Peter Costello commented on Thursday that the big challenge now was how to continue the growth cycle. But the Prime Minister appears to have no doubt it will go on and on. He says the outlook hasn't been better for generations. The rhetoric of small government has given way to the defence of an activist government role. Maybe, but more often he has talked down the government role, rather than talking it up.
Many people have incomes too low to make tax cuts much of an attraction.
John Howard is determined to avoid a political vacuum. He now believes, after some bad experiences in the first term, that as soon as one project is done, others must be put on the agenda. The Government is still digesting the problems of tax reform, but Mr Howard yesterday had his eyes firmly on the post-tax program. He was vague, but ambitious. As for what happens in real time, Government sources say Mr Howard would like to be able to abort the Timor levy if the numbers are better than expected when the Budget is being framed.