomes of up to $37,000. This will provide a reward for savings for low income earners by ensuring no tax is paid on SG contributions.  The Government will also retain the co-contribution scheme.

•     Concessional superannuation contribution caps for those nearing retirement – from 1 July 2012. Workers aged 50 and over with superannuation balances below $500,000 will be able to make up to $50,000 in annual, concessional superannuation contributions. This measure is expected to benefit 275,000 people.

•    Raising the Superannuation Guarantee age limit from 70 to 75 – from 1 July 2013. The SG age limit will be raised to 75, which for the first time means workers aged 70 to 74 to be eligible to have SG contributions made on their behalf. Around 33,000 employees are expected to benefit from this measure.

These superannuation measures will cost around $2.4 billion over the next four years.

As a result of these reforms 8.4 million Australians will receive an increase in their retirement incomes, including 3.5 million Australians on lower incomes who do not receive tax incentives for saving through superannuation and older workers catching-up on their retirement savings.

•                An employee aged 30 today on average weekly earnings, will retire with an additional $108,000 in superannuation.

•                A female aged 30 today on average weekly earnings, with an interrupted work pattern, will retire with an additional $78,000 in superannuation.

•                The superannuation savings of 3.5 million Australians on lower incomes will be boosted by $830 million over the forward estimates.

Over the next 10 years, $85 billion will be added to Australia’s pool of superannuation savings. A proportion of these savings will be channelled back into the Australian economy to fund jobs and nation-building infrastructure, ensuring our reliance on foreign funds is lower than it otherwise would be.

The measures the Government has outlined help address the challenges of an ageing population set out in the Intergenerational Report 2010 and also complement the Secure and Sustainable Pension changes made in the 2009-10 Budget.

The Government is determined to boost Australians’ retirement savings so that whenever the mining boom ends, Australians have got something real and enduring to show for it.   Our natural resources are finite, so we need to take action now to ensure we save some of the proceeds.

The Government will consult with industry on the implementation of these measures.

More information on the Stronger, Fairer, Simpler: Tax Plan for our Future is available at www.futuretax.gov.au.

Six million Australian share owners can look forward to more competition – and cheaper trades – before the end of the year.

At least one other operator, apart from the Australian stock exchange, should be offering share trading facilities by then.

This will happen under historic changes that the Federal government has just announced.

The Financial Services, Superannuation and Corporate Law Minister Chris Bowen said the government had given a new competitor, Chi-X in principle approval to operate in Australia.

“This is based on advice from ASIC that Chi-X is well advanced, has already met the principal requirements for the issuing of a licence and is well advanced to meet the other, more minor requirements for the issuing of a licence,” Mr Bowen said.

He said this would advance Australia’s long held ambition to become a regional financial hub.

“This announcement is important for Australia’s ambition to be a financial services centre,” Mr Bowen added.

He said this development would not have been possible without the government’s decision last August to transfer supervision of Australia’s financial markets from the Australian Stock Exchange to the Australian Securities and Investments Commission.

“I said ……that decision, would enable competition to be considered on its merits and that is what has occurred, Mr Bowen added.

“I also said at the time that any alternative market operator could not begin operation until after the transfer of supervision had occurred.

“And that remains the Government’s position.

“The transfer of supervision is well advanced and remains on track to occur in the third quarter of this year,” Mr Bowen said.

He said the government had also received two other applications, to operate in the market.

“… one is from Liquidnet.

” and one is from AXE,” Mr Bowen said.

“My understanding is that neither of those applicants are pressing their application at the moment,” he added.

Australia’s birth rate is likely to rise under a Coalition government,  Tony Abbott says.

The  Opposition Leader made the claim today, in the first of three major speeches, setting out the “values and approaches” that he intends to take to the Federal election due later this year.

“There’s considerable evidence that decent parental leave can encourage women to have more children and raise Australia’s birthrate above the current 1.9,” Mr Abbott said.

“ A 2009 study in The Quarterly Journal of Economics suggested women might be 15 per cent more likely to have a second child when maternity leave provisions were strengthened,” he added.

Mr Abbott said, too, that the controversial maternity leave scheme, that he proposed recently, would meet this need.

He also reminded his audience, at a Leaders” Forum in Sydney, that it was the founder of the Liberal Party, Sir Robert Menzies, who had introduced child endowment in Australia.

Mr Abbott said the paid maternity leave scheme, that he is proposing, would be fully funded.

