Not that it will change anything for the election but right now Labor is looking more fiscally in tune with Australia’s emerging challenges than Abbott’s big promising, big spending Liberals. The Government’s budget cuts are directly to spending plans and new spending on the NDIS and Gonski reforms are both productivity directed policies that come from redistribution and appear substantially funded.
On the other hand, Tony’s parental leave scheme is profit and productivity destroying even if it does not draw on government revenues. And Joe Hockey mooted a new list of measures to “stabilise” the budget are not enough by half to pay for Coalition promises.
Debt from the NBN is negligible given it borrows off balance sheet. The Clean Energy Finance Corporation does borrow on balance sheet so that’s a real saving. The RMBS sale is not saving exactly given it’s a profitable investment but it will reduce debt which could be redeployed elsewhere. Medibank has an EBIT above $400 million so could get the government another $5 billion or so. Not sure what else there is to sell. Maybe Australia Post?
