Abstract
This report assesses the immediate impact on the economy and jobs from a proposed package of tax reforms in response to the South Australian government’s State Tax Review.
The estimates of economic impacts, both the direct impacts in the affected sectors themselves and the flow-on impacts across the broader economy, presented in this report are based on an input output model. The model is framed in the context of simple Keynesian multipliers, and presumes that the economy will expand without constraint. The model used in this study is the RISE model of the SA economy (Econsearch, 2013). The analysis presented here is undertaken independently by WISeR using this model.
Estimates of economic impact are presented in terms of direct, flow-on and total impacts. Direct or initial impacts refer to the impact of the assumed dollar increase in sales directly linked to the increase in capital expenditure. Associated directly with this dollar increase in output is an own-sector increase in household income used in the production. Household income, together with other value added revenue, provide the total Gross State Product (GSP) from the production of each dollar of output. Also associated directly with the dollar increase in output is an own-sector increase in employment, represented by the size of the employment coefficient. The employment coefficient represents an ‘employment/output’ ratio and is usually calculated as 'employment per million dollars of output'.
The estimates of economic impacts, both the direct impacts in the affected sectors themselves and the flow-on impacts across the broader economy, presented in this report are based on an input output model. The model is framed in the context of simple Keynesian multipliers, and presumes that the economy will expand without constraint. The model used in this study is the RISE model of the SA economy (Econsearch, 2013). The analysis presented here is undertaken independently by WISeR using this model.
Estimates of economic impact are presented in terms of direct, flow-on and total impacts. Direct or initial impacts refer to the impact of the assumed dollar increase in sales directly linked to the increase in capital expenditure. Associated directly with this dollar increase in output is an own-sector increase in household income used in the production. Household income, together with other value added revenue, provide the total Gross State Product (GSP) from the production of each dollar of output. Also associated directly with the dollar increase in output is an own-sector increase in employment, represented by the size of the employment coefficient. The employment coefficient represents an ‘employment/output’ ratio and is usually calculated as 'employment per million dollars of output'.
| Original language | English |
|---|---|
| Publisher | Australian Workplace Innovation and Social Research Centre, The University of Adelaide |
| Number of pages | 13 |
| Place of Publication | Adelaide |
| Publication status | Published - 2015 |
| Externally published | Yes |