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Commission of Audit report: key points Commission of Audit report: key points
(about 1 hour later)
PrivatisationPrivatisation
The commission recommends the privatisation of tenThe commission recommends the privatisation of ten
major entities, including Australia Post, the Australian Mint, Snowy Hydro andmajor entities, including Australia Post, the Australian Mint, Snowy Hydro and
the Australian Submarine Corporation. It also proposes that a raft of agenciesthe Australian Submarine Corporation. It also proposes that a raft of agencies
be abolished, merged and reworked.be abolished, merged and reworked.
Who it will hitWho it will hit
It depends on the basis on which the entities areIt depends on the basis on which the entities are
privatised, but in concept, consumers who access services from government, suchprivatised, but in concept, consumers who access services from government, such
as postal services, will in future be getting their service from a privateas postal services, will in future be getting their service from a private
provider.provider.
Federal-state relationsFederal-state relations
The commission recommends that the tier of governmentThe commission recommends that the tier of government
closest to the people accessing the service delivers and manages the service.closest to the people accessing the service delivers and manages the service.
In practice, this would see the states and not the Commonwealth become theIn practice, this would see the states and not the Commonwealth become the
major player in public service delivery. It proposes a quasi state income taxmajor player in public service delivery. It proposes a quasi state income tax
to fund the delivery of services, replacing the block grants Canberra currentlyto fund the delivery of services, replacing the block grants Canberra currently
gives the states to run health and education.gives the states to run health and education.
Who it will hitWho it will hit
Predominantly, the states, politically. This changePredominantly, the states, politically. This change
would make state governments more politically and practically responsible forwould make state governments more politically and practically responsible for
services they aren't currently responsible for. The proposal will concernservices they aren't currently responsible for. The proposal will concern
advocates who prefer that services be delivered according to national templatesadvocates who prefer that services be delivered according to national templates
and uniform standards.and uniform standards.
PensionPension
Aged pensions should be moreAged pensions should be more
tightly means-tested, applying to recipients in 2027-28.tightly means-tested, applying to recipients in 2027-28.
Means-testing including theMeans-testing including the
family home in some cases. Value of the family home considered in the test iffamily home in some cases. Value of the family home considered in the test if
it has a value over $750,000 for a couple and $500,000 for singles in today’sit has a value over $750,000 for a couple and $500,000 for singles in today’s
dollars.dollars.
The eligibility age should beThe eligibility age should be
linked to 77% of life expectancy at age 65 from 2033. This would see thelinked to 77% of life expectancy at age 65 from 2033. This would see the
eligibility of the pension rise to 70 in 2053.eligibility of the pension rise to 70 in 2053.
New indexation of 28% of averageNew indexation of 28% of average
weekly age rather than male average to ensure it rises more slowly.weekly age rather than male average to ensure it rises more slowly.
Who it willWho it will
hithit
PeoplePeople
under 54 years who will be coming of age if the changes are introduced in 2027.under 54 years who will be coming of age if the changes are introduced in 2027.
Aged and superannuationAged and superannuation
TighterTighter
testing on the Commonwealth Seniors Health Card by adding deemed income fromtesting on the Commonwealth Seniors Health Card by adding deemed income from
tax-free superannuation to income test.tax-free superannuation to income test.
ExtendingExtending
the preservation age (currently 55 years going to 60) to 62 by 2027.the preservation age (currently 55 years going to 60) to 62 by 2027.
Then tyingThen tying
the superannuation preservation age (at which you can access) to five yearsthe superannuation preservation age (at which you can access) to five years
below the aged pension.below the aged pension.
Who it willWho it will
hithit
People 49People 49
and under seeking to access superannuation by 2027.and under seeking to access superannuation by 2027.
Pensions and NDISPensions and NDIS
Income testIncome test
for Carers Allowance, limit Carers Payment to those whose work capacity isfor Carers Allowance, limit Carers Payment to those whose work capacity is
affected by carers responsibilities and limit one carer supplement payment peraffected by carers responsibilities and limit one carer supplement payment per
carer per year.carer per year.
TightenTighten
disability assessment and participation criteria for disability supportdisability assessment and participation criteria for disability support
pension, particularly those under 35 with some work capacity.pension, particularly those under 35 with some work capacity.
ImposeImpose
sustainability on NDIS by slowing down the phase in, even though it willsustainability on NDIS by slowing down the phase in, even though it will
require re-negotiation with the states.require re-negotiation with the states.
Amend NDISAmend NDIS
governance by creating a prescribed agency with chief executive officer.governance by creating a prescribed agency with chief executive officer.
ImposeImpose
contracting arrangements in disability services to force competition in NDIS.contracting arrangements in disability services to force competition in NDIS.
Who it will hitWho it will hit
AllAll
disabled people, carersdisabled people, carers
Paid Parental Leave and ChildcarePaid Parental Leave and Childcare
PPL shouldPPL should
be capped at average weekly earnings.be capped at average weekly earnings.
