OECD Economic Surveys.

Description

OECD's 2014 Economic Survey of Australia examines recent economic developments, policies and prospects. Special chapters cover taxes and transfers, and federal-state relations. Table of contents Basic statistics of Australia Executive summary Main findings Key recommendations Assessment and recommendations Box 1. Economic policies of the current government Post-boom adjustment is underway Figure 1. Output, employment and prices Figure 2. External developments Long-term economic, social and environmental challenges Figure 3. Housing market developments Table 1. Macroeconomic indicators and projections Figure 4. Long-term challenges Figure 5. Environmental challenges Figure 6. Australia's score in the Better Life Index. Ensuring price and financial stabilityInflation targeting continues to work well The composition of Australia's large and mostly private external debt has improved Table 2. Selected balance-sheet indicators Prudential oversight is focusing on the housing market Banks are strong, but the degree of concentration raises issues Figure 7. Banking sector indicators Recommendations on ensuring price and financial stability Pursuing fiscal consolidation and ensuring efficient tax and public spending A structural budget problem has emerged. Figure 8. General government revenues, expenditures and debtFigure 9. General government balance and net debt Figure 10. The Commonwealth government's medium-term fiscal outlook Options for embedding more disciplining mechanisms into federal-budget processes Figure 11. The impact of policy decisions and the economy on the Commonwealth Budget There is room for a more growth-friendly tax mix Figure 12. Deficit reduction according to the 2014-15 budget Reforming state-level financing -- raising autonomy and responsibility. Table 3. Notable measures proposed in the 2014-15 budget, impact on the fiscal balance, AUD billionsFigure 13. Tax revenue by sector relative to top OECD countries Figure 14. Fiscal decentralisation Figure 15. Vertical fiscal imbalance: A comparison with other federations Figure 16. Sub-central tax revenue Some shared federal-state service provision does not work as well as it could Figure 17. Decomposition of government expenditure by function There is room to further improve state-level performance indicators. Recommendations on pursuing fiscal consolidation and ensuring efficient tax and public spendingImproving framework conditions for business Infrastructure is receiving much attention A new campaign to cut red tape is underway There is room to rebalance business taxation and support schemes Figure 18. Indicators on business policy Ensuring strong competition will require continual attention Recommendations on improving framework conditions for business Encouraging employment, deepening skills and addressing inequality Mixed progress in improving households' tax-benefit situation.