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this high level of detail using unpublished input-output data obtained electronically from the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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