ANALYSIS: Treasurer Jim Chalmers has repeatedly argued the budget is responsible by saving 82 per cent of surprise revenue windfalls, but it omits a $13.2 billion spending measure.
Treasurer Jim Chalmers has repeatedly argued the budget is responsible by “banking 82 per cent” of the $102 billion tax windfall over four years.
It’s similar to former treasurer Josh Frydenberg’s final March pre-election budget which banked about 75 per cent of revenue upgrades and includedTo explain, the Labor treasurer’s accounting method is based on the government attributing its cost of the 15 per cent aged care pay rise to the Fair Work Commission’s decision and not government policy.
The budget reconciliation treats the pay rise as a “variation”, not a “policy decision” of government. Former prime minister John Howard and treasurer Peter Costello did recycle the mining boom revenue windfalls into family payments and consistent personal tax cuts. Chalmers has a point that they spent too much.But Chalmers’ accounting treats the Howard and Morrison governments’ tax cuts as “spending”.
The government has to deliver on saving the revenue windfalls that are forecast to flow from the strong labour market and soaring fossil fuel prices.
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