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The Australian
01-05-2025
- Business
- The Australian
Coalition costings: Is this a joke? Am I being pranked?
'The impression you get is that the Coalition is too afraid to come clean on the need to hack into the vast thicket of wasteful government spending.' You can now listen to The Australian's articles. Give us your feedback. You can now listen to The Australian's articles. From the immortal words of Sonia in Gavin and Stacey (a pal put me on to this comedy): 'Is this a joke? Am I being pranked?' This was my reaction to the extremely late-in-the-day release of the Coalition's election costings. A $14bn reduction in the cumulative budget deficits over four years and a $40bn cut to government debt. In fact, the underlying cash deficits are forecast to be higher than Labor's in the first two years of the forward estimates. The gains come in the last two years and are effectively achieved by taking back the recent two-part tax cut Labor has legislated. Just consider those figures in percentage terms. Labor's cumulative budget deficits – underlying cash balances – over the forward estimates total $152bn. So, a cut of $14bn is 9 per cent over four years. The cut to debt is lower, at 3.3 per cent of the estimated 2028-29 total. That figure is definitely a joke. If the Coalition is claiming to be the superior budget manager, these figures are a poor start. In fact, they underline an unwillingness to confront the real fiscal challenges ahead of us; the fact is we are spending far too much. Our scope to collect more by way of tax is also limited by the economic harm tax measures impose as well as the unwillingness of voters to cough up. What I don't understand about the Coalition's costings is that there is a clear intention to cut out whole spending programs, at least in the off-budget account – the National Reconstruction Fund, Housing Australia Future Fund, Rewiring the Nation – as well as refrain from forgiving student debt (estimated cost $16bn). So far, so good. But then a mere $40bn reduction in government debt is achieved. Should I be suspicious of the funding of regional boondoggles so beloved by the Nats? What is this proposed Regional Australia Future Fund? Why is the cut to government debt so inconsequential? Government spending on the development of nuclear plants is not scheduled to commence before the mid-2030s. The impression you get is that the Coalition is too afraid to come clean on the need to hack into the vast thicket of wasteful government spending for fear of the political repercussions of doing so. It's in every department, every program. The NDIS simply cannot go on as it is, even if spending growth is kept to 8 per cent per year. This is around three times the rate at which the economy is likely to grow. In turn, this means spending on the NDIS will be consuming more and more of the economy's output each year. But the Coalition is simply mirroring the ineffective approach of the government in relation to the NDIS. There is a need to confront the wildly dysfunctional state of federal-state financial relations. We really need to kickstart the reform of the federation rather than allow the states to transfer more and more spending responsibility to the commonwealth without any real accountability. The most recently concluded state education agreements are a case in point. Don't get me wrong here: what Labor has offered up in terms of its election costings is complete nonsense. Saving all those billions by not using consultants, cutting back on travel and other expenses – it's just made up. Failing to account for some of the proposed (big) spending – for example, in relation to housing – in its figures is completely unforgivable. So, the idea that Jim Chalmers and Katy Gallagher have miraculously shaved one billion dollars from the cumulative budget deficits over the forwards is total claptrap. The only conclusion to reach is that Coalition or Labor, we are up a creek without a paddle, fiscally speaking.
