The burden of power and the challenge for Labor

To provide further support to vulnerable workers - as well as pensioners - reform could include the progressive restructuring of the tax mix. This could include the introduction of wealth and inheritance taxes; altering the brackets and rates of PAYG income tax- including indexation of the tax-free threshold; raising Company Tax by as much as 5 per cent; halving dividend imputation (tax credits for investors); and introducing tax credits for low income earners.

Progressive and systemic restructure of the broader tax system is also a definite must to offset negative consequences for equity with the implementation of a carbon emissions trading system.

In the longer term, more permanent reform of the pension system is necessary. Here, we include - the Aged Pension, Disability Support Pension, Single Parents pension, Carer’s Allowance, Newstart and Austudy. All full pensions should be raised to at least 30 per cent of male average weekly earnings (MAWE) (up by 5 per cent of MAWE or more to $AUS 646.16 in total).

Whatever the final process, the aim must be to eliminate poverty in a real and meaningful sense. All Australians must have access to quality social goods and services as discussed in this paper, as well as access to affordable energy and water, and a varied and healthy diet.

And a modern program to eliminate poverty must also consider the need for social activity, and inclusion with regards to the digital age - in pace with ever advancing standards and means of communication.

Recent initiatives by Rudd Labor are timely and welcome but nevertheless there is more to do.

In conclusion

Even if such moves as suggested in this essay go beyond Labor’s mandate, there is a moral imperative for immediate action on minimum wages and welfare: as well as social wage expansion, including public housing.

The conservative Coalition Opposition has been vociferous in its condemnation of pensions failing to keep pace with a spiralling cost-of-living. Such a stand as this, however, must be taken with a grain of salt. After all, it was they who slashed the Disability Support Pension while in government: and who have unambiguously supported regressive tax cuts and restructure of the tax system, regardless of the effect this has on social services in health, education and elsewhere.

Public investment here could help give the Australian economy relative buoyancy - to resist any world-wide recessionary trend. On this front, at least, the Australian government seems set to take action - but public finance - as an alternative to Public Private Partnerships - would be more efficient, and less susceptible to abuse.

The worldwide meltdown brings to the fore the debate concerning the legitimacy of neo-liberal ideology and the much-vaunted free market. Foreign debt, dependence on credit, and reckless lending standards had long since reached critical levels.

Nor can Australia’s effectively private retirement savings initiative (superannuation), provide the country’s citizens with security. The scheme cannot be depended upon to channel investment into critically-needed infrastructure, and exposes people to unnecessary risk. The fundamentals of a system which greatly magnifies social inequality among retirees - must also be called into question. This again raises the prospect of an equitable, secure and guaranteed public pension fund.

To conclude: in Australia - and worldwide - socialisation of risk and of losses should not simply prop up the private profits of rapacious, unaccountable corporations.