OECD wants continued reform
Prime Minister Tony Abbott has indicated the May budget will be less harsh than last year.
In what appeared to be a peace offering after surviving an attempt to have a leadership spill motion in his party room on Monday, Abbott conceded last year’s budget may have been “too bold and too ambitious”.
But the Organisation for Economic Cooperation and Development says the government must continue its reform agenda.
In a report prepared for a G20 meeting in Istanbul, the OECD urges the government to continue with its infrastructure program, pursue an affordable childcare policy and cut the company tax rate for all businesses.
It has again called for a higher GST rate and broadening its base, changes Abbott only last week ruled out for “this term or next”.
You might like
Meanwhile, Australia will be trying to keep the other G20 countries on track with their agreed growth targets during the first ministerial meeting for the year.
Leaders of G20 countries signed up to increase global GDP by more than two per cent over the next five years when they met in Australia in November.
Setting up a common way of tracking how those commitments are being achieved will be discussed at a meeting of finance ministers and central bank governors in Turkey on Tuesday, Australia’s representative Michael McCormack says.
“Future G20 meetings of this nature will be an important forum for keeping countries to that agenda and keeping each other accountable and moving forward in the direction that was set in Brisbane,” the parliamentary secretary to the finance minister told AAP from Istanbul.
Stay informed, daily
“At the Brisbane summit late last year the leaders knew they were signing up to a rather ambitious agenda.”
Nevertheless, McCormack is positive about the growth target, noting the United States’ economy is now recovering.
He also wants ministers to discuss the global infrastructure hub being created in Sydney as part of the 2014 agreements.
Turkey’s priorities for its G20 presidency in 2015 are implementation of previous commitments, investment for growth and inclusiveness.
It’s also keen to see what the G20 can do for small and medium businesses.
McCormack said Australian Small Business Minister Bruce Billson was looking forward to talking to his counterparts about this during the year.
Officials involved in the first ministerial meeting of the year had informal talks at a dinner on Monday night.
