After making his mark as a backbencher challenging then treasurer Peter Costello to slash income taxes, new Opposition Leader Malcolm Turnbull wants to streamline the system and pre-empt the Rudd Government’s own inquiry into tax and welfare review, which is being led by Treasury secretary Ken Henry.

The truth is that governments have become so obsessed by the economy that they aren’t always aware of specific instances of “the limitations of markets”. And even at this early stage gaps are emerging between the Rudd Government’s ideals and its performance, with potential pitfalls abounding.

The Rudd Government needs fast-acting remedies for the economy, tax system and environment. Although it took years for the pressure to build up, the Government only has about two years to show despairing Australian families that their 2007 election promises weren’t hollow.