This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/world/2014/may/01/commission-of-audit

The article has changed 4 times. There is an RSS feed of changes available.

Version 2 Version 3
Commission of Audit unveils radical blueprint to shrink government Commission of Audit unveils radical blueprint to shrink government
(4 months later)
Australians would pay more for health and education and receive lower benefits for unemployment, pensions, family, childcare and parental Australians would pay more for health and education and receive lower benefits for unemployment, pensions, family, childcare and parental leave over time under a radical blueprint to shrink the role of government and force all but the "deeply disadvantaged" to look after themselves.
leave over time under a radical blueprint to shrink the role of The sweeping report from the Commission of Audit, which was charged with bringing national spending under control, proposes a plethora of tougher eligibility rules and lower annual increases in pensions and payments and has been considered by the Coalition as it prepares to deliver deep "pain" for long-term economic gain in its first budget, due in two weeks.
government and force all but the "deeply disadvantaged" to look after The highly contentious recommendations include adding the value of the family home to the means test for the aged pension, forcing young single people to move to find a job after one year on the dole and reducing payments to stay-at-home spouses. It also advocates $15 co-payments for visits to the doctor and additional co-payments for buying medicine, a means test for receiving the full childcare rebate and another drastic reduction in Tony Abbott's recently pared-back paid parental leave.
themselves.
The sweeping report from the Commission of Audit, which was charged
with bringing national spending under control, proposes a plethora of
tougher eligibility rules and lower annual increases in pensions and
payments and has been considered by the Coalition as it prepares to
deliver deep "pain" for long-term economic gain in its first budget, due
in two weeks.
The highly contentious recommendations include adding
the value of the family home to the means test for the aged pension,
forcing young single people to move to find a job after one year on the
dole and reducing payments to stay-at-home spouses. It also advocates
$15 co-payments for visits to the doctor and additional co-payments for
buying medicine, a means test for receiving the full childcare rebate
and another drastic reduction in Tony Abbott's recently pared-back paid
parental leave.
And in a recommendation that would spell the end of Australia's system of universal healthcare, it says high-income earners should be forced to insure themselves for basic health services rather than rely on Medicare.And in a recommendation that would spell the end of Australia's system of universal healthcare, it says high-income earners should be forced to insure themselves for basic health services rather than rely on Medicare.
On the national disability insurance On the national disability insurance scheme, the report proposes that it should be rolled out more slowly and that the agreements already signed with the states should be changed to achieve this, with the head of the Commission of Audit, the Business Council of Australia president Tony Shepherd, saying there was "no point signing up for things we cannot afford".
scheme, the report proposes that it should be rolled out more slowly and that The report also proposes handing over all policy and funding responsibility for government and non-government schools to the states with lower federal funding over time than that would have flowed under the former government's Gonski plan, and increasing the proportion of education costs paid for by tertiary students through the Higher Education Loans Program. It also proposes that patients should pay $15 co-payments for visits to the doctor, with concession card holders paying $5, and an extra $5 co-payment for all medicines.
the agreements already signed with the states should be changed to achieve And it advocates a total rethink of how state and federal governments work – allowing states to raise their own revenue to deliver health and education and housing services more autonomously, with federal income tax being reduced by the amount each state proposes to raise. It also advocates a total rethink of the contentious method for distributing to the states revenue raised through the GST, coming down in favour of the big states' arguments that GST should be shared on a per capita basis, with extra grants to small states that would otherwise be left worse off. Shepherd said states needed to be "sovereign in their own domain".
this, with the head of the Commission of Audit, the Business Council of Australia He said the complex and overlapping responsibilities between federal and state governments was "one of the great threats to the country" which "cannot be swept aside". The government has commissioned a separate white paper on the issue.
president Tony Shepherd, saying there was "no point signing up for things The report deliberately phases in its proposals for sweeping cuts. It reduces government spending by just $1.6bn in 2014-15 and $3.4bn in 2015-16; but this jumps to $20.6bn in cuts in 2017-18 – after the next election – and leaving government spending a massive $67bn lower than in would otherwise have been in 2023-24 when the budget would return to a sustainable surplus.
we cannot afford". The proposed cuts fall heavily on the biggest recipients of government payments – unemployed, sick and disabled people and low and middle income families – but the report says the separate taxation review should also consider generous superannuation taxation concessions that cost the government $30bn a year and flow almost entirely to the wealthy.
