As the gap between rich and poor in Australia widens, multi-generational disadvantage becomes entrenched. This corrodes the very foundations of liberal democracy, and threatens the capacity of government to provide equality of opportunity. This paper presents a liberal perspective of Australia’s productivity slowdown that recognises productivity growth is dependent also on equality of opportunity.

Key recommendations:

• Raise social security payments for working-age Australians
• Construct more social housing in more affluent areas
• Return to the original principles of the NDIS and limit the scope of eligibility
• Introduce a resource super profits tax and natural-resource based sovereign wealth fund
• Wind back deductions for negatively geared investment properties