Grattan Institute head Dr Aruna Sathanapally made the common-sensical but important observation that “Australians will have to expect a lower service delivery from the government if taxes don’t go up” (as reported by ABC News).

Prime Minister Anthony Albanese brushed off her concerns saying:

“Academics talk in academic words. What I do is live in the real world, and in the real world, my government’s focused on delivering for people.”

It’s a strange deflection. You don’t have to have worked for NSW Treasury, though Dr Sathanapally has, to realise that taxes are necessary for government services.

In fact, Australia Institute polling research back in 2021 showed that Australians understand perfectly how taxes work “in the real world”:

• Seven in ten (69%) Australians agree with Oliver Wendell Holmes’ quote that ‘taxes are what we pay for a civilised society.’
• Six in ten (61%) agree with the broader statement that “tax is good”.

When asked what they wanted the government to prioritise in the next budget, Australians preferred spending on government services like health, education, infrastructure and income support for people looking for work over tax cuts.

This is not about academics. This is about how Australians access important services, including healthcare, education and infrastructure.