The report also proposes handing
over all policy and funding responsibility for government and non-government
schools to the states with lower federal funding over time than that would have
flowed under the former government's Gonski plan, and increasing the proportion
of education costs paid for by tertiary students through the Higher Education
Loans Program. It also proposes that patients should pay $15 co-payments for
visits to the doctor, with concession card holders paying $5, and an extra $5
co-payment for all medicines.
And it advocates a total rethink of
how state and federal governments work – allowing states to raise their own
revenue to deliver health and education and housing services more autonomously,
with federal income tax being reduced by the amount each state proposes to
raise. It also advocates a total rethink of the contentious method for
distributing to the states revenue raised through the GST, coming down in
favour of the big states' arguments that GST should be shared on a per capita
basis, with extra grants to small states that would otherwise be left worse
off. Shepherd said states needed to be "sovereign in their own domain".
He said the complex and
overlapping responsibilities between federal and state governments was
"one of the great threats to the country" which "cannot be swept
aside". The government has commissioned a separate white paper on the
issue.
The report deliberately phases in its
proposals for sweeping cuts. It reduces government spending by just $1.6bn in
2014-15 and $3.4bn in 2015-16; but this jumps to $20.6bn in cuts in 2017-18 –
after the next election – and leaving government spending a massive $67bn lower
than in would otherwise have been in 2023-24 when the budget would return to a
sustainable surplus.
The proposed cuts fall heavily on
the biggest recipients of government payments – unemployed, sick and
disabled people and low and middle income families – but the report says the separate
taxation review should also consider generous superannuation taxation
concessions that cost the government $30bn a year and flow almost entirely to
the wealthy.
Shepherd denied the report was advocating a "program of austerity", saying, "We tried to make sure we looked after the deeply disadvantaged ... people who can look after themsleves [should] look after themselves."Shepherd denied the report was advocating a "program of austerity", saying, "We tried to make sure we looked after the deeply disadvantaged ... people who can look after themsleves [should] look after themselves."
The Abbott government, aware of the The Abbott government, aware of the political damage of hitting only the poor, is planning an immediate "temporary" personal tax rise for people earning more than $80,0000, but releasing his report Shepherd made a clear case against such rapid, short-term changes.
political damage of hitting only the poor, is planning an immediate He said the commission had deliberately "avoided any sudden shocks to people" because implementing changes and cuts over time "makes it much easier to bring the community with us" and ran a lower risk of damaging the "still fragile" economy.
"temporary" personal tax rise for people earning more than $80,0000, The finance minister, Mathias Cormann, said it was important for the government to start reducing the deficit straight away and it would be careful not to do anything that damaged economic growth.
but releasing his report Shepherd made a clear case against such rapid, short-term changes. The treasurer, Joe Hockey, said that it was “kind of ridiculous” for the government to be required to keep every election promise when it had inherited a budget which Labor had falsely promised would return to surplus.
He said the commission had deliberately All this talk about broken promises, of course we will endeavour to keep our promises … but please, this idea that everything we said is going to be held against us ... given what has moved on us is kind of ridiculous.”
"avoided any sudden shocks to people" because implementing changes The treasurer, Joe Hockey, has had the report for several weeks and is already in the final stages of his budget planning, but the commission's headline finding – that without drastic action net debt would rise to $440bn by 2023-24 and the budget would never return to surplus – has galvanised the government to take politically unpopular decisions.
and cuts over time "makes it much easier to bring the community with He refused to rule out any measures proposed in the Commission of Audit report, other than the suggestion the government reconsider its pledge to increase defence spending to 2% of GDP. Government sources also ruled out including the family home in the means test for the aged pension.
us" and ran a lower risk of damaging the "still fragile" Tony Abbott this week conceded payments under his "signature" paid parental leave scheme would have to be reduced from $75,000 to $50,000, but the audit commission says they should be cut further to just over $28,000. It says the 1.5% company tax levy – imposed to pay for the scheme – should stay, but the extra money should go to extend childcare to nannies, with a new means test which would still allow early families to get 50% of the current non-means tested childcare benefit.
economy. The report proposes huge cuts to the federal public service including the abolition of seven bodies and the merging of 35 others and tells the government to make further cuts to corporate welfare and research and development grants and to reconsider its target to increase defence spending to 2% of GDP.
