Media Releases

31 July 2025

Unshackling Australia from legacy policies, industries and vested interests
White Paper aims to lift productivity and growth, address intergenerational inequity and transition Australia to a low-cost, low-emissions economy.

Independent MP for Warringah Zali Steggall has today launched her Re-energised Economy White Paper, a comprehensive economic plan to lift productivity and growth, address intergenerational inequity, repair the budget and build a future-focused low-cost, low-emissions economy.

Developed in partnership with economist Dr Emma Aisbett, the White Paper seeks to challenge the political and economic timidity of successive governments that have tinkered around the edges of critical reform, leaving Australia’s economy less dynamic and resilient than it should be. The paper also forms the basis of Ms Steggall’s contribution to the upcoming Economic Reform Roundtable.

Zali Steggall MP’s Re-energised Economy White Paper aims to stimulate bolder, transformative thinking and reform that:

• Removes roadblocks and red tape to unleash Australia’s unique strategic advantages in low-cost, low- emissions energy and technology
• Supports SMEs to innovate and create jobs in the industries of the future
• Responsibly raises revenue to repair the budget
• Helps young people thrive and become the innovators of the economy

Zali Steggall MP’s Re-energised Economy plan includes a range of policies including a call to phase out and re-invest fossil fuel subsidies, more support for small business innovation, the introduction of a climate resilience levy on fossil fuel exports, the phasing out of capital gains tax discounts to improve housing affordability, the appointment of an independent Special Envoy for AI, and the introduction of a carbon border adjustment mechanism (CBAM).

“Decades of complacency and a failure to pursue meaningful economic reform has stifled innovation, slowed productivity and allowed unnecessary barriers and rising costs to weigh on businesses, households and our economy while allowing intergenerational inequity to grow,” said Ms Steggall.

“While the Coalition is in the wilderness arguing about net zero, Labor remains shackled to legacy policies, industries and vested interests. This plan outlines a smart and positive pathway for re-energising and future-proofing our economy, addressing intergenerational inequity, repairing the budget and lowering costs for all Australians.”

“Housing policy is a focus of the paper as it is not only an intergenerational fairness issue, but also an economic and productivity issue. Our economy and innovators will not realise their potential if young people are locked out of affordable and secure housing. People with a secure home are more likely to invest in their own education, to participate in the labour market and to innovate. It’s time to remove demand-side reforms from the ‘too hard basket’ and begin a serious conversation about smart reforms needed to complement supply-side measures,” said Ms Steggall MP.

“The Government’s Economic Reform Roundtable cannot be a stunt aimed at delivering predetermined outcomes under the guise of consultation. If the Government is serious about economic reform, budget repair and boosting productivity then we need to be talking about ambitious reforms that phase out the fiscal framework that unfairly props up fossil fuels and boost the clean industries of the future, make it easier for young people to own a home, tackle the risks and opportunities in AI, and responsibly raise revenue from disproportionate profits in legacy industries. Enhancing resilience must also be a priority, as protecting our economy from the worsening impacts of climate change is central to enhancing productivity,” said Ms Steggall MP.

Zali Steggall MP’s Re-energised Economy White Paper is available at: zalisteggall.com.au/re-energised economy. Specifics include:

A focus on transitioning Australia’s economy away from fossil fuels to the industries of the future. Proposed reforms range from phasing out fossil fuel subsidies to:

• Ending all direct and indirect taxpayer subsidies for emission-intensive projects.
• Introducing a CBAM to avoid emissions leakage and create markets for Australian clean exports.
• Introducing a fossil fuel export levy that is level with the Safeguard Mechanism to ensure exporters cannot externalise costs, broadening the Safeguard Mechanism to ensure it has economy-wide reach, and strengthening reforms to the Petroleum Resource Rent Tax (PRRT).
• Increasing funding for innovation, research and development by SMEs and sustainable enterprises, and appointing an independent Special Envoy for AI and the Future of Work.

Addressing intergenerational inequity by empowering young people, including long-overdue demand-side reforms to housing is also a focus of the White Paper. Proposed reforms include:

• Phasing out CGT discounts for multiple investment properties. The PBO estimates this would raise $410 million over the 2025-26 forward estimates.
• Raising taxes on foreign investors and better enforcement of foreign investment laws.
• A $30,000 climate resilience support program to help households and businesses invest in upgrades that reduce their climate-related risks and costs.
• Limiting negative gearing tax breaks to rental properties that meet minimum energy standards and incentivising landlords to invest energy efficiency, solar panels and batteries for rental properties.