MALCOLM TURNBULL’S $30 BILLION BUDGET HOLE

Joint Media Release with the Shadow Treasurer, Chris Bowen.

The Liberals have a $30 billion Budget hole going into the final week of the election campaign and no way of paying for it.

Neither side of politics will achieve the numbers outlined in the 2016-17 Budget, but only Labor acknowledges this fact.

There are currently $30 billion worth of “zombie” measures factored into the Liberals’ Budget that will never pass Parliament.

Labor recognises this and has completely reversed these out of our Budget bottom-line.

Malcolm Turnbull and Scott Morrison must explain how they will pay for their $30 billion Budget hole.

The inclusion of these measures in the Liberals’ Budget, many since 2014, will continue to hit the Budget bottom-line in each and every year.

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Without these zombie measures, Labor is on track to have higher surpluses than the Government in every year once the Budget is back in balance in 2020-21.

Combined with their $50 billion tax giveaway to big businesses, the Liberals will struggle to keep the Budget in balance over the medium term.

And because of this, the Liberals will deliver more harsh budget cuts to families.

Only Labor is making responsible structural changes to the Budget in order to generate continuous improvements to the Budget bottom-line.

Only Labor has a fair and responsible, fully costed and independently verified plan for the Budget.

In stark contrast, the structural deterioration to the Budget over the medium term caused by the Liberals’ mismanagement is clear.

UNDERLYING CASH BALANCE 2026 – 27

The Liberals-Including Zombies Measures

$6.2 billion

The Liberals-Excluding Zombies Measures

$1.6 billion

Labor

$19.8 billion

As long as the Liberals continue to ignore important structural change they will forever be held hostage to parameter variations.

Only Labor is making sensible decisions to protect and improve the Budget over the medium term.

ZOMBIE MEASURES

  • Cuts to Family Payments.
  • The Divorce Tax.
  • Increasing the age of eligibility for Newstart Allowance and Sickness Allowance.
  • Pensioner Education Supplement — reinstatement.
  • Education Entry Payment — reinstatement.
  • Changes to Medicare Safety Net Arrangements.
  • Increase to the Age Pension qualifying age to 70 years.
  • Changes to the Fair Entitlements Guarantee.
  • Abolishing the Seafarer Tax Offset.
  • Changes to pension portability.
  • Four week waiting period for income support for young people.
  • Changes to the Research Training Scheme - student contributions.
  • Maintaining eligibility thresholds for Australian Government payments for three years.
  • One-Week Ordinary Waiting Period to all Working Age Payments.