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Fightback in Perspective: What Difference Would it Make?

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  • J.W. Nevile

Abstract

This article examines the economic, as opposed to social, effects of the Fightback package and concludes that both beneficial and adverse effects of the tax measures have been exaggerated. The switch from various taxes to a GST will increase efficiency but only slightly and will have a neglible effect on labour supply and savings. Adverse effects on small business and on federal financial relationships will not have a large impact on the economy. The superannuation proposals will probably reduce savings. The most important effect of the package may be to increase unemployment as a result of the emphasis on enterprise bargaining combined with a determination to prevent any rise in the rate of inflation following the introduction of a GST.

Suggested Citation

  • J.W. Nevile, 1992. "Fightback in Perspective: What Difference Would it Make?," The Economic and Labour Relations Review, , vol. 3(1), pages 1-13, June.
    • Handle: RePEc:sae:ecolab:v:3:y:1992:i:1:p:1-13
    DOI: 10.1177/103530469200300101
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