According to The Australian, the sudden change in tax regime has prompted Australia to be labelled a “sovereign risk.”
Although most countries were okay with the established taxes in Australia, the sudden introduction of the Carbon Tax has resulted in difficulties being created for nations to do business with us.
The high prices due to the Carbon Tax has resulted in some of our major trade partners such as China, having a re-think about whether it was truly worthwhile to do business with Australia.
Australia is seen as unstable which not only is not beneficial for our global standing but also economically we will suffer greatly.
IF THE GLOBAL COMMUNITY WERE HIGH SCHOOL, AUSTRALIA WOULD BE THE FLAKY KID. AND NO ONE LIKES THE FLAKY KID.
This is why Australia needs to keep a stable outlook without sudden tax changes. A lack of trade between nations would be detrimental to the Australian economy with the consequences being felt severely by consumers.