Jozef Imrich, name worthy of Kafka, has his finger on the pulse of any irony of interest and shares his findings to keep you in-the-know with the savviest trend setters and infomaniacs.
''I want to stay as close to the edge as I can without going over. Out on the edge you see all kinds of things you can't see from the center.''
-Kurt Vonnegut
Peter Hartcher is political editor and international editor
Francis Fukuyama didn’t get annoyed with me for accusing him of being almost unAmerican. Probably the world’s most famous political scientist, he was born in the USA and lives there still. I wasn’t charging him with treacherous loyalties or politics but of an almost unAmerican modesty.
He is, notoriously, the author of The End of History and the Last Man, published 34 years ago and still selling in many languages around the world. The first half of the book’s title has been used by the leaders of the great powers and high school debaters and innumerable others in between. Not to embrace it but, almost universally, to reject it. “It might be the most maligned, unfairly dismissed and misunderstood book of the post-war era,” wrote Paul Sagar of King’s College, London.
Critics denounced the idea that liberal democracy’s triumph over communism could have delivered the ultimate model for society – “the final form of human government”. The concept of the “end of history” was rejected by dictators and democrats alike. Including Xi Jinping, Vladimir Putin and Joe Biden. Margaret Thatcher is supposed to have heard the book’s title and expostulated: “The end of history? The beginning of nonsense.”
Fukuyama has borne all this stoically, patiently. “I have been asked several times a week over the past three decades whether I wished to recant my argument,” he writes in his new book. “None of the individuals asking have read more than the title of my essay or book. In particular, none bothered to read the last five chapters of my book, which dealt with the problem of the Last Man.”
He’s never attacked his critics personally or rushed to defend himself. Famous American public figures are not known for their restraint. But that’s only the beginning of his modesty. He might well have titled his new book I Was Right. Because he has never argued that events, history-making events, would cease. He has never claimed that economic and political liberalism would go unchallenged. Only that events wouldn’t produce a better alternative. For the simple reason that the main locomotive of history is the human struggle for recognition.
Where Marx said it’s all about material gain, Fukuyama says that it’s truly about our craving for recognition of our fundamental dignity. “For most of human history, this led to an unequal contest between masters and slaves, until the advent of the French Revolution, which established the principle of equal recognition as the only rational solution to the human problem,” says Fukuyama.
It’s not a new idea. The ancient Greeks called this innate desire for recognition “thymos”. The phrase “the end of history” itself is taken from the work of a Russian-born philosopher, Alexandre Kojeve, who died in 1968. Funnily enough, Margaret Thatcher mocked Fukuyama’s title but actually shared his conclusion that political and economic liberalism are the best form of human organisation. Biden, too, yet he feared China’s challenge to its survival.
And who is offering a better vision for the organising of society? Right-wing populists are good at demolition but unable to build anything better. “These right-wing populist parties aren’t good at governing and they don’t deliver what they promise,” Fukuyama tells me. “Look at Brexit. They didn’t change the level of immigration one bit.” Trump, of course, is the prime exhibit. Promising no new wars and lower prices, he’s delivered the exact opposite.
And the left has no coherent vision, either. Young Americans are reviving talk of communism: “The word is being thrown around by kids who don’t know what it means.” Progressives in the US, notably the Democratic Socialists of America, have a nonsensical grab-bag of what Fukuyama calls “small bore” ideas like free bus rides and taxing billionaires together with unrealistically radical proposals to “defund the police” and abolish the Senate.
Doesn’t China present an alternative model to liberal democracy? “There are still big questions about both the political and economic sustainability of the China model. If they are still doing well relative to the US in another generation, then I would concede it may be a real alternative, though one that will be hard to universalise.”
So how to explain today’s wild political thrashings? “The absence of plausible visions for a better future society means that politicians and activists have to whip people into panic over how bad the present it.” A “focus on real reform is boring”. The great struggles of ideology and history had been fought and won, and now people “struggle for the sake of struggle”. “We see this now on both the extreme right and left”.
Fukuyama acknowledges that extreme inequality is a problem that needs redressing. But populist anger, he says, is “driven much more by resentment against a society that does not distribute respect equally”. It demands a redistribution of respect. That doesn’t require a revolution.
Which brings us to the Last Man. His new book is titled In the Realm of the Last Man, a place we’ve been living in for some time now. “The problem,” according to Fukuyama, “is that the peace and prosperity brought about by a liberal order based on equal recognition is not enough for many people. “They do not want to be recognised as the equals of every other person on earth; they want to be recognised as superior in some respect.” Fukuyama nominated Donald Trump as the standout example, even in his original book.
