ATA ANALYSIS: Budget Mixed Bag For Taxpayers

 MEDIA RELEASE
ATA ANALYSIS: Budget Mixed Bag For Taxpayers

“The FY2014-15 Commonwealth Budget is a mixed result for taxpayers. Australian Taxpayers’ Alliance commends the Federal Government for a number of savings measures contained in the budget” said Tim Andrews, Executive Director of the Australian Taxpayers’ Alliance.

“The Medicare Co-payment, and other healthcare reforms, are a necessary step forward to ensure the sustainability of our healthcare system. Similarly, cuts to corporate welfare, reducing middle class welfare, and university fee deregulation are all positive steps forward. The cut to our corporate tax rate, one of the highest in the OECD and responsible for driving businesses offshore, while mild, is similarly welcomed. The abolition of 70 agencies, and streamlining of the bureaucracy, is also to be commended.  By reducing the burden of government, and releasing the shackles of red and green tape, these changes will begin to unleash the economic potential of Australia” continued Andrews

However there are serious problems with this budget.

“It is disappointing to see that the government is predicting more debt and deficits throughout the forward estimates, and the 2014/15 budget deficit is still a massive $30 billion” said John Humphreys, Deputy Director of the Australian Taxpayers’ Alliance.

“The budget should be in balance immediately, though it would be understandable if they waited until 2015/16 to achieve balance. Pushing surpluses off into the distant future and past the next election is the same trick used by Labor and future generations deserve better than being burdened with never-ending debt.

“The government is planning to increase revenue from 23% of GDP up to 25% of GDP over the next 4 years – a staggering increase of over  $100 billion. Government policy decisions are estimated to increase revenue by $8.1 billion over the forward estimates; a direct contradiction of their election promise.  The Liberal Party are trying to tax their way into surplus” concluded Humphreys.

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“In particular, the so-called ‘deficit levy’ – increasing the top marginal tax rate to 49%, is utterly unacceptable – no matter how temporary it may be. Furthermore, as exclusive economic modelling previously released by the Australian Taxpayers’ Alliance has demonstrated, it will spectacularly fail to reach revenue estimates, and will be a repeat of the mining tax debacle which ended up costing more than it raised” said Tim Andrews

“Unless this budget is followed with significantly further cuts to overspending, and the ditching of unnecessary and unaffordable programs like the gold-plated paid parental leave scheme, we are continuing to burden future generations with totally unacceptable debt.

“It is a shame that Joe Hockey’s policy advisers never listened to his speechwriters, otherwise we might have had a much stronger budget”

Media Contact:






























Tim Andrews John Humphreys
Executive   Director Deputy Director
Australian   Taxpayers’ Alliance Australian Taxpayers’ Alliance
(m)0434   064 934 (m) 0404 044 561
(e) tandrews@taxpayers.org.au (e) john.humphreys99@gmail.com

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