The Coalition has unveiled more than $31 billion in savings over four years to offset the cost of its huge tax cut and spending promises. National Economics Editor Jessica Irvine looks at the major cuts.
SCRAP BUSINESS COMPENSATION FOR CARBON TAX (save $7.5 billion)
Because a Coalition government would scrap the carbon tax
(missing out on $9.6 billion in revenue), there would be no need to compensate for its ill effects. Households will get to keep their tax cuts and pension increases. But a Coalition government would scrap all compensation for business and other spending programs associated with the tax, saving $7.5 billion.
AXE SUPERANNUATION BENEFITS FUNDED FROM MINING TAX (save $5.3 billion)
Back in the good old days of the mining boom, Labor thought it was going to reap tens of billions of dollars from its mining tax. So it decided to put some if it into superannuation accounts. With the mining tax now raising much less than expected,
Joe Hockey would also scrap $3.7 billion worth of top ups for the super accounts of low income earners, worth about $500 a year for workers on less than $35,000. He would also delay a ramp up in the Superannuation Guarantee for all workers which would have cost the budget $1.6 billion (because super is taxed at a lower rate).
AXE 12,000 PUBLIC SERVANT JOBS (save $5.2 billion)
Canberra property prices are poised to plunge if a Coalition government is elected. It would scrap 12,000 public servant jobs - not by firing people, but by not replacing them when they retire or leave their jobs. This represents a near 10 per cent haircut to the federal government bureaucracy which currently employs about 170,000 people.
SCRAP BUSINESS TAX BREAKS (save $4.7 billion)
In addition to super benefits,
the Coalition would also axe business tax breaks that were to be funded by mining tax revenue. Business will miss out on an instant asset write-off provision, a phasedown of interest withholding tax, a tax loss carry back scheme and accelerated depreciation for motor vehicles.ABOLISH SCHOOLKIDS BONUS (save $4.6 billion)
A million low income families will miss out on seeing Labor's schoolkids bonus twice every year in January and June. The cash bonus was worth $820 a year for every high school child and $410 for every primary school child and was unveiled in last year's budget. The Coalition says this is no longer affordable given the budget deterioration.
REDUCE HUMANITARIAN REFUGEE INTAKE (save $1.3 billion)
The Gillard government increased Australia's annual intake of humanitarian refugees from 13,750 places to 20,000.
Tony Abbott initially said he supported the increase. But in its search for savings, the Coalition has pledged to reduce it back to 13,750 places a year, booking a saving of $1.3 billion across the four year budget horizon.
SAVINGS FROM PAID PARENTAL LEAVE BUSINESS LEVY (save $1.1 billion)
The cost of the Coalition's more generous paid parental leave scheme will be more than offset in its first two years.
The total cost of the scheme over two years is $9.8 billion.
But the 1.5 per cent levy ( ... Great Big New Tax, passed on to consumers) on big business will reap $4.4 billion, replacing existing state and federal funded schemes will save $4.9 billion and $1.6 billion will be clawed back from mothers because their higher incomes under the scheme will mean they pay more tax and will qualify for fewer benefits.
AXE A WELFARE SUPPLEMENT FUNDED BY MINING TAX (save $1.1 billion)
A twice yearly supplementary allowance paid to dole recipients of $105 a year will no longer be paid by a Coalition government. This supplement was to have been funded by the mining tax revenue.
WIND BACK ASSISTANCE TO CAR INDUSTRY (save $500 million)
In contrast to Labor which is offering ever more assistance to the struggling car industry, an Abbott government would slash car industry grains by half a billion dollars.
AXE CARBON CAPTURE AND STORAGE GRANTS (save $300 million)
A Coalition government would scrap Labor's Carbon Capture and Storage Flagships program and redirect money to pay for its own promises on the environment, which include a multi billion dollar
"Direct Action" plan and a $300 million Green Army.
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