“Because all benefits have to be paid for, this will be funded by a tax levy of up to 1.7 per cent on companies’ taxable income over $5 million a year,” he  said.

He also promised  that a Coalition government government would curb spending and restore the  Federal budget to surplus,

Mr Abbott said the Rudd government had spent recklessly and needlessly in the wake of the global economic crisis.

He also promised tax cuts.

“Once Labor’s debt has been repaid and personal income taxes have been reduced, it should be possible to reduce company tax,” Mr Abbott said.

So even the levy, to fund his paid maternity leave scheme, might not be permanent.

“ If so, the levy would be only a temporary increase in tax for the 3200 companies with taxable incomes over $5 million a year,” Mr Abbott said.

The Federal Treasurer, Wayne Swan, says the Labor government’s future tax take won’t be bigger than that of its predecessor, the Howard government.

“We remain committed to keeping taxation as a share of GDP below the level the Government inherited,” Mr Swan said.

“And that’s 23.6 per cent of GDP in 2007-2008,” he told an ABC radio interviewer.

The commitment is important, because the Treasury Chief, Ken Henry, said last night that the government’s need for money would rise over the years ahead, as Australia’s population aged.

That was taken as a sign that the government might be planning to raise taxes.

Especially as Mr Henry headed a committee which has just completed a major review of Australia’s entire, ramshackle, taxation system.

The committee’s report, which runs to more than 1,000 pages, was handed to the government just before Christmas.

But it has not yet been released to the public.

Mr Swan admitted, though, that the rapid ageing of the Australian population would put pressure on the nation’s finances.

“Well, I think it’s very clear – and you’ll see this in the Inter-Generational Report which I will release in a short period of time – that the ageing of the population will put pressure on the Budget, and on the economy over the next 40 years.,” the Treasurer said.

“There are currently something like five people of working age for every person aged 65 and over,” he added.

“And in 2050 that will be 2.7.”

“That’s why the Prime Minister has been talking about increasing productivity,” Mr Swan said.

He said that’s what Australians must do to offset the ageing of the nation’s population.

” That’s the way to solve the problem of the ageing population, along with increasing participation,” Mr Swan said.

” It’s making sure that we pay attention to that critical issue of productivity, so we increase our wealth and increase our capacity to support an ageing population, and also make sure we have the right policy settings in place in health and retirement income policy which will support an ageing population,”

Mr Swan said, though, that increasing productivity meant working smarter, not harder.

Older Australians might be encouraged to work longer. But those who wanted to retire would still be able to do so.

Christmas sales will be “reasonable” this year, but well short of boom conditions, according to Access Economics.

The forecaster says that, in effect, Australia’s shopkeepers had their Christmas early this year.

The economists said that happened back in March, when the Federal government posted out thousands of $900 cheques, as part of its first stimulus package.

“and retail sales spiked up as a result,” the economists said.

That, of course, was precisely what the government wanted, at the time.

But more recent spending has been far more modest, Access said.

The economists pointed out that, even in nominal terms, retail sales rose by just 0.6 per cent in the three months to the end of October.

However consumer confidence remains very strong, Access said.

It said two key indicators of wealth, the share market and house prices, had also rebounded strongly, after the global economic crisis.

These developments would usually be accompanied by strong borrowing, as Australians became willing to spend more.

“Yet we are seeing some consumer caution on this front,” the forecaster said.

“The stock of personal debt remains 9.5 per cent lower than a year ago.

“Consumers have used their interest rate windfalls to pay off some debt,” Access said.

The forecaster is predicting that real sales, in Australia’s shops, will rise by just 2.1 per cent in the 2009-2010 financial year.

A surge in public sector earnings will add to the pressure for another rate  rise next month.

That development was confirmed in a second set of figures, that the Australian Bureau of Statistics has just released.

These show that Australia’s public servants received a 5.8 per cent rise in their full time adult ordinary time earnings in the 12 months to the end of August.

That is on seasonally adjusted figures.

Like the wage cost index statistics, released earlier this week, these figures show public sector wage rises have far outstripped those seen in the private sector over the past year.

However private sector wage rises, in that time, have also been impressive.

The comparable figure, for private sector employees, was 4.9 per cent.

But the public servants, who are sometimes described as “fat cats,” are maintaining their lead.

Their earnings rose by 1 per cent in the latest May to August period, while private sector employees saw their earnings rise by just 0.9 per cent.

