AUSTRALIANS need to lower their demands for generous government payments if the nation is to bring its finances under control, the Parliamentary Budget Office has warned, as it forecasts a surge in new programs over the decade ahead. Ringing the alarm on the budget challenge, the independent agency predicts that the cost of major programs — such as childcare, schools and aged care — will keep growing faster than the economy unless parliament votes to curb the outlays. The report sheds new light on the cost of the Senate impasse on budget reform by predicting that the commonwealth would save $116.6 billion over the coming decade if the government could legislate all its changes. Critics of Tony Abbott’s paid parental leave policy could seize on one new estimate: that his scheme would cost $7.5bn a year in 2025. However, the findings also counter Labor’s rhetoric about “cruel” cuts by showing that key programs will keep growing even if the Senate approves the government plan to slow the rate of increase.
Posted on: Sat, 23 Aug 2014 04:39:01 +0000
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