Budget Reveals Lack Of Vision, Ambition For Australia

Written by:
15 May 2024
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“The federal budget reinforces that the economic focus of the government is solely on redistribution to benefit sectional interests, rather than growth to benefit the entire nation,” said Daniel Wild, Deputy Executive Director of the Institute of Public Affairs.

The release last night of the 2024-25 federal budget locks in higher spending, debt, and taxes for future generations:

  • Over the next five years, the economy is expected to grow by just 2.25 per cent per year on average in real terms.
    • By contrast, the average annual real economic growth during the Hawke government was 3.5 per cent.
  • Interest payments on government debt will be single fastest growing item of spending, increasing by 12 per cent per year, which is faster than the growth in NDIS spending at 8 per cent per year.
    • This means interest payments on government debt will grow 25 per cent faster than the NDIS.

“This is a nightmare budget for the future of Australia, and will condemn Australians to years of declining living standards and an ever-growing debt burden to be paid back by future generations,” said Mr Wild

“It is revealing that the budget is forecasting anaemic economic growth of just 1.75 per cent next financial year, the majority of which will continue to be driven by out-of-control mass migration, rather than productivity.”

“For a government barely two years old, the budget shows it is already out of puff and has no new ideas on how to grow Australia’s future. The Prime Minister and the Treasurer are now simply resorting to failed, 1970s-style tax-and-spend policies and economic redistribution,” said Mr Wild.

The federal budget has also failed to address Australia’s ongoing worker shortage issue, continuing to rely on the lazy option of more migration rather than removing barriers to Australians getting into work.

“This budget does not speak to the concerns or aspirations of mainstream Australians, nor does it even touch the sides of the substantial reform needed to lift the economy, such as reducing the overall tax burden, cutting red tape, and fixing the labour market,” said Mr Wild.

“At a time when one-in-five Australian businesses still cannot find the workers needed to fill job vacancies, the federal budget does nothing to cut red tape and taxes preventing pensioners, veterans, and students from getting into work should they choose.”

“In Australia, should pensioners and veterans choose to work more than two days a week on minimum wage face an effective marginal tax rate as high as 66 per cent, despite announced reductions to income tax rates.”

“It is disappointing the Albanese government has chosen to ignore these so many Australians who want to work, and continues to rely on record, mass migration, which only puts further pressure and stress on our critical infrastructure and services, such as housing and health services,” said Mr Wild.

To download the IPA’s previous research click here.

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