On the day the Albanese government celebrated its second surplus budget, Shadow Treasurer Angus Taylor called it the “biggest spending, biggest taxing government in Australian history.”
“Taxation since Labor came to power for the year just past is up $104 billion and the vast majority of that they have actually spent,” said Taylor in his first reaction to the budget numbers released by the government on Sept. 30th.
Early today, the Albanese Labor government claims to have delivered “the biggest back-to-back surpluses on record,” with an underlying cash surplus of $15.8 billion (0.6 percent of GDP) for the nation. It follows the $22.1 billion (0.9 percent of GDP) surplus in 2022-23.
Angus criticised the government, saying the treasurer is “trying to con the Australian people by saying they’ve got a wonderful situation in terms of their household budgets.”
“He is trying to con all on the trajectory of taxation and spending by this government,” he added.
He added that the need of the hour is to contain spending, yet the government recorded a 16 percent growth in spending in two years.
“The vast majority of the money that they get in extra taxation from strong iron ore revenues or from higher personal income tax, which is about 50 percent of the increase in taxation. This money is being paid for by the Australian people, and that their budgets are in a terrible state,” he added.
In complete contrast to Taylor’s claims, Chalmers insisted that the government has been able to achieve the surplus not by earning more taxes but by spending less.
“Spending in the last financial year was much lower than anticipated at budget, and revenue was lower as well. Spending was down by almost twice as much as revenue was down. So, this bigger surplus is not because we taxed more,” he said.
He reasserted that the government’s bold decisions on reform to aged care and the National Disability Insurance Scheme (NDIS) have contributed to the surplus.
“Spending on NDIS and aged care will continue to grow, but what we’ve been able to show is a willingness and an ability to make sure that both of those grow more sustainably at the same time as we get those interest costs down,” he added.
Finance Minister Katy Gallagher echoed the sentiment and said through a focus on reprioritising spending, finding savings, and reducing debt, ministers have worked diligently to avoid $80 billion in interest costs over the medium term.
“This fiscal strategy has created room for essential investments in areas such as Medicare, housing, and cost-of-living relief. The surplus is not simply about balancing the books but ensuring funds are available for services that benefit Australians, all while tackling the debt left by the previous administration,” she said.
