Commission of Audit!!!

I thought it would be interesting to debate what the Abbott Governments “Commission of Audit” would possible deliver to Australia….Here is a short list!!!

Carbon tax – Abbott has vowed to repeal the Carbon Tax and the revenue it would generate yet keep the compensation for taxpayers. He will replace the Carbon Tax with his Direct Action policy which will be funded from consolidated revenue. Abbott will forgo revenue from the “Carbon tax” whilst keeping compensation delivering a net loss to the budget bottom line. He will also fund his Direct Action policy from consolidated revenue eroding the budget bottom line even further. Net result will blow a big hole in the federal budget. Abbott is hoping repealing the Carbon Tax will generate growth and demand adding revenue to the budget to cover the loss of revenue and added spending!!!

Mining tax - Abbott has vowed to repeal the Mining Tax and the revenue it would generate in the hope it will increase investment in the mining sector and generate higher royalties that would go to the States and be recouped through the redistribution of the GST. The Mining Tax was designed to increase revenue based on volume not investment meaning now the investment stage has ended and exports are increasing the mining tax would have generated considerably more revenue over time. Abbott has vowed to remove all funding associated with the mining tax recouping a net gain to federal coffers.

Paid Parental Leave – Abbott’s gold plated PPL will be funded from consolidated revenue and a 1.5% levy (not tax) on Australia’s largest businesses that will be offset by a 1.5% tax cut to all businesses leaving a net loss to the budget bottom line. Abbott claims this will increase productivity and workplace participation which will increase revenue over time but there is no provision for child care which is widely considered a much more influential factor in woman returning to full time work.

Private health care rebate – Abbott has vowed to restore the private health care rebate which will be funded from consolidated revenue. Abbott is hoping this will reduce health costs in the public sector and is considering a co-payment which would supplement the private health care rebate and make private health insurance cheaper for those who can afford it.

Negative gearing – No commitment.

Raising the GST – Ruled out.

Fringe benefit tax – Restored further reducing revenue into the Federal Coffers.

Gonski – Committed to fully fund from consolidated revenue.

NDIS - Committed to fully fund from consolidated revenue.

Superannuation – Cutting the low income support payment. No commitment to tighten co contributions that cost the budget billions of dollars annually

Public Service – Cutting the public service by thousands of jobs which will reduce spending and the delivery of services.


Conclusion – Abbott will remove revenue measures whilst introducing policies that will be funded from consolidated revenue. Abbott will have to find savings from other sources or increase taxes to return the budget to surplus.

philperth2010 wrote on Apr 1^st, 2014 at 11:42pm:

This funding method is a fiction that will provide ZERO revenue for the PPL. It will actually be funded from consolidated revenue.

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Spending five billion dollars to save two billion dollars is a waste of money. The budget would be better off overall if this wealthfare rebate was abolished completely. Some of the money saved should be given to the states to increase their health spending and specifically targeted at reducing waiting lists.

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One of the biggest revenue leaks is the excessively generous concessions to high income earners - the group that needs concessions the least actually receive the largest percentage discount. Someone on a low income pays a higher tax on super than their income, someone on the minimum wage receives a 4% concession, someone on a high income receives around 30%. It's unfair and does not do enough to reduce welfare dependency in old age.

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In other words, there are cuts to come and the Abbott government won't confide in the Australian people and tell them what's coming.

cods wrote on Apr 2^nd, 2014 at 5:59am:


The answer is to pay more and go without.....Cut middle and upper class welfare.....Abolish the fringe benefits tax.....Scrap Abbott's PPL scheme and make child care more affordable instead.....Rework the mining tax and the GST to be more equitable.....Scrap the carbon tax and move to an ETS starting at a low price so our industries are not disadvantaged.....Retain the means test on Private Health Care Insurance.....Scrap tax loopholes in superannuation.....Build rail to improve transport and reduce traffic congestion.....Stop persecuting asylum seekers and process their claims onshore.....Put the GST on food and overseas purchases.....Build a fibre NBN to the premises to high residential and business areas and use wireless in rural and remote areas.....Then I would wait until growth returned to trend and revenue started to increase so Australia could build a sovereign wealth fund to cushion us from our ageing population and another GFC!!!

There are many other things that can be done and abolishing industry assistance to wealthy multinationals is a good start.....Making hard decisions means Governments of all persuasions need to stop buying votes with election hand outs and do what is in the long term interest of all Australians!!!

philperth2010 wrote on Apr 2^nd, 2014 at 7:29am:



I think we all have the answers phil.. if only it was that simple.. to do the hard things govts need backing.. and thats when the opposition turns the screws...and or fringe parties with a smiggin of POWER put the boot in....

its all power you know... they care bugger all about the country and the way its heading...

the greens are all about us doing more for asylum seekers.. god help us do they have any idea how much each asylum seeker is costing us??.. a far bigger amount than our own homeless and job seekers  will ever cost...

Why would you not expect a Commission of Audit or similar? Isn't managing budgets and debt levels a primary responsibility of good government? Most of the criticisms here are of a political nature rather than a practical one.

The PPL is a good idea but unaffordable
The Mining Tax is the worse tax ever invented and now that the days of super profits are gone, it will raise nothing while being a regulatory burden

I don't mind the idea of an MRRT...  each state has a different royalty arrangement.
We should have a national one, one where the mining companies are made to pay a proper amount for the natural resources that they sell.
One Australian royalty arrangement is what is needed, much like a gst where each state can benefit.

Grendel wrote on Apr 2^nd, 2014 at 7:34am:


Paid for out of consolidated revenue because while he is taxing them 1.5% to pay for it he is also reducing their tax by 1.5%, in one hand and out the other. He is saying to the companies "I will raise your tax 1.5% but don't worry companies, I will reduce your tax by 1.5%."

John S wrote on Apr 2^nd, 2014 at 7:24am:



And just another set of easy job handouts for the Party faithful.... that's all these things are in reality - just more scoffing at the trough.... no valuable result ever and just a lovely little earner for a bit of sitting around and 'validating' the already decided 'policies'

Bit o' cash for the next free overseas world trip first class.....