Budget 2013 - lunge and riposte

Rigorous mining tax reform could have brought in $6 billion. Reversion to 75% Dividend Imputation could have recouped perhaps another $6 billion – or perhaps $12 billion if reverting to 50% as once advocated by renowned Australian economist John Quiggin. Restructuring income tax should also be an option; as should a tax on inheritances over $2 million. And cutting superannuation concessions for the wealthy and the upper middle class could have captured between $10 billion and $20 billion. Talk of 'taking pressure off public pensions', here, is a furphy – as superannuation concessions alone are now costing more than the entire Aged Pension Budget.

Arguably Labor's timidity was unnecessary. The government is withdrawing some payments from low to middle income groups – but shies away from raising further revenue from the top 5% to 10% income and wealth demographics. Why back away from such reforms when they would target only a wealthy minority; and when they would provide the scope for massive expansion of Australia's social wage and infrastructure – the benefits of which should be plain to voters?

Also importantly – Labor could have mimicked Abbott on one crucial point: his 1.5% levy on big business. Abbott could hardly have complained given his own policy, and Labor could have directed the money into areas of much more acute human need – for instance, aged care. It is still not too lateto develop just such a policy and seek a mandate for it at the coming election.

With perhaps over $30 billion from such initiatives a surplus may even have been achieved for the coming year. Though that would be apolitical objective; as the precariousness of the world economy demands a more fiscally expansionist stance. But Gonski could have been implemented in full. And comprehensive Aged Care insurance could have been rolled out on similar principles to Disability Care Australia. Finally, resources could have been provided for the States – maintaining equity in provision of health services; providing further resources for public transport and other infrastructure without regressive user pays mechanisms or even privatisation of roads – where consumers pay the price.

It is not too late for Labor to emphasise social insurance as a central theme for the election. If Abbott could be pressed to accept disability social insurance, the right kind of articulatory strategies by Labor could drive him to accept Aged Care insurance as well. If Labor loses the election –but manages to dictate the policy agenda in such a manner – then even in electoral defeat it would comprise a kind of victory. The suffering of our aged citizens – especially those in high dependency care – is an obscenity to the extent it could be ameliorated – but is not – because of 'other priorities'.

There is relief that Labor "has not cut to the bone". But the Budget is not all that is could have been, nor what it should have been. Failing to extensively reform superannuation concessions was the key capitulation in the face of relatively narrow vested interests. Hopefully, though, Labor will now press the themes of tax reform , social insurance and social wage expansion in the following months, and seek a mandate for progressive change.