The federal coalition plans to scrap Labor’s tax cuts and some of the government’s signature programs to improve the budget bottom line, if it wins the election.
While the opposition will release its full costings on Thursday, some details have already emerged.
These include plans to cut at least two of the Labor government’s off-budget investment funds, including the $10 billion Housing Australia Future Fund set up to build 30,000 new homes, according to reports in News Corp and Nine newspapers.
Labor’s recently legislated tax cuts would also be on the line to make budget savings, according to The Australian.
The coalition’s goal is to add at least $10 billion to the budget – which is walking toward a decade of deficits under Labor – over the four years to 2028/29 while cutting government gross debt by $40 billion over the same period.
Other cuts include scrapping student debt relief worth $16 billion, unwinding Labor’s decision to lower tax concessions for superannuation accounts with balances higher than $3 million, and dumping Labor’s Rewiring the Nation infrastructure fund.
“We will rebuild the nation’s fiscal buffers, reduce debt and begin budget repair because that’s what economic responsibility looks like,” shadow treasurer Angus Taylor will say, according to the reports.
Finance Minister Katy Gallagher said that, given the details so far, the opposition costings looked like a “con job”.
“Housing is going to be cut and income taxes are going to go up,” she told Nine’s Today show on Thursday.
“More lies from Katy,” Mr Taylor responded.
“The important point here is this: by bringing down our debt and bringing down the deficits, we bring down interest rates, inflation.”
According to the Australian Office of Financial Management, which oversees government debt raisings, gross debt currently stands at $925.9 billion.
Labor’s 2024/25 budget forecast gross debt to rise to $1 billion in the next financial year.
The government released its costings earlier this week for Saturday’s election.
Treasurer Jim Chalmers said the cost of Labor’s election promises would be offset by more than $7 billion in savings.
This means the budget deficit would be reduced by $1 billion over the next four years, compared with pre-election forecasts.
Labor’s crackdown on the use of consultants and labour hire in favour of public servants would save $6.4 billion, Dr Chalmers said.
This would offset the price of its election policies, such as tax cuts and more money for health services.
The government also hopes to save $740 million by increasing application charges for student visas to $2000 from July.
Australian Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national newswire and has been delivering accurate, reliable and fast news content to the media industry, government and corporate sector for 85 years. We keep Australia informed.
