Jeff Kennett: We need bold politicians to think small and slash our bloated government
Big governments are invariably less efficient, more costly, and take longer to make change. It’s time to downsize the public service so we can get things done.
Opinion
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Last week I suggested that governments, particularly the Victorian government, should be smaller in size, more efficient and less costly.
Why did I suggest this?
Simply because we can all be winners.
Big governments are invariably less efficient, more costly, and take longer to resolve matters.
Again, just reference what the Victorian government has delivered over the last 11 years.
A significantly larger public service, massive increase in costs of their administration, and massive inefficiencies in the way they have managed the services they should be providing, while overseeing massive cost blowouts in the infrastructure projects they are building.
For Victorians that means we are being less well served by those we elected.
It also means we have less control over our own lives.
We are continually being asked to pay more in taxes and charges, for the size, inefficiencies and cost, of their administration.
Labor’s inefficiencies, along with their taxes and charges are a disincentive for those wishing to invest and to run risks in building a business, let alone struggling to keep the business they operate.
It does not have to be like this.
But it will take us all demanding government reduce its size, costs and inefficiencies.
The more we do so, the more money government will have to provide for professional, compassionate services and move to returning our state budget to a balanced position and then a surplus.
To achieve the above, we need bold politicians who are supported by a public demanding change.
We need a smaller, more efficient government to create opportunity and growth in the private sector that in turn will lead to greater employment.
No one should fear what I have said above or the implications of smaller, less costly more efficient government.
Now more than ever with the introduction of new technologies, we can redesign the shape and form of government.
In fact, we should also support and advocate that goal. If achieved, we will all be substantially better off.
It will incentivise those who want to work hard, try new projects, and, when successful, enjoy the rewards of their efforts.
One of the problems with large public services is it creates more levels of authority. Individuals scared to make decisions and therefore decisions get delayed.
Federal Treasurer Jim Chalmers is leading a forum shortly to discuss reforms, that hopefully will stimulate economic activity throughout the country.
This is the time to be bold.
To bring about genuine tax reform. Have the parliament sit every week until such reforms are passed and enacted. This year, to be effective from June 2026. There is no reason that cannot occur, which gives the reforms two years to work their way through the community before the next election.
This is the time for genuine leadership and reform.
Again, the objective should be for smaller government, greater efficiency and therefore at less cost.
If the federal government has the courage to reform they will win the next election. Without leadership through reform, they will be at electoral risk because the condition of Australia, our productivity, our debt, will have got worse.
No point Jim Chalmers creating the impression he will be a courageous Treasurer, if he fails to deliver. He will have substantially damaged his reputation.
That therefore means he will need two ingredients. Courage, and a willingness to listen, in making his final decisions.
Courage to make some tough decisions which make sense and can be explained, and listen to ensure he does not disenfranchise community members or businesses unfairly or for ideological reasons.
On the latter, his proposed changes to superannuation, will disincentivise many not to grow their superannuation, which will result over time in more people in later lives relying on government pensions.
The failure to index the $3m upper limit he wants to impose at the current tax rates, will disenfranchise young Australians today who have perhaps 40 years of their working life ahead of them.
Or the madness to tax unrealised gains, which will be an accountants’ delight but again attack incentives for growth.
Yes, crack down on the abuse of superannuation by some, but understand the rules on which most have operated legally for in many cases decades.
The government’s forum must not fail. Their leadership will be judged on the genuine reforms or change that they introduce.
Albo blasted over China
Prime Minister Anthony Albanese was attacked by some for elements of his trip to China.
Building genuine relationships often require more than just the odd meeting with counterparts.
I was pleased to see a memorandum of understanding over trade, and protocols signed between the two countries that will allow the export of our fruit to China.
This is very important and presents a challenge that the government and industry should rise to meet.
Glass-half-full is always better than a glass-half-empty.
Have a good day.
Jeff Kennett is a former Premier of Victoria
Originally published as Jeff Kennett: We need bold politicians to think small and slash our bloated government
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