They suggest that Australia’s public servants have barely been touched by the global economic crisis, which began with the collapse of Lehman Brothers in September last year,

The costs of tackling – and not tackling – climate change became clearer over the weekend, as prospects for a firm outcome, at next month’s Copenhagen conference receded.

A new report estimated that some 250,000 coastal properties, around Australia, could be at risk of flooding as sea levels rise, as a result of global warming.

It said Sydney airport is among the properties at risk.

Developments, on that scale, imply social disruption.

But property damage would just the start of all that.

Earlier studies have shown that many low lying Pacific islands could also be flooded, as Antarctic sea ice melts.

That could well involve the relocation of entire Pacific populations, involving people movements on a scale Australia has not yet seen.

Speaking at an APEC Leaders’ meeting in Singapore yesterday, the Prime Minister, Kevin Rudd, admitted officials, who  have been trying to get a firm outcome, from next month’s climate change talks in Copenhagen, had found themselves “running into all sorts of difficulties.”

“…and therefore it is time for leaders, politically, to step in,” he added.

The reality, though. is that there is now, effectively, no chance of reaching a binding agreement, on steps to tackle climate change, at the Copenhagen meeting.

That became clear when Asian leaders, at the APEC meeting, stepped back from their previous position, which had included a 50 per cent emissions reduction target.

Sources said this had happened at China’s insistence.

Mr Rudd insisted, though, that he will still be looking for “a robust outcome” from the Copenhagen meeting

The retreat by Asian nations, though, is certain to encourage climate change sceptics, when the government’s emissions trading scheme come before Federal parliament again  this week.

The Coalition appeared to be on the verge of a major breakthrough yesterday, in the private talks it has been holding with the government on its proposed legislation.

Reliable reports said the government is prepared to exempt Australia’s farmers, altogether, from its legislation, if the Coalition will pass it through the Senate.

Text books, especially those in economics, are not supposed to read like Dan Brown thrillers.

They certainly didn’t, anyway, in your correspondent’s student days.

But Ross Garnaut’s new book, The Great Crash of 2008, breaks that rule.

The most chilling thing, though, about the tale it tells is that, unlike Dan Brown’s work, it’ story is all true.

And, unlike other text books, in the arcane subject of economics, it is all quite accessible to the ordinary reader.

(Although Professor Garnaut could well have had a small glossary of essential acronyms, like CDO -collateralised debt obligations-somewhere in the book).

He does, though, mostly keep these mysterious letters close to his, quite clear, explanation of their meaning, in his text.

We all know, by now, that Australia’s banks largely escaped the grim fates that excessive greed brought to their US cousins.

But why?

Professor Garnaut’s explanation offers little comfort.

He says they were just four years behind their American counterparts, in the development of the greed fuelled shadow banking instruments, like CDO’s, that brought the American banking system to grief.

In the best traditions of terrifying narratives through the ages, Ross Garnaut tells a strong moral tale, in his new book.

This is a story that can highly recommended to all Australians who want to keep their personal finances in order.

West Australians, in particular, should read it.  Their newspaper, the dear old West Australian, for which your correspondent wrote, for many years, is already enthusiastically reporting the new boom, before the old crisis has passed.

Reality checks, though, are necessary everywhere in times like these.

And Ross Garnaut is offering some excellent ones, right now.

His book was published by Melbourne University Press.  It is selling for $24.99.

It all seems to add up to a good- if desperate – idea.

Like thousands of other Australians, this global economic crisis has left you strapped for cash.

But there are still bills to pay.

And there is that pot of gold, that’s just sitting there, tied up in  your super.

Besides, as recent events have shown, you couldn’t do any worse at managing your super than that damned fund you are in.

It all seems so reasonable.

Why not cash it out early, take a bit out to tide you over these bad times, and put the rest into a self managed super fund, to provide for your retirement?

You could hardly do worse than those, so-called professionals, who are managing your super now  could you?

Well, actually, yes.

There are problems with these ideas.  Big ones.  In many cases, taking early access to you super is simply illegal.  Then there are the tax complicati0ns.  These, too,  are serious.

But this adviser is telling me that he can guide me through all that.  So what’s the problem?

One, is that he won’t be doing it for free.  The commissions charged, in setting up a self managed fund, this way, can be very large.

There is also the risk of outright theft, of your super, as your superannuation money is being moved.

So where can you go, for good advice on all this?