Not content with thymos, Trump demands megadoses of thymos, a condition Fukuyama calls “megalothymia”. He didn’t foresee Trump as president but, as Paul Sagar attests, “he got closer than most” in recognising the personality that would thrive In the Realm of the Last Man. Fukuyama’s modesty is such that, in his new book, he doesn’t remind us of this prescience.
Australia, after a 10-year lag, seems to be approaching American levels of populist anger. Fukuyama, who has travelled a number of times to Australia, offers this as his only advice to us. The mainstream parties, he says, “ought to think about alliances” with One Nation. “That defanged populist parties in Austria, Denmark and the Netherlands. It’s distasteful but it reduces their impact.” Perhaps that’s why Pauline Hanson rejects the idea of any coalition with the Liberals.
Fukuyama’s suggestion of enfolding the far right is the exact opposite of the German “firewall” policy, under which mainstream parties refuse any coalition with the far-right Alternative for Deutschland.
Fukuyama notes the attack on Australia’s Helen Haines last week, a symptom of “social” media and political anger. He says he fears more violence could follow the US midterm elections next week: “There’s a lot of anger and hidden violence in the way we deal with each other. If the Republicans lose control of Congress, Trump won’t move to the centre and be more reasonable. He will accelerate his threats and the crazy things he wants to do to his enemies. “I am a little worried about this period after the midterms. It’s surprising that there haven’t been more acts of violence and attempted assassinations.”
A final measure of his modesty is his generosity in attributing his success to others, including an Australian intellectual, the late Owen Harries: “Owen played an important part in my life.” As the editor of a Washington journal, Harries spotted Fukuyama’s talent and commissioned him to write the essay that formed the basis for The End of History and the Last Man.
Accused of modesty, Fukuyama just chuckles: “Imagine if I were Donald Trump.” The world is oversupplied with Trumps. Even America’s voters seem to be reaching the same conclusion.
Peter Hartcher is political editor and international editor of The Sydney Morning Herald and The Age.
Minns, who has repeatedly rubbed up against Prime Minister Anthony Albanese on issues ranging from budget management to climate policy, was clinging to minority government amid growing concern within NSW Labor that the state party was being dragged down by the federal government’s unpopularity.
Nothing to see here: Chris Minns and Anthony Albanese at the NRL grand final early this month.
On Tuesday, Minns effectively dismissed the prospects of the NSW Coalition opposition, saying the key battle on March 13 next year would be between his government and One Nation.
Reflecting on a new poll that showed federal support for One Nation in the Hunter region had surged to 33 per cent, with state support about the same, Minns said “that’s the truth” when asked whether One Nation was now the unofficial opposition.
“By any measure, [One Nation NSW leader] Mike Newman will either be the premier or the opposition leader after March 13,” Minns told 2GB Radio.
“Now, I’m a Labor person; I’m not a One Nation supporter. I don’t say that lightly. But you can’t look at 12 months’ worth of polls, poll after poll, and say, ‘oh, but look, when people actually get in the polling booth, they’re going to do something completely different’.
“When has that ever been the case?”
A NSW government source, speaking on condition of anonymity, said the tarnished Labor brand in Victoria was also a liability, but confirmed Minns would maintain a centre-right agenda in contrast with what he viewed as the Albanese government’s centre-left agenda.
A month ago, just after federal government spending was blamed in part for the Reserve Bank lifting interest rates, Minns took a veiled swipe at Canberra, stressing his administration had exercised fiscal restraint and made tough decisions to offset new spending to avoid stoking inflation.
This month, Minns also celebrated the 19-year extension of a massive coal mine in the Hunter Valley as a major win for regional jobs, shrugging off the regulator’s estimate that it would add 800,000 tonnes of carbon emissions, in stark contrast to the federal government’s focus on decarbonisation.
The state government also promised to rush new laws through parliament to approve another major coal extension in the Hunter to counteract a High Court ruling on emissions that threatened to stop the project.
It defied the federal government by moving to include gas in its capacity investment scheme.
Before that, the premier also differentiated himself from federal Labor by speaking in favour of a clampdown on immigration, arguing NSW – especially Sydney, which received the bulk of new arrivals – did not have the housing or infrastructure to cope.
Federal One Nation MP Barnaby Joyce did not dispute the poll numbers, which a Labor source said accorded with its internal research, but warned against hubris.
“I’m happy with the situation, but I’ll never take anything for granted,” said Joyce.
“Let’s focus on tomorrow before we focus on whether we’ll become ministers or not.”
The polling was commissioned by Advent Energy, which holds the petroleum exploration permit-11 off the NSW Hunter and Central Coast regions.