Sydney Morning Herald
01-05-2025
- Politics
- Sydney Morning Herald
Dutton's shambolic campaign has made it easy for Albanese
Niki Savva usually gets it right about our politicians, this time Peter Dutton (' Dutton stumbles in race of his life,' May 1). His shambolic campaign has made it easier for a rather smug Anthony Albanese. Dutton's Trump-like labelling of the ABC and SBS as 'hate-media' impugns so many first-rate, unbiased presenters. His frequent back-flips on international relationships, his denigration of the teals, the Greens and Indigenous Australians, his preparedness to link up with the likes of Pauline Hanson and Clive Palmer, and his persistence with nuclear manifest has put off many voters. Moreover, the torpid Angus Taylor's release of the Coalition's costings a mere two days before the election shamefully ensures little time to assess their accuracy. As Savva suggests, all of this has jolted a complacent Albanese into action. Doing so might mean Dutton losing an election he might have won, had he not been so arrogant. Ron Sinclair, Windradyne On top of Niki Savva's criticism of Dutton, there's the release of the Coalition's financial statement just two days before the election, giving no time for examination and comment. That's outrageous. Andrew Macintosh, Cromer Alexandra Smith's article brought back memories of my husband and myself reporting to vote for the first time since emigrating in 1982 (' How UberEats killed the democracy sausage,' May 1). In Scotland, we were used to sombre, quiet lining up under the watchful eye of the police. Talking was frowned upon. Think strict libraries of the past. So imagine our initial confusion, then delight, to discover that Australians prefer a colourful, lively, big street party, as they perform their civic duties. Pauline McGinley, Drummoyne The Coalition circus continues. After a series of policy backflips, shadow treasurer Angus Taylor steps on stage to announce how he'll cut the budget deficit by $40 billion over four years (' Dutton promises $40b debt cut as nuclear questions grow,' May 1). But instead of raising revenue – say, by properly taxing the resource sector – he plans to axe the $20 billion 'Rewiring the Nation' fund, most of which has already been allocated for vital energy infrastructure. Cutting 41,000 public service jobs and shelving Labor's student debt relief plan are also part of the act. This isn't smart fiscal reform; it's an unpopular high-risk stunt. And the grand finale? Wheeling out the big white elephant of nuclear energy – a fittingly extravagant and absurd end to the Coalition's show. Amy Hiller, Kew (Vic) The Greens are to the Labor Party what the Nationals are to the Liberal Party. Both are freeloaders, riding on the coat tails of the major parties. They're not good enough or strong enough to govern in their own right, so they hitch their wagons to a senior party and then try and dictate the direction they should take. 'If you don't play ball, we'll withdraw our support,' is the message. Remember Max Chandler-Mather? I'd rather vote teal than support Greens or Nats. Graham McWhirter, Shell Cove It would be ideal to ban political spam texts but I would just like to be able to block them (' PM hates spam texts ' May 1). I don't seem to be able to because they are using the same methods as scammers. Is political spam just a scam? Surely not. Neil Reckord, Gordon (ACT) The self-serving, often 'pythonesque' process that politicians work the elections is like we're watching a chaotic, absurdist play. If ethical reasoning, critical thinking, empathy, and intellectual humility became central pillars of education, over the 'three Rs', voting might shift from a transaction of personal gain to a process of collective responsibility. If people could think critically about the impact their votes have on others, especially those with less power or fewer resources, the whole democratic process could be transformed from a competition for resources to a genuine collaboration for fairness. Alas, I dream. Linda Mayer, Pyree The best predictor of future behaviour is past behaviour. Dutton's negativity knows no bounds. He criticises and flip-flops without providing coherent solutions. Dutton continues to promote division in our society through his culture wars. As for the Coalition's economic performance, inflation was 6.12 per cent and trending up when they were last in power. Meanwhile, under Albanese inflation is heading down, wages are moving up, taxes are going down and unemployment remains low. This calm, methodical style of governance contrasts to the chaotic scandal-ridden previous administration. So what will the future hold? The opposition's negativity and chaos, or Labor's steady progress? Brian Hastings, Drummoyne The politicians know it, the public knows it, the investors getting richer know it, 'negative gearing' is the single most potent force causing the housing crisis. Other matters play into the mix, such as the deregulation of banks and foreign ownership of housing, but these