Capitol, Business & Monetary policies
Australians Unified believes running balanced budgets means funding ongoing government activities entirely through taxes and investments while encouraging growth in renewables, manufacturing, and primary resources. It focuses on developing markets tied to national interests and prioritizes domestic infrastructure and business investment over international borrowing.
Governments can acquire assets by borrowing against their own unencumbered assets through a government banking system. Interest costs and depreciation, treated as expenses, are covered by taxation. This method keeps the budget balanced, ensuring net worth stays at zero, with assets valued at market rates following international accounting standards.
Balanced budgets prevent budget manipulation aimed at achieving optimal economic activity levels.
When governments borrow to invest in financial assets, the returns, after adjusting for risk and management costs, often underperform compared to private financial investments. Such borrowing can limit funds for private sector borrowers, increase borrowing costs, and distort the market. Ultimately, supporting the CGS market provides targeted industry assistance to a small financial sector group while creating net costs for the broader economy.
International Trade
Australia can transition from commodity reliance to value-rich, resilient exports by integrating green industrial policies, diversifying markets, and optimizing logistics. Here are the key strategies:
Pivot to green, value-added exports: Develop downstream industries for critical minerals, such as refining lithium and rare earths, producing cathode/anode materials, and manufacturing battery cells. Scale up green steel, hydrogen, batteries, and clean metals to tap into a $333B green export opportunity by 2050, driven by global decarbonisation.
Expand green hydrogen and derivatives: Create export-grade green hydrogen, ammonia, and methanol while establishing electrolyser production and port bunkering facilities, targeting Asia and Europe. This positions Australia as a reliable, low-carbon energy supplier amid stricter climate targets and carbon border regulations.
Diversify markets and reduce risks: Build stronger connections with Southeast Asia, India, Europe, and the Middle East to mitigate dependency on single markets. Leverage Austrade programs to help businesses navigate new markets, attract investment, and overcome regulatory challenges.
Enhance trade infrastructure and logistics: Upgrade ports, rail networks, and freight corridors with intermodal hubs, automated operations, and cold-chain systems to lower costs and improve time-to-market for high-value goods. Streamline trade with digital tools like e-documentation, customs pre-clearance, and supply chain data integration to boost efficiency and reliability.
Australian Business Development
Australia's manufacturing sector, which once made up nearly 30% of GDP, has declined to about 6% due to factors like outsourcing, the Lima Agreement, and overseas production. Despite this, the nation’s rich natural resources, particularly in mining, present significant opportunities for future economic growth. By tapping into expanding global markets, Australia can create long-term wealth and reshape its economy. Investing in green robotic factories and revising political strategies could strengthen supply chains, enhance sustainability, and boost exports. Encouraging local and international manufacturing within Australia is a vital step in this vision.
📉 The Decline of Manufacturing
In the mid-20th century, manufacturing accounted for nearly 30% of GDP, employing a large portion of the workforce. Over time, outsourcing, trade liberalisation, and agreements like the Lima Declaration shifted much of the production offshore. Today, manufacturing contributes closer to 6% of GDP, leaving Australia heavily dependent on raw resource exports.
⛏️ The Resource Advantage
Australia is abundant in critical minerals like lithium, copper, and rare earths, as well as energy resources and agricultural output. With global demand for these resources surging—especially due to the energy transition and digital economy—there’s a chance to add value domestically through advanced processing and manufacturing rather than exporting raw materials.
🤖 The Future: Green Robotic Factories
Automation and robotics could make domestic manufacturing viable again, even with higher labour costs. Green factories powered by renewable energy would align with global sustainability goals, making Australian-made products more appealing. This approach could lead to a new era of advanced manufacturing, focusing on batteries, EV components, hydrogen technologies, and precision engineering.
🏛️ Political & Strategic Shifts
Industrial policies could prioritise reshoring critical supply chains, promote sustainability, and boosting domestic manufacturing capacity. This would help reduce reliance on exports while fostering innovation and economic resilience.
Infrastructural Change
The Australian Government's legislative policies to sell off significant parts of its core infrastructure have contributed to a steady decline in living standards. Other countries have gradually drained Australia's wealth, leaving everyday Australians to bear the burden of rising taxes and a growing cost-of-living crisis. Combined with the ALP government's push toward net-zero emissions and continued privatization, Australia's infrastructure needs remain complex, spanning various critical sectors for economic growth. Below are key infrastructure areas Australia should prioritize to boost its economic potential:
Transportation
Efficient transport networks connect resources to industries, people to jobs, and goods to markets.
- Upgrade roads and highways to ease congestion and improve freight efficiency.
- Expand rail networks for passengers and freight, especially linking regional areas to ports.
- Modernize ports and airports to meet increasing trade and tourism demands.
Impact: Enhances productivity, reduces logistics costs, and strengthens Australia's global trade role.
Energy
A reliable, affordable, and sustainable energy supply supports industrial growth and household needs.
- Expand renewable energy infrastructure (solar, wind, hydro).
- Strengthen transmission networks to connect renewable projects to cities and industries.
- Invest in energy storage solutions (batteries, pumped hydro) for grid stability.
Impact: Lowers energy costs, supports decarbonization, and attracts investment in energy-intensive sectors.
Water and Sanitation
Water security is vital for agriculture, industries, and communities, especially in a climate-impacted nation like Australia.
- Build dams, pipelines, and desalination plants to secure water supply.
- Expand wastewater management and recycling systems for sustainable use.
Impact: Ensures long-term water availability for all sectors and mitigates climate-related water challenges.
Government Bank and Insurance
Infrastructure Bank model stands out from institutions like the Clean Energy Finance Corporation (CEFC) and Infrastructure Australia by emphasizing sovereign, broad-based infrastructure funding for projects like dams, baseload power, roads, and ports rather than focusing solely on clean energy or advisory roles. This model would directly build and own infrastructure, utilizing equity, bonds, and the ADF’s capabilities for project delivery.
Unlike traditional approaches such as public-private partnerships (PPPs) and foreign capital investment, which rely on private sector involvement and foreign investors, the Infrastructure Bank would be entirely government-owned and focused on self-sufficiency. It would utilize bonds tied to specific projects for funding and retain ownership of assets within Australia. By leveraging the ADF’s engineering and logistics expertise, the Bank aims to deliver projects more efficiently and independently.
Instead of merely advising or financing like Infrastructure Australia or the CEFC, the Bank would directly execute projects. It also proposes tackling inflation by reducing structural costs in areas like energy, water, and transport, rather than depending on monetary policy alone.
Key benefits include greater national sovereignty, reduced reliance on foreign investment, faster regional project delivery, job creation, and providing a transition pathway for veterans.
The Lessons of the past bought us to the present, the investment into our future directions brings about the prosperity and growth of a unified Australia."
Oliver Hartman