The polling, conducted by data and insights firm Pureprofile, canvassed 1029 voters in six Labor-held federal electorates in the Hunter and Central Coast – Newcastle, Hunter, Paterson, Shortland, Dobell and Robertson – with some responses from southern sections of the Nationals-held seat of Lyne. It was conducted between September 29 and October 16.
If a federal election were held today, it found Labor would poll 29.4 per cent in the region, compared to 33.3 per cent for One Nation, 13.9 per cent for the Coalition and 16.1 per cent for the Greens.
If a NSW election were held today, Labor would poll 32.1 per cent, the Coalition 14.2 per cent, One Nation 32 per cent and the Greens 16.2 per cent, the polling found.
Phillip Coorey is The Australian Financial Review’s political editor based in Canberra. He has covered federal politics since 1998, beginning at The Advertiser before serving as a New York correspondent for News Corp and later as chief political correspondent at The Sydney Morning Herald. A two-time winner of the Paul Lyneham Award for press gallery excellence, he joined the AFR in 2012 and writes the weekly Canberra Observed column. He is a regular commentator on ABC TV’s Insiders program. Connect with Phillip on Facebook and Twitter. Email Phillip at pcoorey@afr.com
Complaints against the ATO have surged 180 per cent in two years as the Tax Ombudsman warns mounting interest charges are making tax debts ‘impossible to pay back’.
By Jason Morrison
The Taxation Office’s aggressive push to rake in billions amid record government spending has sent complaints soaring, leaving struggling businesses and households facing the “impossible task” of repaying mounting tax debts.
The Tax Ombudsman has raised concerns about the taxman’s hardline debt collection tactics, warning that mounting interest charges and interest rates topping 11.5 per cent, are pushing households and small businesses to the brink.
Complaints about the ATO have soared 180 per cent in two years, including a 74 per cent jump in the past 12 months, with 2376 grievances lodged since the start of the year.
Tax Ombudsman Ruth Owen warned the increasingly hard line approach could not come at a worse time.
The Tax Ombudsman has said her office has received a 180 per cent increase of complaints about the ATO.
“Many Australians are facing financial distress and we are seeing increased complaints about how the ATO is collecting tax debt owed and how interest is applied, often making the amount due impossible to pay back,” Ms Owen said.
Crucially, Ms Owen said most people seeking her help were not tax dodgers, but people genuinely trying to pay what they owed.
“You might be surprised to know that most people who complain to me are actually trying to pay their tax,” she said.
One Nation leader Pauline Hanson has accused Labor of using pressure tactics on businesses to bankroll Labor’s spending.
“Jim Chalmers has already brought businesses to their knees with his terrible budget. Now, under his watch, the ATO is shaking down struggling businesses because Labor can’t control its spending,” Senator Hanson said
“The Treasurer should get his own books in order instead of squeezing the life out of Australians trying to keep their businesses afloat.”
The Coalition has also accused the ATO of using automated debt collection systems to harass small businesses over alleged unpaid superannuation.
Deputy Liberal leader Jane Hume said threatening people in tough times is a low blow.
“Jim Chalmers has never had to run a small business and proves every day by the way he regulates and taxes them”, she said.
The Opposition plans to grill the government and tax office chiefs over the way it is chasing outstanding money.
This latest controversy follows a furious backlash over the ATO’s “tone deaf” plan to stop businesses paying tax bills by credit card.
The proposal threatened to make life harder for cash-strapped operators before the prime minister intervened to delay the ban following a Daily Telegraph campaign.
The taxman’s crackdown has coincided with a surge in corporate insolvencies, with more than 14,000 companies entering administration in the past financial year.
In July alone, the ATO launched 148 winding-up applications against businesses, accounting for almost a third of all applications.
Anthony Albanese’s office has fired embattled accounting and advisory firm KPMG, partially blaming “quality” for the brutal move.
The decision to fire KPMG as the internal auditor of the Department of Prime Minister and Cabinet was linked to performance issues and “external factors” stemming from KPMG senior audit partners misusing corporate clients board documents to try to win work.
Cameron Gifford, who is the deputy secretary of the governance and corporate group at the DPMC, told a Senate estimates hearing that KPMG had been fired as one of two firms contracted for internal audit services.
“We had two different providers … there were differences in terms of the quality and the substance that was being received,” said Mr Gifford, adding that on that basis KPMG had been fired under a specific “convenience” clause, while the other firm, McGrathNicol, was retained.
Cameron Gifford at Parliament House in Canberra. Picture: Martin Ollman/NewsWire
Greens Senator Barbara Pocock, who had first raised the issue of KPMG being fired as internal auditor, asked Mr Gifford whether KPMG’s services “were inferior?”
