Election campaign was 'wasted', leading economist Chris Richardson declares, as sea of budget deficits await Aussies
Labor secured a massive win over the Coalition on Saturday, extending its majority position despite many expecting the Albanese government to be forced into minority with support from the Teals and Greens.
Both major parties made lavish spending promises throughout the campaign, which were denounced by many economists who instead called for restraint to tackle the looming sea of budget deficits.
Chris Richardson, a leading budget watcher, was one of the many sceptics who, alongside urging budget restraint, called for reform to Australia's taxation system as he felt there were 'terrible taxes' and government spending to go with them.
'Problems in the budget have been building up over decades,' Mr Richardson told Sky News Business Now.
'Nobody's really substantially moved the dial on our tax system for a very long time. Basically since the GST.
'We have a bunch of terrible taxes. Things that need to be substantially better. You look at our spending, lots of it is stupid (and) lots that is almost completely wasted.'
He continued to lay into the conduct of both parties during the election, lambasting the big spending promises as the state of the global economy remains uncertain due to United States President Donald Trump's trade war.
'So was the election campaign. It was also wasted,' Mr Richardson said.
'These things weren't addressed, nor was the challenge of a more volatile world.
'It's not the tariffs. It's the cost of the chaos, as the Trump Administration keeps changing its mind and its dollars around tariffs. That is a complication for the world.'
The federal budget has faced increasing strain, with national debt projected to top $1.2 trillion within two years and deficits expected to persist through the coming decade.
Treasury forecasts show deficits continuing into the foreseeable future—including $180 billion in deficits over five years.
S&P Global last week warned the big spending promises of both parties could put Australia's AAA credit rating, which the nation has held since 2003, in jeopardy.
'The 'AAA' rating on Australia may be at risk if election promises result in larger, structural deficits and debt and interest expenses rising more than we expect,' S&P's report read.
'The budget is already regressing to moderate deficits as public spending hits post-war highs, global trade tensions intensify and growth slows.
'How the elected government funds its campaign pledges and rising spending will be crucial for maintaining the rating.'
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