Fed: OECD gives wake-up call to Aust on eco reform

AAP General News (Australia)
08-01-2006
Fed: OECD gives wake-up call to Aust on eco reform

The OECD has given the federal government a huge wake-up call .. arguing Australia
needs to embrace a range of major economic changes if it's to continue being the lucky
country.

In its annual survey .. the Organisation for Economic Cooperation and Development says
the surge in commodity prices has delivered a major income boost to the nation.

But it warns this could be squandered if federal and state governments do not make more changes.

It's called for ..

- an extension of the GST to fresh food ..

- indexing personal income tax rates ..

- phasing out industrial awards ..

- extending welfare to work changes to all people on government handouts ..

- and even giving states their own income taxes.



The OECD says Australia has also made its own luck through structural reforms across
a wide range of sectors that have boosted national income.

However .. it believes that luck could come to an abrupt halt with an end in the surge
in commodity prices and a drop in productivity growth.

AAP RTV sw/sb/wz/psm/

KEYWORD: ECONOMY OECD (CANBERRA)

2006 AAP Information Services Pty Limited (AAP) or its Licensors.