are not as powerful as negative gearing. How is it that some of those who benefit most from this taxpayer-funded handout are the ones who decide that it will continue? We need federal politicians with the courage to make decisions that will benefit the whole community, not just themselves. Penny Rosier, North Epping Churchill said 'The best argument against democracy is a five-minute conversation with the average voter.' Times have changed – now it's a five-minute conversation with the average candidate. John Grinter, Katoomba Cynical ploy The Exclusive Brethren have upped the ante in the hypocrisy stakes and still Dutton doesn't get it (' EB chief's son spotted supporting Liberal Party,' May 1). Albanese is on the money challenging the Coalition as to the 'quid pro quo' for this cult's support, and it is disingenuous for Dutton to claim he has never asked about their religious beliefs. This controversial church, which has on its conscience countless family break-ups, may not allow its members to vote, but their covert support for right-wing politics has a long and well-documented history, both in Australia and overseas. It is typical of the Brethren's mendacity to claim their current campaigning for the Coalition is a spontaneous action by individuals, in a feeble attempt to distance their church from political activity. Of one thing you can be sure – the Exclusive Brethren will stop at nothing to maintain their government-granted charitable status and keep their tax-free millions. Joy Nason, Mona Vale Public fooled by fossil fuel lobby At this stage in human history is it incomprehensible that anyone should suggest that 'the green transition risks losing democratic legitimacy altogether' (' Tide turning on politics of climate,' May 1). The ones who should be losing their democratic legitimacy are the fossil fuel industry, yet their lobbyists continue to wine and dine our politicians. They continue to obtain billions in subsidies, estimated at $14 billion in 2023-24, yet all the while their products are causing irreversible damage to the environment. Why does their 'legitimacy' remain while the green transition is in danger of losing its? Money doesn't talk, it screams. Neil Ormerod, Kingsgrove It's a mystery why so many people fail to recognise the hysterical propaganda disseminated by the $10 trillion global fossil fuel industry, which faces the prospect of reduced profits (' MAGA-style bid to derail clean energy ', May 1). In the US, voters literally voted against themselves after falling for Trump's anti-renewables 'drill, baby, drill' propaganda. Similarly in Australia, the big spending, self-interested anti-renewables lobby continues to demonise clean, cheap energy in support of the Coalition. Another piece (' Tide turning on politics of climate,' May 1) suggests that global anti-renewable lobbying has reached fever pitch with vague and unscientific claims of disaster for countries that abandon fossil fuels. It's tragic. Alison Stewart, Riverview Former British PM Tony Blair says we can't afford the cost off getting to net zero quickly. On that logic, don't spend money on your doctor until you're terminally ill, your dentist until your teeth fall out or your house until it collapses. Prevention is better than cure. Jill Robinson, Randwick Here's a question for the Tony Blair's of this world and their 'we can't afford to get to net zero quickly'. Can we afford the cost of dealing with the damage caused by not getting to net zero as soon as possible? Don't forget, there is a cost to inaction, too. Michael Berg, Randwick There's been no comment about the disastrous Spanish and Portuguese renewables blackout by energy minister Chris Bowen, probably because he's in hiding until Sunday. Paul Haege, Darling Point Shades of green I'm writing in response to the letters from Peter Brown and John Rome about the environmental benefits of EVs, solar power and windmills (Letters, April 30). It's overly simplistic to focus solely on the lack of tailpipe emissions of an EV. What about the approximate 226,000 kg of earth that needs to be mined for a single battery, including child labor and fatalities in the rare earth mineral extraction, as well as the considerable waste generated and the eventual disposal of the entire battery system due to its limited lifespan. Ultimately, assessing the environmental friendliness of EVs depends on where one chooses to draw the line and what aspects of the entire lifecycle are considered. If we isolate the driving phase, then it is technically accurate to say EVs produce zero emissions. But who is that deceiving? Peter Phizacklea, Sydney Songs of joy Letter writers have questioned the strange workings of the Department of Home Affairs over the Ubuntu Africa choir – how do you come to this country for the first time when you are not allowed in because you haven't been here before (' Joy for African choir over visa backflip,' May 1)? Now that public opinion has been informed by this paper, the Department has changed its mind and says the