The Australian Securities and Investment Commission has some excellent advice on its consumer website, called Fido.  (Go first to www.asic.gov.au, then follow the prompts).

The fifteen minutes this will cost you could well be the best investment you make this week.

It’s all in simple language.

“Sometimes, when you are in financial trouble, it might seem like a solution to access your super,” Fido says.

“But, depending on your situati0n, this may not be the best way to help you out of your financial trouble,” it adds.

Fido says you might do better to make an application for a hardship variation.

What’s that?

A trip to the website, to find out, might well be a very good idea, indeed.

The Federal government is increasing emergency relief for Australians who have been hit hard by the financial crisis.

The Minister for Families, Housing, Community  Services  and Indigeneus Affairs Jenny Macklin  spelt out the changes in parliament yesterday. (see aph.gov.au then go to hansard).

She said a new report showed that 65 per cent of Australia’s community organisations have seen an increase in demand for their services, since the crisis struck.

Many Australian families had  been hit hard.

“Suddenly, more than half their income is consumed by rent or mortgage payments,” Ms Macklin said.

That doesn’t leave much to pay the regular bills, she said.

“We have doubled emergency relief funding and provided more funding for financial counsellors.

“From March 1 2009 until June 2011, current funding to the emergency relief program was doubled.

“That’s an increase of more than $80.4 million,” Ms Macklin said.

She said the government wanted to equip community organisations to take early relief action.

“Which is why we are funding 50 new financial counselling positions for the next two years.”

Ms Macklin said this would help to break the cycle of financial crisis.

“This brings the total number of government funded financial counselling positions to 121 across Australia,” Ms Macklin said.

The Prime Minister, Kevin Rudd, isn’t answering questions yet, on reforms proposed for Australia’s health system.

But he is working to clarify the issues.

And, at this stage, even that’s a positive step.

Mr Rudd told an ABC radio interviewer in Melbourne yesterday that the reforms, proposed by the government’s own National Health and Hospitals’ Reform Commission, would have to be “integrated.”

“It needs to be an integrated set of reforms,” Mr Rudd said.

This is not just a big ticket item for nation.  It’s huge.

Australia already has a national health system that is the envy of many other countries, including the United States, where legislators are currently arguing bitterly over proposals for a much more basic system of universal health cover than Australia’s.

But Australia’s system, too, still has gaps.

There are big gaps, for eample, in preventative health measures.  And Australia’s present system does little to help the poor meet their  dentists’ bills.

And , as the old song says, the thigh bone’s connected to the kneebone.”

Mr Rudd acknowledged that.

“What we do in preventative health care relates to what we do in primary health care,” he said.

“That is with GP sand GP related services.”

And that, in turn, affects how Australia manages its overstretched public hospital system, the Prime Minister added.

The health industry, also, contains many deeply entrenched individual interests, that do not have a good record of co-operation.

The commission’s report does guarantee, though, that health will be a major issue at the next Federal election.

Especially as Mr Rudd has also made it clear that he will not be taking any major decisions on the report’s recommendations before the.

Malcolm Turnbull says Australia could be put on the path to recovery without Labor’s “reckless spending” or its “colossal debt.”

Delivering his reply to the Rudd government’s second budget, the Opposition Leader said Labor’s budget would saddle every man, woman and child in Australia with a $9,000 debt.

“The budget was so unbelievable, that the Prime Minister is already running away from it, towards an early election,” Mr Turnbull said.

He proposed a four point plan, which he said had been worked out following meetings with employers throughout Australia.

Mr Turnbull said that plan would be based on four principles.

These were:-

1. The protection and creation  of jobs for all Australians
2. Government spending should be directed towards infrastructure and
3. Small business should be supported and
4. “The government should not incur $1 dollar more in spending or debt than is absolutely necessary to achieve these goals.

Mr Turnbull   said that when the Coalition  met  employers,  in every State, it had been told that business needs more incentives to take on apprentices.

He said a Coalition government would provide finacial support for employers who take on apprentices in the first two years of their apprenticeships.

He also proposed a tax “carry back” for business.

That would allow a previous year’s loss to be set against  against current profits for tax purposes.

And he said greater emphasis should be placed on reconstruction, in Australian law, when businesses face hard times.

He said thousands of jobs could be saved – and many businesses kept in operation – in that way.

Mr Turnbull also proposed an independent authority, to watch Federal spending and to report on its sustanianability.

This would be modelled on the US Congressional Budget Office.