Labor’s double the surplus no more reliable than Coalition’s

Via ABC:

Labor will release its policy costings today, which are expected to outline $154 billion in savings to the budget over a decade, due to its contentious tax changes.

The Opposition’s plans to curb negative gearing, capital gains tax concessions and dividend imputation have been a central battle in the federal election campaign.

Labor will set out how those changes and a crackdown on multinational tax avoidance would allow it to fund spending promises on education and health care, while also bringing the budget back into surplus.

The ABC understands Labor’s costings will show it intends to match the Coalition’s surplus this coming financial year, but promise a quicker reduction of debt.

“We will show bigger budget surpluses over the forward estimates and the medium-term, achieving a surplus of 1 per cent of GDP by 2022-23, four years earlier than the current Government trajectory,” Shadow Treasurer Chris Bowen said.

The costings will be released today so when the assumptions are exposed we shall see. Given the PBO will very likely have the same commodity price and growth outlook at Treasury, and the hostile senate confronting any Labor Government, I think it unlikely its surplus pledges will be any more reliable than those of the Coalition.

Comments

  1. Less reliable because they still think that they are going to raise billions from the franking and NG changes.

    • You are missing the point. Every dollar they miss on these targets will be a dollar that has been taken out of housing or cash-cow stocks and moved to companies that are not currently paying dividends but are investing and innovating for the future. Thus, it will help to rebalance the Australian economy and make it more dynamic.

  2. Wonder if their costings will show how much their election bribe to the Chinese and Indian communities to bring their old sick parents in will cost.