But Senator Penny Wong, acting for the prime minister, jumped in before Mr Gifford could explain in more detail what the quality and substance issues he had raised were, declaring Ms Pocock could not tell him how to answer a question.
A subsequent review confirmed KPMG senior auditors improperly accessed and misused confidential board documents and private-sector client data to gain an unfair advantage in winning lucrative audit tenders.
The crisis led to the resignations of top executives including the firm’s chief executive and chairman, head of audit, head of human resources, and general counsel. The firm’s chief operating officer Eileen Hoggett was fired and has taken legal action to uncover more detail about why KPMG took this action.
Ms Hoggett was found to have printed out confidential board documents belonging to one client, Lendlease, to help KPMG’s bid to win the audit work of Westpac, which shared a common director.
Mr Gifford said the shocking revelations were “certainly relevant to our considerations,” to fire KPMG.
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“We had two internal audit providers, so it was a consideration not just about those external factors that were going on in terms of the incidents in relation to KPMG’s conduct, but also that the services that we were receiving under that contract.”
Earlier this month, the Albanese government extended a ban on KPMG being allowed to bid for any of its new work until the end of February 2027, although this excludes many existing contracts that could be rolled over.
Apart from being fired as its internal auditor, the PM&C still retained KPMG on a $89,1000 contract known as licensing and support for KPMG reporting models.
Securities regulator ASIC has oversight over auditors. It is yet to take any action against anyone at KPMG.
Separately, the Tax Practitioners Board on Tuesday released its annual report where it pointed to its work to “target higher-risk behaviour.”
Although the TPB does not oversee financial auditing, many of its registered tax practitioners and accounting firms offer both audit and consulting services.
If a registered entity breaches ethical or professional standards- even within their broader advisory or corporate practice – the TPB can investigate them under its code of conduct and suspend, cancel, or sanction their tax registration.
TPB chair Peter de Cure said its annual report showed its continued focus on protecting the public while supporting a strong and trusted tax profession.
“Our work is focused on protecting consumers and maintaining confidence in the tax profession and tax system. We seek to achieve this by providing tax practitioners with the guidance and services they need to assist them to meet their professional obligations and by taking strong regulatory action where appropriate,” he said.
Tax Practitioners Board chair Peter de Cure. Picture: Martin Ollman/NCA NewsWire
The TPB has not taken any action against anyone connected to the KPMG scandal, but is currently investigating the firm.
Within the TPB annual report, it was revealed that the regulatory body failed on the measure of compliance effectiveness. Only 7 per cent tax practitioners responded to its survey and of that, only 52 per cent agreed the “TPB’s disciplinary actions effectively deter noncompliance.” The TPB required 73 per cent to achieve its target.
Tax Practitioners Board chairman Peter de Cure has been forced to recuse himself from the body’s investigation into KPMG’s data misuse scandal following his failure to comply with conflict of interest rules.
De Cure, a KPMG partner for nearly 25 years until 2013, put a special conflict management plan in place earlier this month preventing him from discussing the probe with staff or fellow board members, after admitting he failed to declare he was briefed by a KPMG audit partner and called the whistleblower a “disgruntled” employee.
Tax Practitioners Board chairman Peter de Cure has recused himself from the body’s investigation of KPMG. Alex Ellinghausen
The special conflict policy specifies that staff at the regulator communicate any KPMG investigation matters via board member and academic Kerrie Sadiq.
De Cure has told parliament he has no ongoing financial or employment links with KPMG but admitted he has attended multiple KPMG-sponsored lunches and that he sits on three boards that are audited by the firm.
“Mr de Cure is a director of three entities that KPMG provides audit services to,” the Tax Practitioners Board said in a response to parliamentary questions from Greens senator Barbara Pocock.
“From time to time, Mr de Cure has attended audit-related lunches for KPMG audit clients. Mr de Cure has disclosed these attendances to the TPB Board.
“To avoid any perception of conflict, Mr de Cure has in past cases excluded himself from any decision-making in relation to matters connected to KPMG. For the current investigation, Mr de Cure will take the same approach.”
The special conflict policy was created after The Australian Financial Review revealed in July that de Cure had failed to disclose a KPMG briefing on the data misuse scandal and criticised the whistleblower.
De Cure also downplayed the body’s investigation into the data misuse in a parliamentary testimony in June, saying at the time the board was “not at this stage conducting a formal investigation” because the allegations were not related to the provision of tax services.
This came despite the body having already repeatedly used its extensive powers to get information from KPMG – powers only available during formal investigations into potential misconduct.
