ECON20023 T1 2008 Lecture 8

ECON20023 T1 2008 Lecture 8 - ECON20023 ECONOMICS FOR...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
Based on slides from Layton et al (2005) 1 ECON20023 ECONOMICS FOR BUSINESS T1 2008 LECTURE 8 Galina Ivanova, CQU
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Key concepts What is microeconomic reform? Some examples of microeconomic reform What is a competitive labour market? What is collective bargaining? Income tax reform Labour market reform. Based on slides from Layton et al (2005)
Background image of page 2
3 Microeconomic reform Microeconomic reform ( MER ) encompasses government policies that deregulate or re- regulate markets for goods, services or factors of production so as to: Increase competition in those markets Raise economic efficiency. Based on slides from Layton et al (2005)
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 Australian examples of MER Tariff reform: taxes applied on imported goods cut Financial deregulation Infrastructure & key sector reform in transport, communications, power Privatising government-owned bodies Corporatising government-owned enterprises Taxation reform Labour market reform. Based on slides from Layton et al (2005)
Background image of page 4
5 Taxation reform The Commonwealth government is Australia’s primary tax collector. Direct taxes are taxes levied on income, for example income tax, company tax. Indirect taxes are levied on the sale of goods and services, e.g sales taxes, excise taxes, the GST (goods and services tax). Based on slides from Layton et al (2005)
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6 Direct tax reform Direct taxes are a disincentive to work. Progressive taxes such as income tax have been reformed to reduce this disincentive. Proportional taxes such as company tax have been reduced to encourage efficiency gains brought about by greater incentives to invest and take business risks. Based on slides from Layton et al (2005)
Background image of page 6
7 Indirect tax reform The ‘old’ tax system (pre-2000) had a number of distortions – different goods were taxed at different rates. The GST has reduced such distortion, and also raises more tax, allowing for personal income tax reductions. The GST is, however, regressive – lower income earners pay a higher proportion of their income in indirect taxes. Based on slides from Layton et al (2005)
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
8 Labour market reform For most of the twentieth century, Australia had a highly centralised wage-fixing process. Since the early 1990s, around one-third of
Background image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/06/2009 for the course MGMT econ taught by Professor Galinaivanova during the Spring '09 term at University of Central Arkansas.

Page1 / 38

ECON20023 T1 2008 Lecture 8 - ECON20023 ECONOMICS FOR...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online