The independent Parliamentary Budget Office’s report on election commitments has been released today.
The report backs up the costings of Labor’s credible plan to responsibly repair the budget, invest in schools and hospitals, save Medicare and protect middle and working class families.
In reviewing Labor’s election commitments and costings, the PBO has concluded:
“There were no material differences between these budget impacts and those released by Labor prior to the election.” [page 4, PBO’s Post-election report of election commitments, 2016 general election]
During the election campaign, Labor outlined savings measures that would deliver more than $130 billion in budget improvements over the medium term.
The PBO has confirmed the budget impacts of the key elements of Labor’s fiscal plan that will achieve savings that gradually and permanently improve the budget bottom line over time:
“A number of Labor’s election commitments are projected to significantly improve the budget balances beyond the 2016–17 Budget forward estimates period.” [page 6]
Labor’s credible plan for budget repair is in stark contrast the Turnbull Government’s approach.
Malcolm Turnbull and Scott Morrison are irresponsibly giving away $50 billion in a tax cut for big business, all while smashing household budgets and cutting from essential services like schools, hospitals and Medicare.
The Government’s budget is propped up by unfair ‘zombie measures’ which will not pass the parliament, destroying the credibility of its fiscal position.
At the same time, it has tripled the deficit, added $100 billion to net debt and put Australia’s triple-A credit rating at risk.
The Government’s $50 billion tax cut for big business is the most egregious example of its irresponsible approach to fiscal policy. The PBO’s report shows that Labor’s policy to limit the company tax cut to small businesses would:
“…improve the underlying cash and fiscal balances by $4.4 billion over the 2016–17 Budget forward estimates period…rising to a $14.2 billion improvement in the budget balances in 2026–27. [page 6].
The Turnbull Government has a three word slogan but it doesn’t have a serious economic plan.
Its unfair cuts to schools, hospitals and Medicare will hurt families and damage the economy.
This week the Reserve Bank was forced to cut the cash rate to a historic low of 1.5 per cent – a dramatic action that was necessary because this weak and divided government doesn’t have its own credible plan for growth.
The result of the Liberals’ failed economic management is low business investment, stagnant wages, falling living standards and an uncertain jobs market.
Labor calls on the Turnbull Government to remove its zombie measures from the budget and work with Labor on responsible and fair budget repair – such as our reforms to negative gearing and the capital gains tax discount.