CompanyCompany
surcharge of 1.5% on biggest companies should be maintained.surcharge of 1.5% on biggest companies should be maintained.
CostCost
savings should be put towards extended childcare, including “in-home” caresavings should be put towards extended childcare, including “in-home” care
(nannies) not currently subsidised.(nannies) not currently subsidised.
SplitSplit
assistance for childcare should be streamlined into a single system andassistance for childcare should be streamlined into a single system and
means-tested.means-tested.
Who it will hitWho it will hit
All womenAll women
above average weekly earnings will potentially lose Abbott’s higher PPLabove average weekly earnings will potentially lose Abbott’s higher PPL
payments.payments.
ChildcareChildcare
payments will potentially decrease for all families.payments will potentially decrease for all families.
FamiliesFamilies
who can afford nannies will be part-reimbursed.who can afford nannies will be part-reimbursed.
Family Tax BenefitsFamily Tax Benefits
Family TaxFamily Tax
Benefit Part B will be abolished and only sole parent families will receive aBenefit Part B will be abolished and only sole parent families will receive a
supplement.supplement.
Who it will hitWho it will hit
FamiliesFamilies
where one parent stays at home to look after children.where one parent stays at home to look after children.
MedicareMedicare
Co-paymentsCo-payments
of $15 for all Medicare funded services, with safety net payment of $7.50 forof $15 for all Medicare funded services, with safety net payment of $7.50 for
more than 15 visits a year and $5 for concession card holders.more than 15 visits a year and $5 for concession card holders.
HigherHigher
income earners should take out private health insurance for basic services toincome earners should take out private health insurance for basic services to
replace Medicare.replace Medicare.
EncourageEncourage
states to introduce a co-payment for less urgent emergency department visits.states to introduce a co-payment for less urgent emergency department visits.
IncreaseIncrease
the general extended Medicare safety net threshold from $2000 to $4000.the general extended Medicare safety net threshold from $2000 to $4000.
Audit theAudit the
Medicare benefits schedule to replace expensive items with cheaperMedicare benefits schedule to replace expensive items with cheaper
alternatives.alternatives.
DeregulateDeregulate
private health insurance, including allowing health funds to vary premiums toprivate health insurance, including allowing health funds to vary premiums to
account for “lifestyle” factors like smoking.account for “lifestyle” factors like smoking.
Who it will hitWho it will hit
EveryoneEveryone
accessing health services.accessing health services.
Pharmaceutical Benefits SchemePharmaceutical Benefits Scheme
Co-paymentsCo-payments
for all medicines.for all medicines.
A newA new
independent authority to oversee all listings.independent authority to oversee all listings.
OpenOpen
pharmacies to competition.pharmacies to competition.
Who it will hitWho it will hit
EveryoneEveryone
who buys medication.who buys medication.
School and Higher EducationSchool and Higher Education
Transfer ofTransfer of
all policy and funding responsibility for schools to states.all policy and funding responsibility for schools to states.
TheThe
commission questions the funding increase under the Gonski model.commission questions the funding increase under the Gonski model.
AllAll
commonwealth funding should be delivered in three non-transferable buckets,commonwealth funding should be delivered in three non-transferable buckets,
government schools, private schools and Catholic systemic schools.government schools, private schools and Catholic systemic schools.
Annual perAnnual per
student funding from 2018 – indexed by weighted average of Consumer Price Indexstudent funding from 2018 – indexed by weighted average of Consumer Price Index
and Wage Price Index.and Wage Price Index.
RequireRequire
states to publish how they allocate school funds, more national andstates to publish how they allocate school funds, more national and
international testing, publish student outcomes consistently.international testing, publish student outcomes consistently.
University students should pay 55% of the cost of an average bachelor degree, compared with the 40% they pay currently.
Who it will hitWho it will hit
StudentsStudents
Rural Disaster ReliefRural Disaster Relief
Abolish theAbolish the
Farm Finance Concessional Loans Scheme as it encourages farmers to take on moreFarm Finance Concessional Loans Scheme as it encourages farmers to take on more
debt.debt.
Abolish theAbolish the
Disaster Recovery Allowance, which provides short term income support toDisaster Recovery Allowance, which provides short term income support to
employees, small business and farmers who experience loss of income.employees, small business and farmers who experience loss of income.
Abolish theAbolish the
Natural Disaster Relief and Recovery Arrangements.Natural Disaster Relief and Recovery Arrangements.
Make grantsMake grants
based on each disaster paid at between 25-33% of estimated reconstructionbased on each disaster paid at between 25-33% of estimated reconstruction
costs.costs.
Who it will hitWho it will hit
SmallerSmaller
farmers accessing concessional loans.farmers accessing concessional loans.
AllAll
residents affected by natural disaster including floods, cyclones, bushfires.residents affected by natural disaster including floods, cyclones, bushfires.