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AUSE01Z01MA - V1 THE AUSTRALIAN, FRIDAY, MARCH 16, 2018 4 theaustralian.com.au THE NATION ATO ACCUSED OF HARASSMENT Growth in public sector can’t last, CBA warns economist Gareth Aird shows. EMPLOYMENT GROWTH WAGE PRICE INDEX sector. But it is very hard to make a spending growth at the national DAVID UREN The biggest contributors to pub- justification for this disparity over level has outpaced that of state Annual % change, Annual % change ECONOMICS EDITOR lic-sector employment growth such a long period of time,” Mr and local government.” Small over the past two years have been half-year moving average Aird says. The slower growth of house- 5 The growth in federal and state health, with the National Disabili- 10 PUBLIC As a result, government run- hold spending reflects the squeeze public services is outstripping the ty Insurance Scheme accounting 8 4 ning costs are rising much more on incomes. private sector and being financed for some of the 63,000 new jobs, 6 rapidly than household budgets. Indeed, households have been by an unsustainable increase in education, with 59,000 more staff, The latest national accounts running down savings to maintain 4 PUBLIC 3 taxation, a Commonwealth Bank and administration, information showed that government costs, their consumption. 2 PRIVATE business analysis finds. technology and security, which 2 not including investments, were However, government recur- Aggressive recruitment of pub- have added 24,000 positions. 0 PRIVATE 4.9 per cent higher than a year ear- rent spending is ultimately funded lic servants drove the rapid growth Mr Aird notes that this does -2 1 lier, which was a full two percent- by taxpayers. in employment through 2017, with not include the big build-up of Nov NovMayMay Nov 1997 01 05 09 13 2017 age points above the growth in “Workers are handing over an the numbers in the latter half of employment on state government 2015 2016 2017 household spending. increasing share of their income at last year up 9.1 per cent from the infrastructure works, most of Source: Commonwealth Bank, ABS Government spending has a time when the savings rate is low, attacks previous year. which has been contracted to now been rising at an average rate real wages growth is flat and Private-sector jobs growth by firms in the private sector. cent higher than a year earlier, tralian Bureau of Statistics reports of 4 per cent a year for the past household consumption growth is contrast was just 2 per cent. Not only has the public sector while private-sector wages were over the past two decades. three years, significantly out- modest. It is no wonder that Public-sector recruitment has been hiring more people, it has up only 1.9 per cent. “The more unionised public- pacing household spending households are feeling the pinch,” been ahead of the private sector also been offering bigger pay The faster growth in public- sector workforce has more collec- growth. Mr Aird says. for the past two years, the report increases. In the latest quarter, sector pay has been a feature in tive-bargaining power than the “It has been driven by all three “These trends are unsustain- tax ‘bully’ by Commonwealth Bank senior public-sector wages were 2.4 per 70 per cent of the quarterly Aus- much less unionised private tiers of government, although able in the long run.” past experiences, with the ATO ANTHONY KLAN remaining solely responsible for determining whether a business NDIS billions behind housing boom Entrails of $70m The Australian Taxation Office was “effectively engaging” or routinely abuses its position to otherwise. chase small businesses for debts An ATO spokeswoman said fund to be exposed that don’t exist and should under the Transparency of Tax Debt EXCLUSIVE no circumstances be given extra measure was designed to “sup- powers to hand on allegations of port more informed decision- RICK MORTON outstanding tax debts to credit making in the business commun- SOCIAL AFFAIRS WRITER PAMELA WILLIAMS reporting agencies, an industry ity by making unpaid tax debts SENIOR WRITER group has claimed. visible”. A pipeline of almost $6 billion In a submission in response to “This will enable businesses worth of housing investment for It may not be the trial of the cen- proposed changes obtained by and credit providers to make a disabled people will soon be un- tury but Monday’s court case to The Australian, Self-Employed more complete assessment of the leashed as part of the $22bn Na- determine who owns the $70 mil- Australia called for the bill to be creditworthiness of a business tional Disability Insurance lion Cormack Foundation trea- withdrawn, describing it as a when they consider extending Scheme which will help fund at sure chest is the denouement of a Kroger Doyle “grab for additional powers for