The body plays a critical role in policing the mostly unregulated big four accounting partnerships because it is the only federal regulator with the power to investigate KPMG as a whole. This made it instrumental in uncovering the PwC tax leaks scandal.
The Tax Practitioners Board told a parliamentary committee investigating the claims that de Cure had adopted the special conflict policy due to the “heightened interest and sensitivity” of the allegations.
“I discussed the matter with the [Tax Practitioners Board secretary Andrew Orme], and I agreed that the best course was to recuse myself from any decision-making in relation to the matter,” de Cure told the committee.
De Cure declined to respond to questions about when he had spoken to the KPMG partner about the scandal or on the details of their discussion. He also declined to respond to queries about whether he’d had any communications with any other KPMG personnel about the scandal.
In response to these queries, the body referred to its response to the parliamentary committee despite this letter not dealing with those specific questions.
A spokeswoman for Assistant Treasurer Daniel Mulino, who extended de Cure’s position as chairman until 2029 in March, said, “the government [had] full confidence in the board carrying out its functions under the act consistent with their responsibilities and obligations as Commonwealth officials.”
KPMG has been engulfed in a damaging scandal after a whistleblower, a former executive at the firm, claimed audit partners misused confidential client data and leveraged conflicted relationships to win work.
The claims, many of which have been substantiated, and the firm’s mismanagement of them, have led to multiple senior executives leaving KPMG.
Peter de Cure has sought to assure senator Deborah O'Neill that the TPB is carefully managing any potential conflict of interest he may have with the KPMG investigation, given his previous ties to the firm. ..
Responding to a letter sent to him by senator Deborah O’Neill, TPB chair and former KPMG tax partner Peter de Cure has looked to assure the Senate committee conducting the inquiry into KPMG that any perceived conflict of interest arising from his former role as a partner of KPMG “is being managed with due care, transparency and regard to public interest".
De Cure also acknowledged that he previously referred to the KPMG whistleblower as “disgruntled”, and reassured the parliamentary joint committee that he would recuse himself from KPMG investigations.
In his 21 July letter, he said that soon after becoming aware of the matter, he initially considered avoiding all engagement “of any type with the matter”.
“I came to the view that I had no conflict of interest that would require me to take this step,” he said.
Further, de Cure told O’Neill that following recusing himself from KPMG investigations on 29 June, he discussed with the secretary and adopted a formal conflict management plan after consulting with the board and secretary.
Previous reports said that de Cure did not declare to the TPB that a KPMG audit partner spoke to him about the scandal; despite this, in his letter, he said that he believed that he mentioned this to the board but did not formally raise it and hence was “not recorded in the Minutes of a meeting”.
De Cure’s letter was in response to a letter sent to de Cure by O’Neill on 10 July, which read: “The committee seeks any further information and documentation, including but not limited to meeting notes, strategic management plans and board statements, that may give comfort to the committee that your conflict of interest is being and will be effectively managed now and into the future until the TPB’s investigations and involvement in these matters is fully resolved.”
“The committee notes its expectation that your conflict management processes and practices meet the highest level of integrity and that they will be declared and observed in an ongoing and publicly transparent manner,” O’Neill’s letter read.
“I have recused myself from any involvement in the current KPMG investigation. I have adopted a formal conflict management plan in relation to this matter. This plan clearly sets out steps taken to ensure that I take no part in the TPB’s investigation or decision-making in relation to the matter,” de Cure said in his letter.
“I have no ongoing financial interest in KPMG, and I provide no services to KPMG. I have not been a partner at KPMG since 30 June 2012 (i.e. 14 years ago), and I have not had any type of employment with KPMG since 30 June 2013 (i.e. 13 years ago). I do not have a personal relationship with any of the people subject to the allegations.”
“I have not made any statement that dismisses or downplays the allegations made by the whistleblower. I note that KPMG’s own admission is that the allegations have been accepted.”
Within his conflict management plan dated 7 July 2026, de Cure recused himself from the investigation in the capacity of committing to not discuss the investigation in any way with TPB staff or board members, he said that where practical and appropriate, he will “refer any KPMG related questions to relevant TPВ personnel”, he has appointed the secretary or an assistant secretary communicating with Board member Kerrie Sadiq if the TPB staff want to engage in any matters concerning the investigation.
Further, he committed to “not participate in the discussion and will leave the meeting for the Discussion,” if the matter needs to be discussed at a board meeting or committee meeting.
“I will not engage with KPMG on this issue (including in the context of my other professional commitments), and if KPMG seeks to engage with me on this, I will notify the Board.”
“I trust this response, together with the enclosed conflict management plan, provides the Committee with the assurance it was seeking,” de Cure’s letter read.