original applications cannot be used but new ones can be made (at extremely short notice). Along the lines of asinine bureaucratic reasoning, one would bet that the information, already stored on a computer, would have to be rewritten by each applicant. Donald Hawes, Peel Cash converter Yes, it's appropriate to hold some of your super, or other funds you rely on in retirement, as cash, just in case things go pear-shaped (' How much of my super should I keep in cash? ' 30 April). But if you haven't made the switch yet, when should you do so? Switching a large amount of your super into cash is just like making a big, one-off withdrawal. Great if you do so before the market has tanked, but not so good if you do so afterwards. If you have the luxury of time, then maybe it would be best to do so gradually. That way the state of the market when you make the switch is averaged. You may not switch at the top of the market, but neither will you regret switching at the bottom. David Rush, Lawson Age-old recipe While I have the greatest admiration for Nagi Maehashi (best, most-used recipe books ever), and don't know Brooke Bellamy's efforts, these plagiarism claims don't hold much water since the 'caramel slice' and 'baklava', as well as Bill Granger's 'Portuguese tarts', are all age-old recipes invented before any of the claimants were born (' Baking bad: RecipeTin Eats v Brooke Bellamy recipe row, ' May 1). How different can any of these recipes be from the 'originals' and still be called by their official names if the recipes are not almost identical. Let's just say, none of you are the rightful owners of any of the recipes, so why don't you have a nice cup of tea and a caramel slice to calm down? Maryan Glaister, Buderim Nagi Maehashi and Brooke Bellamy need to get in line. That's my Auntie Joan's caramel slice recipe from the 70's they are arguing about. Susan McMillan, Cherrybrook Surely baklava and caramel slices have been around much longer than either of these cooks. But what a tasty little earner for their lawyers. Kath Maher. Lidcombe
West Australian
01-05-2025
- Business
- West Australian
Federal election 2025: Coalition loads up on early spending but promises savings down the track
The Coalition intends to shave $40 billion off Australia's long term debt if it wins the election on Saturday, announcing $14b in savings over the next four years. But election promises will see the Budget bottom line worsen over the next two years than forecast under its Pre-Election and Fiscal Outlook, due to $7.8b in spending commitments. Over the longer term the Coalition plan is to improve the Budget bottom line by almost $14b by scrapping Labor's $17b in income tax cuts, the $20b Rewiring the Nation program and the $10b Housing Australia Future Fund — as well as banking savings from a plan to reduce the public service by 41,000 people over five years. The Coalition has said it would 'guarantee the growing funding of Medicare', committing $9.4b in funding, including upping the number of bulk billed psychology sessions from 10 to 20. Shadow treasurer Angus Taylor said the Budget costings demonstrated the Coalition's commitment to good economic management. 'This is a $14 billion improvement here, the biggest improvement you've seen since the current costing conventions went into place,' Mr Taylor said. 'We need to be focused on making sure we've got a stronger Budget position than Labor's, which we do, that we are not racking up unnecessary government debt. And most importantly, we're growing the economy, encouraging investment, getting growth and investment by backing small business. That's what we're doing in this economic plan.' The Coalition costings follow Labor's economic numbers released Monday that tallied $35b in new measures since Christmas. Those commitments would be offset by $6.4b in savings by slashing the use of consultants by the public service. The savings offset to commitments that had not been budgeted before would meant the deficit would be a forecast $41.9 billion next financial year, down from $42.2 billion predicted in PEFO. By contrast, the Coalition has a big savings plans from reducing the size of the public service, cutting 41,000 jobs out of an estimated 110,000 Canberra-based bureaucrats via 'natural attrition' or a hiring freeze. The Coalition forecasts it would save $17.2b over the next four years. 'We have worked very closely with Parliamentary Budget Office on this. Without threatening essential services, national security, frontline services, we can reduce the size of the public service by 41,000 over a period to five years, simply through natural attrition,' shadow minister for finance Jane Hume said. The Coalition also revealed it had set aside $400m for its nuclear energy ambitions. It has also budgeted an additional $3.5b from taxing e-cigarettes. Treasurer Jim Chalmers described it as a money making exercise at the expense of health outcomes. 'We want to get the kids off the vapes, the Coaltion wants to tax kids on vapes,' Mr Chalmers said.
