Statement 4: Prosperity and Sustainability

This statement examines the evolution in policies and institutions most likely to contribute to further increases in Australia’s prosperity and the wellbeing of all Australians over the medium to long term. Those same policies and institutions are also those most likely to enhance Australia’s ability to deal with future economic shocks. While further policy evolution will not be easy, the cost of failing to do so would be significant.

Australia’s very successful recent economic performance provides valuable insights into the types of decisions needed to enhance opportunity for all Australians, while providing a solid foundation for continued national prosperity.

Our continued prosperity relies on making better use of our natural, man-made and human resources. This is not a simple task and necessarily involves some difficult tradeoffs. Subjecting policies to the following tests will inform decision-making.

• Do they improve prospects of sustaining and improving the quality of our natural, man-made and human resources?
• Do they improve the prospects of public and private resources being used more productively?
• Do they promote participation in the paid and voluntary workforce?
• Do they make the economy more resilient and adaptable to possible shocks and challenges?
• Are they cost effective and sustainable in the long term, irrespective of whether their objective is achieved through taxation, expenditure or regulation?

---