The finance minister, Mathias Many of the recommendations align with what is already known about the budget – that it is likely to propose Medicare co-payments and major public service cuts. Other recommendations are likely to be ruled out by the government, with some deferred for possible implementation at a later time.
Cormann, said it was important for the government to start reducing the deficit
straight away and it would be careful not to do anything that damaged economic
growth.
The treasurer, Joe
Hockey, said that it was “kind of ridiculous” for the government to be required
to keep every election promise when it had inherited a budget which Labor had
falsely promised would return to surplus.
All this talk about
broken promises, of course we will endeavour to keep our promises … but please,
this idea that everything we said is going to be held against us ... given what
has moved on us is kind of ridiculous.”
The treasurer, Joe Hockey, has had
the report for several weeks and is already in the final stages of his budget
planning, but the commission's headline finding – that without drastic action
net debt would rise to $440bn by 2023-24 and the budget would never return to
surplus – has galvanised the government to take politically unpopular
decisions.
He refused to rule out
any measures proposed in the Commission of Audit report, other than the
suggestion the government reconsider its pledge to increase defence spending to
2% of GDP. Government sources also ruled out including the family home in the means test for the aged pension.
Tony Abbott this week conceded
payments under his "signature" paid parental leave scheme would have
to be reduced from $75,000 to $50,000, but the audit commission says they
should be cut further to just over $28,000. It says the 1.5% company tax levy –
imposed to pay for the scheme – should stay, but the extra money should go to
extend childcare to nannies, with a new means test which would still allow early families to get 50% of the current non-means tested childcare benefit.
The report proposes huge cuts to the
federal public service including the abolition of seven bodies and the merging of 35 others and tells the government to make further cuts to corporate welfare
and research and development grants and to reconsider its target to increase
defence spending to 2% of GDP.
Many of the recommendations align
with what is already known about the budget – that it is likely to propose
Medicare co-payments and major public service cuts. Other recommendations are likely
to be ruled out by the government, with some deferred for possible
implementation at a later time.
The opposition leader, Bill Shorten, said the report was written "by big business, for big business".The opposition leader, Bill Shorten, said the report was written "by big business, for big business".
This is Tony Abbott's plan to put up your taxes and to cut your This is Tony Abbott's plan to put up your taxes and to cut your services. It is a plan for cuts, not a plan for growth.
services. It is a plan for cuts, not a plan for growth. If he gets his way, Tony Abbott will turn the most basic things in life – education, healthcare, support for older Australians – into a massive everyday struggle for working families.
If he gets his way, Tony Abbott will turn the most basic things in This is a report written exclusively by special powerful interests and it shows. This is a report written by big business for big business that will hurt hard-working families. It shows how out of touch this prime minister is, how twisted Tony Abbott's priorities are for Australia."
life – education, healthcare, support for older Australians – into a
massive everyday struggle for working families.
This is a report
written exclusively by special powerful interests and it shows. This is a
report written by big business for big business that will hurt
hard-working families. It shows how out of touch this prime minister is,
how twisted Tony Abbott's priorities are for Australia."
The Greens said the commission had been "rigged" to produce exactly the "dog-eat-dog outcome" that it had delivered.The Greens said the commission had been "rigged" to produce exactly the "dog-eat-dog outcome" that it had delivered.
The party's leader, Senator Christine Milne, said the report should be "a call to arms that we begin the process of kicking this mob out".The party's leader, Senator Christine Milne, said the report should be "a call to arms that we begin the process of kicking this mob out".