Sky News AU
01-05-2025
- Business
- Sky News AU
Federal Election 2025: Shadow treasurer Angus Taylor and shadow finance minister Jane Hume release official election costings
Shadow treasurer Angus Taylor and shadow finance minister Jane Hume are announcing the Coalition's official costings ahead of the election. The Coalition has promised to reduce gross debt by more than $40 billion and slash the Albanese government's budget deficit by at least $10 billion across the next four years. The costings outline a suite of savings measures aimed at reversing what the Coalition claims is Labor's 'decade of deficits' and spiralling national debt. Mr Taylor said the budgeting reflected the Coalition's 'economic responsibility' in contrast with the Albanese government's spending 'splurge'. 'Labor has delivered the longest per-capita recession on record and the biggest collapse in living standards in the developed world,' he said. 'That's not bad luck, that's bad management.' According to the Coalition, the savings plan would restore fiscal discipline and help safeguard Australia's AAA credit rating. It comes after ratings agency S&P Global expressed concern about the prized rating being under threat unless both major parties took action to curb long-term spending. Since the last election, Labor has overseen $425 billion in new spending and 'thrown away' almost $400 billion in additional revenue, according to the Coalition. 'After raking in almost $400 billion in extra revenue, Labor chose to splurge instead of save, leaving Australians more exposed to the next economic shock,' Mr Taylor said in a statement. The Coalition will need to offset its own spending promises which total $34 billion since late last year. Mr Taylor has already promised to scrap the $20 billion Rewiring the Nation plan and $10 billion Housing Australia Future Fund. He would also cut nearly $14 billion in green hydrogen production tax credits and cancel $200 billion in federal support for Victoria's Suburban Rail Loop. 'We can't afford more of Labor's reckless spending,' Ms Hume said. 'The Coalition will restore discipline, reduce debt and deliver cost of living relief that doesn't fuel inflation.' Labor's own updated budget costings, released on Tuesday, forecast $6.4 billion in savings over the forward estimates and $760 million in additional visa revenue. Treasurer Jim Chalmers promised to use the $7.2 billion in overall savings to improve the budget by $1 billion over the forward estimates. However, Mr Taylor dismissed those measures and accused Mr Chalmers of 'losing control' of his colleagues' spending habits. 'You have to have rules to manage your budget — people understand that, it's just common sense,' he told Sky News earlier this week. 'Jim Chalmers threw out the rule book in his first budget and that's why he's losing control. He's got no control over his colleagues — if they want to spend, they spend.'
Sky News AU
01-05-2025
- Business
- Sky News AU
Federal Election 2025: Prime Minister Anthony Albanese doesn't rule out raising taxes amid decade of deficits and soaring debt
Prime Minister Anthony Albanese has refused to rule out raising taxes if re-elected, as he also declined to commit to achieve another budget surplus. Although the Albanese government recently legislated meagre tax cuts taking effect in 2026, Mr Albanese was unable to rule out increasing taxes after the election. He was pressed repeatedly by Sky News on whether voters could expect new or increased taxes under a re-elected Labor government. 'Well, what we've got… is our policies out there for all to see,' Mr Albanese said on Thursday. 'What we've got out there is lower taxes, lower interest rates and at this election there is a real choice: lower income taxes under Labor or higher income taxes under the Liberals.' Mr Albanese ruled out changes to negative gearing, while the government has been rumoured to be eyeing potential changes to taxes on trusts in a bid to increase tax revenue. 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 decade. When asked directly whether he had "given up on ever delivering another surplus," Mr Albanese avoided making any firm commitment. 'The last election, I didn't promise to deliver a surplus and we delivered two,' he said, referring to the tow surpluses delivered during his term. 'This year's deficit is $27 billion, but that's almost half of what was anticipated.' Despite the improvement, Treasury forecasts show deficits continuing into the foreseeable future—including $180 billion in deficits over five years. The government's net debt has been expected to rise by $300 billion over the next three years, making interest payments one of the largest federal expenses. Meanwhile, Mr Albanese defended his government's fiscal record, pointing to budget savings and avoided interest payments. 'We have cut the budget bottom line. We've made it $208 billion better,' he said. 'Australians have saved $60 billion in interest payments as a result of the measures that we've put in place.' But when pressed again on the long-term outlook, he was unable to say if he would ever achieve another surplus. 'What I won't do is speculate. What I will do is say that we've been responsible economic managers and we'll continue to do so,' he said. The Coalition released its election costings on Thursday, promising to improve the Albanese government's budget deficit by $10 billion. The costings outline a suite of savings measures aimed at reversing what the Coalition claims is Labor's 'decade of deficits' and spiralling national debt. Opposition Leader Peter Dutton has committed to eliminating billions of dollars of the Albanese government's spending to improve the budget. These include scrapping the $20 billion Rewiring the Nation fund, $10 billion Housing Australia Future Fund and $14 billion in green hydrogen production tax credits.
