MEDIA RELEASE: TONY ABBOTT & JOE HOCKEY’S $21 BILLION BUDGET BLACK
The Government’s complaints about the Opposition are in tatters today after Labor revealed Tony Abbott and Joe Hockey have blown a $21 billion black hole in the budget bottom line.
The amount is comprised of $18.4 billion in foregone or axed revenue and $2.8 billion in savings over the forward estimates not opposed by Labor.
Shadow Treasurer Chris Bowen said Tony Abbott and Joe Hockey’s attitude was to blame for the budget chaos the Government had created.
“Joe Hockey’s ‘my way or the highway’ attitude has resulted in a $21 billion budget black hole,” Mr Bowen said.
“Labor has always taken responsible approach to the budget, but every step of the way the Government has made excuses.
“The arrogance of the Government is breathtaking and Tony Abbott and Joe Hockey are failing in their management of the nation’s finances.”
Shadow Finance Minister Tony Burke said the Government’s ‘if we can’t have it all, we’ll have nothing’ approach to the budget was stopping savings measures that could be passed without opposition from Labor.
“Labor understands budgets involve tough decisions and that’s why we’ve adopted a responsible approach to the budget,” Mr Burke said.
“The Government’s all or nothing approach means it is choosing to make the budget situation worse and Joe Hockey’s only response is to make threats to hurt low and middle income earners more.”
“In less than a year, the Government made debt unlimited, doubled the budget deficit and has now blown an additional $21 billion hole in the nation’s finances. That’s before you take into account its $20 billion Paid Parental Leave scheme and $2.5 billion ineffective Direct Action mess.
“Labor has always been constructive on responsible savings. The Abbott Government is simply offering more broken promises and attacks on lower and middle income earners.”
Foregone or Axed Revenue Measures:
Mining Tax Revenue: $3.3 billion
Carbon Pricing Revenue: $13.7 billion
Business Tax Integrity Measures: $1.1 billion
- tax breaks for multinational companies;
- loopholes in offshore banking regimes.
Tax on High Income Superannuation Earnings: $313 million
Responsible Savings Measures Not Opposed By Labor:
Reducing income limit for Family Tax Benefit Part B from $150,000 to $100,000 : $1.2 billion
Including untaxed superannuation in assessment for the Commonwealth Seniors Health Card : $20.9 million
Better targeting the large family payment supplement : $377.7 million
Ending indexation of the Clean Energy Supplement : $479.1 million
Limiting the amount of time students can spend overseas while still receiving student payments : $153.1 million
Removing relocation scholarship assistance for students relocating with and between major cities : $290.1 million
Disability Support Pension – portability : $12.3 million
Removing the Family Tax Benefit Part A per child add-on : $211.2 million
TOTAL AMOUNT: $21.2 BILLION ACROSS THE FORWARD ESTIMATES