Coalition flags return to structural surplus with spending speed limit
Make us a preferred source
Make us a preferred source on Google
The news: Shadow treasurer Angus Taylor has promised that if the Coalition wins the next election it will aim to deliver structural surpluses and re-introduce speed limits on government spending and taxing.
The numbers: Speaking at the National Press Club today, Taylor said the opposition had gone “further than most” in pushing back against $58.7 billion on new government spending. He also railed against the $450 million spent on the Voice referendum, grants to the union movement, 36,000 more public servants and $45 billion in off-budget spending as among expenses, saying these expenses were an “unnecessary waste”.
The context: Taylor criticised Labor for having "abandoned the rules" that support good budget making, amid a broader attack on the Albanese government's economic management. He said the Coalition would bring back a Peter Costello-introduced cap on tax-to-GDP and constrain spending to less than GDP growth. He has also committed to delivering structural surpluses over the medium-term and reducing net debt.
Taylor further said in his speech that the Coalition would back initiatives that they think will make Australia more "prosperous and productive". The establishment of a financial services regulatory grid, the proposed one-stop-shop for investors, streamlined FIRB approvals and the development of a regulatory regime for digital assets are among those they would support.
Much of his speech was focused on immediate cost of living concerns for households and small businesses in light of the 2024 budget. Inflation has continued to be a major talking point for the opposition.
He hinted at further tax reform, but did not provide details instead pointing out that Australia has some of the highest company and personal income tax rates.
What they said: "Labor has committed to an extra $315 billion of spending since the last election – or $30,000 per household,” Taylor said.
“Government spending as a percentage of GDP is forecast to be at its highest level since 1986-87, outside the pandemic.
"A Coalition government is putting productivity and per-person GDP growth at the centre of our economic strategy – because productivity is what allows higher wages without higher inflation."
The source: Angus Taylor's National Press Club Address
