The Times Australia
The Times World News

.

Albanese insists tax position 'hasn't changed', as the government targets defence delays

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

Anthony Albanese on Sunday insisted the government’s intention to deliver the Stage 3 tax cuts has not changed, while he reinforced the expectation of deep spending cuts in this month’s budget to attack “waste”.

Meanwhile the government on Monday will point to at least 28 major defence projects that are running a total of more than 97 years late, as it highlights pressures it faces on the budget. It says project management must be improved.

After a week of speculation that the Stage 3 cuts could be recalibrated, and then suggestions on Sunday there would be no change, Albanese said repeatedly at a news conference in Perth, “Our position hasn’t changed”.

He denied any conflict with the Treasurer, Jim Chalmers, who has been pushing for modification of the tax cuts, which are legislated to start mid-2024. In the election campaign Labor committed to keeping them. The tax cuts favour higher income earners, and Labor strongly criticised them when in opposition.

Albanese said the government was going through the budget “line by line, making sure that we get rid of the waste.

"Labor will always present responsible budgets,” he said.

Defence is one of the areas Chalmers regularly names when talking about the spending pressures on the budget. The others are aged care, health, the NDIS and interest payments on the debt.

Read more: Grattan on Friday: Jim Chalmers plays the tease as he pushes to change Stage 3 tax cuts[1]

Some 18 projects are running over budget, and there are at least $6.5 billion of variations from approved estimates. A large share of this is due to exchange rates and price indexation, the government says, but “they still have a real impact on the defence budget”.

The Coalition’s March budget estimated defence spending as a proportion of GDP would increase from 2% in 2021-22 to 2.2% over the decade, reaching more than $80 billion annually by 2032. The government says this doesn’t include future requirements not funded by the Coalition, including AUKUS and an increase in the force size.

Projects running behind schedule include: Hunter Class Frigates, Battlefield Airlifters, Offshore Patrol Vessels, Evolved Cape Class Patrol Boats, P-8A Poseidon aircraft, The Battlefield Command System, and a series of Defence Satellite Communications projects.

To strengthen the “Defence Projects of Concern” process the government says it will

  • Establish an independent projects and portfolio management office within Defence

  • Require monthly reports on Projects of Concern and Projects of Interest to the minister for defence industry and the defence minister

  • Establish formal processes and “early warning” criteria for placing projects on the “Projects of Concern” and “Projects of Interest” lists.

  • Foster a culture in Defence of raising attention to emerging problems and encouraging and enabling early response

  • Provide troubled projects with extra resources and skills

  • Convene regular ministerial summits to discuss remediation plans.

Blaming the former government for blowouts in the time and cost of projects, Defence Minister Richard Marles said: “We face the most challenging circumstances since the Second World War, compounded by the fact that the economy is facing serious pressures.

"Reaching record spending within Defence as a per cent of GDP means we need to be more responsible about the way in which we manage.”

Read more https://theconversation.com/albanese-insists-tax-position-hasnt-changed-as-the-government-targets-defence-delays-192155

Times Magazine

Choosing the Right Legal Aid Lawyer in Sutherland Shire: Key Considerations

Legal aid services play an essential role in ensuring access to justice for all. For people in the Sutherland Shire who may not have the financial means to pay for private legal assistance, legal aid ensures that everyone has access to representa...

Watercolor vs. Oil vs. Digital: Which Medium Fits Your Pet's Personality?

When it comes to immortalizing your pet’s unique personality in art, choosing the right medium is essential. Each artistic medium, whether watercolor, oil, or digital, has distinct qualities that can bring out the spirit of your furry friend in dif...

DIY Is In: How Aussie Parents Are Redefining Birthday Parties

When planning his daughter’s birthday, Rich opted for a DIY approach, inspired by her love for drawing maps and giving clues. Their weekend tradition of hiding treats at home sparked the idea, and with a pirate ship playground already chosen as t...

When Touchscreens Turn Temperamental: What to Do Before You Panic

When your touchscreen starts acting up, ignoring taps, registering phantom touches, or freezing entirely, it can feel like your entire setup is falling apart. Before you rush to replace the device, it’s worth taking a deep breath and exploring what c...

Why Social Media Marketing Matters for Businesses in Australia

Today social media is a big part of daily life. All over Australia people use Facebook, Instagram, TikTok , LinkedIn and Twitter to stay connected, share updates and find new ideas. For businesses this means a great chance to reach new customers and...

Building an AI-First Culture in Your Company

AI isn't just something to think about anymore - it's becoming part of how we live and work, whether we like it or not. At the office, it definitely helps us move faster. But here's the thing: just using tools like ChatGPT or plugging AI into your wo...

The Times Features

Benefits of Tree Pruning for a Thriving Australian Garden

Tree pruning is an essential aspect of garden maintenance that often doesn't get the attention it deserves. It's a practice that involves the selective removal of certain parts...

What is psychosocial therapy? And why is the government thinking about adding it to Medicare for kids?

The government is considering new, bulk-billed health checks for three-year-olds, to pick up developmental concerns and refer kids that might need additional support. The de...

Detect Hidden Water Leaks Fast: Don’t Ignore Hot Water System Leaks

Detecting water leaks early is crucial for preventing extensive damage to your home. Among the various parts of a home’s plumbing system, hot water systems are particularly suscept...

Why do hamstring injuries happen so often and how can they be prevented?

In a recent clash against the Melbourne Storm, the Brisbane Broncos endured a nightmare rarely seen in professional sport — three players tore their hamstrings[1] in a single g...

What Is the Australian Government First Home Buyers Scheme About?

For many Australians, buying a first home can feel like a daunting task—especially with rising property prices, tight lending rules, and the challenge of saving for a deposit. ...

How artificial intelligence is reshaping the Australian business loan journey

The 2025 backdrop: money is moving differently If you run a small or medium-sized business in Australia, 2025 feels noticeably different. After two years of stubbornly high bo...