Swan Warns More Budget Cuts Ahead
Just before the set Budget discussions in Parliament on May 8, Treasurer Wayne Swan has announced that some $150 billion has been lost from Commonwealth revenues over a period of five years.
He also said about $10 billion has been misapproproated from federal coffers because of an unstable world economy.
Treasurer Swan added that the government has been receiving lower tax revenue and will need to make room for savings in the Budget to further protect Australia’s funds from an uncertain and vulnerable economy.
Swan said the government is determined to deliver a surplus when Budget talks begin on May 8. He also said that they will make sure low and middle-income families or individual workers will be looked after, when budget cuts are proposed.
A key crossbencher, Andew Wilkie, said they would be in full support of the government’s two appropriation bills stating how money should be spent over the next two financial years.
Wilkie stated that with this, the government is entitled to have control over the Treasury bench, giving public servants their benefits and payments due.
The government recently announced that high-earning individuals would be significantly affected with slashes on tax breaks. Top executives who claim tax-free allowance for accommodations are also affected.
The cuts in tax breaks aim to save the government some $1 billion yearly. The government also said that this is its way of protecting lower- and middle-income families.
The strategy appears to be welcomed by different sectors of the society. The Australian Council of Social Services has said that the tax breaks have been exploited for many years and it’s about time the government fixes the loophole.