credit or terms of trade,” the least 10,500 more supported pla- fight that has split the Liberal the ATO to use against small spokeswoman said. ces across the country. Party and will lay bare the inner three former MPs, David Kemp, business people”. “The measure is also designed Market research commis- workings of a once-secret funding Michael Ronaldson and Fergus The ATO already had expans- to reduce unfair advantage sioned by policy group the Sum- machine that helped drive Liberal Stewart McArthur. Speculation ive powers which exceeded obtained by businesses that do mer Foundation, to be released victories for decades. tipped either Mr Alston or Mr “arguably any other government not pay their tax on time, and today, shows the flagship disabili- Even before the case starts, the Stockdale for chairman. body” and it “routinely” abused ty scheme will spark a housing name of at least one new director Mr Alston, a former Liberal those powers, the group said. construction and investment has been dropped from the Vic- senator, most recently made “The ATO already has the ‘It already has the boom from both the public and torian Liberal Party’s list of names waves when he quit as an inde- power to raid a person’s home power to raid a private sectors. to replace the board of corporate pendent director of CPA Austra- without a warrant, allege a debt, The Australian understands blue bloods who have steered lia, an organisation mired in demand payment of an alleged person’s home institutions and investors such as Cormack’s financial success. controversy over the remuner- debt, garnishee a person’s bank without a warrant, Macquarie Bank are eyeing sup- Former Melbourne lord ation and activities of then chief account to force settlement of an allege a debt ...’ ported disability accommodation mayor Robert Doyle was one of executive Alex Malley. Mr Als- alleged debt, sell a person’s house as a new market, with the NDIS six new directors proposed. But ton, apparently frustrated by fail- and bankrupt a person before the SELF-EMPLOYED AUSTRALIA due to hand out $700 million each last week an independent investi- ed attempts to stem the damage, person has a chance to ‘disprove’ year in housing support once the gation commissioned by the resigned in June. the debt,” Self-Employed Austra- program hits full rollout. council found Mr Doyle had sex- Mr Stockdale, a treasurer in lia’s submission says. encourage businesses to engage At the end of last year, the ually harassed two women. It is the Victorian Kennett govern- “Our opinion, based on solid with us.” scheme had committed $63.1m in understood his name is no longer ment, fought a bitter party battle evidence, leads us to allege that The spokeswoman said the housing support to 6936 partici- on the list of directors to run the ATO abuses those powers in new legislation would “permit but pants but that number will rise to Cormack should the party suc- order to bully and harass small not require” the ATO to inform 28,000 participants by 2020. ceed in court. A sizzling letter business people into paying credit-reporting agencies of un- There are 17,500 people living in A sizzling letter from the Vic- from the Victorian alleged tax debts that are often paid debts. such accommodation now, leav- torian party to the Cormack false or poorly supported by the She said many safeguards ing a gap of 10,500 places that will AARON FRANCIS board last June demanded all party to the evidence.” would be put in place and the need to be built. Liz Ellis is due to move into new NDIS accommodation this year: ‘It will be a home’ directors stand down in favour of Cormack board Financial Services Minister ATO would issue a “formal notifi- The National Disability In- a new board. demanded all Kelly O’Dwyer released draft cation” before disclosing tax surance Agency will not itself FAR FROM HOME support to get in and out of bed, to traditional models are very wel- The campaign to oust the directors stand legislation last month that would debts, allowing the business construct accommodation but The shortfall in special shower and have meals prepared coming. I am capable of running board and seize control of the down in favour of allow the ATO to disclose to cre- 21 days to “contact the ATO to participants who are given hous- disability accommodation — but has been provisionally ap- my own life and the traditional funds has been spearheaded by dit reporting agencies tax debts manage their debt”. ing subsidies — currently ranging Existing Per capita proved to move into a new apart- model made me think I am in- Victorian party president a new board owed by small businesses. Taxpayers who had a payment from $12,419 to $107,235 each year SDA distribution ment in the Melbourne suburb of capable.” Michael Kroger.

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