Professor Graeme Samuel, former chairman of the Australian Competition and Consumer Commission (ACCC), has waded into the debate over the federal budget, defending the government's tax reforms and labelling fierce criticism as “doomsday” attacks.
Budget reforms 'mild' compared to past
Speaking on the Politics with Michelle Grattan podcast, Samuel said the budget's changes—including capital gains tax adjustments and a crackdown on trusts—are “actually quite mild” compared to the sweeping economic transformations of the 1980s and 1990s. He argued that Treasurer Jim Chalmers is merely trying to remove “distortions” built into the tax system by successive governments, particularly Coalition governments, which have “feather-bedded” those with vested interests.
Samuel pointed to the generous 50% capital gains discount as a key distortion. “Why should wage earners pay more… for the provision of our hospitals, our schools, our police force, and our defence, than those who have got the benefits of capital gains, tax concessions, and the use of trusts?” he asked, echoing economist Saul Eslake’s simple framing.
Media coverage criticised
Samuel also took aim at sections of the media, claiming that outlets such as the financial press and The Australian have given uncritical coverage to vested interests opposing the budget. “You look at the byline, you know immediately what’s going to be said,” he said. He compared the current outcry to the “end of the world” claims made when the Howard government introduced the GST in the late 1990s—predictions that, he noted, did not come true.
Supermarket competition and petrol prices
On supermarket competition, Samuel acknowledged that Coles and Woolworths have “copped a reputation battering,” but argued that some of the criticism has been unfair. He noted that a Federal Court judge found no price gouging in a recent case, and pointed to growing competition from online retailers like Amazon. “Aldi now is having to reduce prices to ward off the competition coming from Coles and Woolworths,” he said.
Regarding petrol prices, Samuel dismissed the idea that the ACCC can significantly influence them. “There is nothing the ACCC can do about petrol prices, other than to be sure that there is proper competition occurring,” he said, noting that prices are ultimately set by international factors.
The federal budget has been the most controversial since the Abbott government’s 2014 budget, with Labor struggling to sell its changes. However, Samuel’s support echoes past tax reform efforts from the Hawke-Keating and Howard-Costello eras.
