National Policy:

Murphy Model 600 Plus (MM600+)

Development

In 1997 Econtech developed the Murphy Model 303 (MM303) under contract to a state government to estimate the effects of indirect tax reform on industries and businesses. MM303 modelled the production of over 300 product groups by 107 industries.

In 2000, the more-detailed MM600+ model was developed from our original MM303 model under a contract with the ACCC. MM600+ has 108 industries that produce 672 products, making it six times more detailed than any comparable model. This high level of detail is crucial for pinpointing the effects of changes to government policies on businesses, industries, prices and economic activity.

Features

  • MM600+ distinguishes 672 products, making it six times more detailed than any other model. MM600+ achieves this high level of detail using unpublished input-output data obtained electronically from the Australian Bureau of Statistics (ABS).
  • MM600+ specifies the existing and new indirect tax systems in detail. In developing MM600+, an extensive review was undertaken covering the sales tax and GST treatments of each of the 672 products. Also, the tax cuts on fuel are accurately allocated across the different transport modes.
  • MM600+ has been used to provide estimates of changes in costs and prices due to the New Tax System based on ACCC price exploitation guidelines.
  • MM600+ also provides estimates of expected long-term changes in costs, prices, and production volumes due to the New Tax System, to assist your business planning and to inform economic policy.

Documentation

Click here to download a document containing information on MM600+:

download guide to MM600+ by Econtech

Consulting

MM600+ is used extensively in our industry consulting work.

For more information, email Jodie Patron or phone her on (02) 6295 0527.

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