Faster return to surplus promised in coalition costings
Andrew Brown |
A crackdown on “wasteful” spending will fast-track the budget’s return to surplus if the coalition wins the election, the shadow treasurer says.
After days of speculation, the opposition on Thursday unveiled policy costings headlined by a budget bottom line improvement of $14 billion over the next four years.
Shadow treasurer Angus Taylor said the coalition would return the budget to surplus faster than Labor by paring back spending.
“This is the biggest improvement in the budget position since the current costing conventions were put in place almost 15 years ago,” he told reporters in Sydney.
“We’ve laid out a $40 billion improvement in the debt position over (the next four years).”
Labor’s costings, released on Tuesday, showed a $7 billion budget improvement, delivered through a slash in spending on consultants and labour hire as well as increasing international student visa fees.
The coalition costings said the budget deficit would increase by $5.6 billion in the 2025/26 financial year and be $2.3 billion worse off the following year, compared to pre-election forecasts.
However, the next two financial years would see improvements of $9.5 billion and $2.2 billion.
Spending cuts would come from a hiring freeze and natural attrition of 41,000 Canberra-based federal public servants, opposition finance spokeswoman Jane Hume said.
The plan would bring the public service “back to a sustainable level, while protecting front-line services delivery and national security positions”.
“Good economic management is about preparing for the future, not just patching up the present,” she said.
The costings also include plans to cut at least two of the Labor government’s off-budget investment funds: the $10 billion Housing Australia Future Fund, set up to build 30,000 new homes, and the $20 billion Rewiring the Nation Fund.
Other cuts include scrapping student debt relief worth $16 billion, and unwinding Labor’s decision to lower tax concessions for superannuation accounts with balances higher than $3 million.
The coalition came under fire from the government for releasing its costings late in the campaign – however, it was released at the same point in the election as Labor did when it was in opposition at the 2022 poll.
Opposition Leader Peter Dutton said the costings showed the coalition had what it takes to manage the books.
“Australians know from their own experiences the economy will always be better managed under a Liberal-National government,” Mr Dutton told reporters in Brisbane.
“That lower debt means interest rates come down.”
The opposition’s controversial plan to build seven nuclear reactors would set the budget back by $118 billion through to 2050.
Deputy Prime Minister Richard Marles said on Thursday the costings from the opposition should not be taken seriously.
AAP
