Our strengths are Iron Ore, Coal & Gas. This is where the money is and this is why foreigners own 83% of these resources. So, this is where we can get the extra revenue to pay down debt.
Costcutting by reducing the numbers in the civil service is peanuts because the savings will be minimal (a 50% reduction as you claim would render the government inoperable) Smaller amounts, like Queensland will simply increase costs in the short term via massive redundancy payments, and then much of this work is oursourced to the private sector at a higher cost. Just look at Qld's outsourcing program at present.
We need an extra $36 billion (CPI adjusted over time) to pay down our debt over the next 25 years assuming that we do not accrue further debt in the interim. So the formula is a balannced budget over the next 25 years and an extra $36 billion revenue.
This can be achieved by:...................................................... extra Revenue (a) abolishing Mineral & Gas GST concession ...............Approx $12 Billion/P/A (b) compel multinationals to pay their fair share of tax by levying an extra 10% turnover tax in lieu of company tax ...................................................................................Approx $12 billion P/A (c) Remove GST concessions from all goods and services. ...................................................................................Approx $2.5 billion P/A (d) withdraw all foreign aid......................................Approx $5.5 billion P/A (e) Armed Forces cutbacks.......................................Approx $1 billion P/A (f) withdraw all tertiary education subsities..............Approx $3.5 billion P/A
Total extra Revenue P/A:.......................................... $36.5 billion
This would essentially leave the civil service as is with the exception of the armed forces and efficiencies would have to be found annually at a rate equal or better than the CPI.
We are in dire straits debtwise and now is the time to sort things out. Should western countries have a strategy to accumulate unserviceable debt like the USA and Japan and then default in an effort to take down China, then , of course, that is another issue but we dont have to emulate the USA economically as well as being their military bum boys. If we supply military assistance to the USA then we should charge them the going rate. It seems ridiculous to have to pay Uncle Sam through the nose fot our hi-tech armaments including fighter planes and Drones and surveilance services and then use this equipment in Uncle Sam's wars. Surely we have accrued enough credits with the USA and the UK so that if our security is throated over the next 25 years that there will be immediate assistance available (Otherwise, what have we being doing since 1914? )
