Todays report that Labors plans will dampen consumer spending and GDP are based on erroneous analysis devoid of reality.

Capital Economics needs to re-issue this note and apologise to clients and the general public for such an appalling piece of analysis and the litany of errors about Labor policies which feature in it.

The centre piece claim, which is completely unfounded, is that Labors tax measures would increase revenues by $17 billion a year.

If youre going to publish a note about the impacts of Labors policies, in the first instance, you better make sure you understand and can explain what they are.

Obviously Capital Economics has access to modern communication technology as evidenced by the fact theyve distributed this ridiculous note around the world, so it beggars belief they wouldnt have called, texted or emailed questions about what Labors policies actually are.

In estimating the impacts on consumer spending and GDP, the analysis fails to take account of:

• The impacts of grandfathering which sees Labors policies introduced gradually over time reducing the direct impact on the economy
• Labors bigger tax cuts over the next 4 years, which would see a bigger boost to consumption than the governments tax cut plan
• Labors Australian Investment Guarantee which will see a new 20% upfront accelerated deprecation for all tangible and intangible investments
• Despite the fact theyve guessed (wrongly) the impacts of our tax policies, they then fail to incorporate the positive impact of Labors public investments in health, education and skills.

The analysis also goes on to falsely attribute a series of policies to Labor that would negatively impact on GDP, such as Royal Commission into the pricing policies of energy companies and that wed also cut migration.

Capital Economics also falsely claims Labor hasnt put a cost on its commitments to TAFE.

Labor has the boldest reform agenda for any opposition in 25 years. We are happy to argue these reforms based on facts, but we will never let fictitious and poor analysis drift by without calling it out.