The Times Australia
The Times Australia

.
Men's Weekly

.

Election battle turns to spending, with BCA calling for cap and Labor hitting Dutton’s planned cuts

  • Written by Michelle Grattan, Professorial Fellow, University of Canberra



As the political debate turns to government spending, the questions loom: is it too high, and will Peter Dutton be able to get away with keeping his proposed cuts mostly under wraps?

On Tuesday the Business Council of Australia will launch its election ambit claims. In the following two days, about 30 CEOs from big companies will descend on Parliament house to argue their case to Treasurer Jim Chalmers, his opposition counterpart Angus Taylor, and some crossbenchers.

The BCA’s “election blueprint” calls for real expenditure growth to be capped at 2% a year, and the tax-to-GDP ratio to be capped at 23.9%.

The December mid-year budget update forecasts expenditure growth of 5.7% in 2024-25, more than 2 percentage points above the rate of inflation, forecast to be 2.75%. For later years it forecasts real expenditure growth in line with or below inflation.

The budget update projected a tax-to-GDP ratio of 23.4% in 2024-25, rising to 23.5 in 2025-26 and staying there for the rest of the forward estimates. The Coalition had a 23.9% cap which was abolished by Chalmers.

On spending the BCA says: “One way to fight inflation is to limit money pushed into our economy. Commonwealth Government spending is expected to increase to 26.5 per cent of GDP in 2024-25 and 27.2 per cent of GDP in 2025-26.

"Outside the pandemic period, this is the highest level of spending as a share of GDP since 1986-87. Having even more dollars chasing a limited supply of goods and services risks prolonging inflation and interest rates staying higher for longer.

"While this is not to suggest that we should not be taking government action to support our most vulnerable, we must have an overall whole-of-government aim to get spending under control.”

Among other “asks” on the BCA wish list are an investment allowance to encourage innovation, various measures to promote deregulation, action to remove bottlenecks for approval processes, and abolition of (or increase in) the R&D expenditure threshold.

Meanwhile Labor is seizing on Peter Dutton’s plans for major cuts to the public service, a familiar target for Coalition oppositions, and other cuts in government “waste”..

Dutton said on Sunday Labor had put 36,000 additional places into the public service. A Coalition government would not allow the public service “to balloon,” although it would protect “frontline” positions, he told the ABC.

Most of the Coalition’s spending cuts, however, would not be announced until after it was in government.

Dutton said he would not have a commission of audit, as the Abbott government did.

“Many of us have sat around the expenditure review committee. We know what we’re doing,” he said. “We’ve worked […] with many of the departmental heads that are there now, and I have no doubt that we’ll be able to find where Labor has put fat into the system that is not helping do anything but drive inflation.”

The Minister for the Public Service, Katy Gallagher, said Dutton was “so arrogant […] that he’s decided he doesn’t have to tell anyone about where [his cuts are] coming from until after the election.

"He has said he will cut 36,000 Canberra-based public servants.[…] We know that will have impacts right around the country,” she said on Monday.

“It will have impacts on anyone who wants to use Centrelink, anyone who wants to get their payments sorted, anyone who’s after compensation – for example, veterans. All of that is at risk under Peter Dutton’s plan. And he’s so arrogant and reckless that he’s openly saying he will do this, but he’s not actually going to tell you how he does it until he’s in government.

"He needs to come clean on that today. He needs to come clean on where these cuts are coming from and how he’s going to do them.”

Read more https://theconversation.com/view-from-the-hill-election-battle-turns-to-spending-with-bca-calling-for-cap-and-labor-hitting-duttons-planned-cuts-248537

What parents and youth athletes can do to protect against abuse in sport

From the horrific Larry Nassar abuse scandal[1] in United States gymnastics to the “environment of fear[2]” ...

Times Magazine

Effective Commercial Pest Control Solutions for a Safer Workplace

Keeping a workplace clean, safe, and free from pests is essential for maintaining productivity, protecting employee health, and upholding a company's reputation. Pests pose health risks, can cause structural damage, and can lead to serious legal an...

The Science Behind Reverse Osmosis and Why It Matters

What is reverse osmosis? Reverse osmosis (RO) is a water purification process that removes contaminants by forcing water through a semi-permeable membrane. This membrane allows only water molecules to pass through while blocking impurities such as...

Foodbank Queensland celebrates local hero for National Volunteer Week

Stephen Carey is a bit bananas.   He splits his time between his insurance broker business, caring for his young family, and volunteering for Foodbank Queensland one day a week. He’s even run the Bridge to Brisbane in a banana suit to raise mon...

Senior of the Year Nominations Open

The Allan Labor Government is encouraging all Victorians to recognise the valuable contributions of older members of our community by nominating them for the 2025 Victorian Senior of the Year Awards.  Minister for Ageing Ingrid Stitt today annou...

CNC Machining Meets Stage Design - Black Swan State Theatre Company & Tommotek

When artistry meets precision engineering, incredible things happen. That’s exactly what unfolded when Tommotek worked alongside the Black Swan State Theatre Company on several of their innovative stage productions. With tight deadlines and intrica...

Uniden Baby Video Monitor Review

Uniden has released another award-winning product as part of their ‘Baby Watch’ series. The BW4501 Baby Monitor is an easy to use camera for keeping eyes and ears on your little one. The camera is easy to set up and can be mounted to the wall or a...

The Times Features

Running Across Australia: What Really Holds the Body Together?

How William Goodge’s 3,800km run reveals the connection between movement, mindset, and mental resilience As a business owner, I’ve come to realise that the biggest wins rarely com...

Telehealth is Transforming Healthcare Services in Australia

It has traditionally not been easy to access timely healthcare in Australia, particularly for people who live in remote areas. Many of them spend hours on the road just to see a...

Launchd Acquires Huume, Strengthening Creative Firepower Across Talent-Led Marketing

Launchd, a leader in talent, technology and brand partnerships, has announced its acquisition of influencer talent management agency Huume from IZEA. The move comes as the medi...

Vietnam's "Gold Coast" Emerges as Extraordinary Investment Frontier and Australian Inspired Way of Life

$2 Billion super-city in Vung Tau set to replicate Australia's Gold Coast success story A culturally metamorphic development aptly named "Gold Coast" is set to reshape Vietna...

Choosing the Wrong Agent Is the #1 Regret Among Aussie Property Sellers

Selling your home is often one of the largest financial transactions you’ll make, and for many Australians, it’s also one of the most emotional. A new survey of Australian home se...

Travel Insurance for Families: What Does it Cover and Why it’s Essential

Planning a family trip is exciting, but unexpected mishaps can turn your dream vacation into a stressful ordeal. That’s where travel insurance comes in—it’s your safety net when ...