Malcolm Turnbull echoes Tony Abbott on 'moral' imperative of budget repair
|
Version 0 of 1. Malcolm Turnbull has argued the case for budget repair is not just a fiscal imperative but a moral one, echoing Tony Abbott’s argument from a year ago. As the government plans its May budget, the prime minister told a business summit that governments could not raise taxes while ignoring spending because future generations would pay. Turnbull said intergenerational reports had repeatedly warned spending must be more efficient to counter the costs of an ageing population. By 2035, there will only be 3.2 working age Australians for every person aged 65 and over, less than half the level there was in 1990, he said. “Budget repair therefore is not just a fiscal imperative – it is a moral one,” Turnbull said. “Is it right to say to our children and grandchildren that we expect them to pick up the tab for our spending?” In February last year, Abbott described the same imperative in a Quadrant article five months after he lost the leadership. “So ensuring that government spends no more than it really must is not just an economic imperative; it’s also a moral one,” Abbott wrote. “It’s the respect that government owes to taxpayers for whom every dollar is hard-earned.” On Thursday, Turnbull said a strong budget was important to allow the country to weather external shocks from a position of strength. “The Howard government left us a fully paid up, first-rate insurance policy – large surpluses and money in the bank,” Turnbull said. “But Labor cashed in the policy, spent the inheritance, putting enormous strain on the AAA rating. That’s Labor’s fiscal legacy.” Turnbull cited as evidence his government’s attempts to phase out poorly targeted family tax benefits, payments that were introduced under John Howard and Peter Costello in last year of the Howard government. “We must make sure our spending is fair and fit for purpose,” Turnbull said. “Ending compensation for a tax that no longer exists is fair. “Phasing out poorly targeted family tax benefit supplements and reinvesting money into childcare and fortnightly family payments is fair. They were not popular calls to take to an election but they are the right ones.” He attacked Labor for assuming it could keep real spending growth to 2% when it was growing at around 3.5% per year. “I won’t make promises I can’t keep and I won’t commit to spending money that simply isn’t there,” Turnbull said. Turnbull said the Coalition was focused on the need to innovate, making businesses more productive and competitive, including by lowering the company tax rate “so we don’t fall off the back of the pack”. “It is not populist politics – it is the right call for the times,” he said. And Turnbull repeated his call, first made when he announced he would challenge Abbott for the leadership, to respect the intelligence of Australians. “Playing on the fears and vulnerabilities of some Australians is reprehensible,” Turnbull said. “It is not an economic policy. And it inches us closer to losing our AAA rating. We must respect the intelligence of the Australian people.” |