The Unresolved Spending Problem

In his September opening speech, treasurer Scott Morrison pointed out "we do not have a revenue problem, we have a spending problem."

A mid-year update in two weeks time will show the spending problem is still unresolved. Whilst taxes like the GST have increased, there has been little or no reduction to expenditure. This will lead us to a mounting deficit predicted around $40.3 billion. This is $5 billion more than foreshadowed in the budget and significantly larger than last year's deficit of $37.9 billion.

Deloitte Access Economic Partner, Chris Richardson, points out the decade long policy trend of choosing spending over tax cuts by "a ratio of four to one." Without reversing that trend, he warns that "we're drifting towards bigger government without consciously making that decision." 

It's time to consciously demand better from our policy makers who promised us two months ago they would get expenditure under control. "Lower, fairer and simpler taxes" will only be a pipe dream if the Turnbull government does not take serious measures to end the waste.

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