Media Release

$10 Billion Hole Punched in Coalition Costings

$10 Billion Hole Punched in Coalition Costings


$10 BILLION HOLE PUNCHED IN COALITION COSTINGS 

Treasurer Chris Bowen

Minister for Finance and Deregulation Penny Wong 

MELBOURNE

29 AUGUST 2013 

Treasury, Department of Finance and Deregulation and Parliamentary Budget Office figures released this morning have exposed a $10 billion hole in the savings claimed by the Coalition yesterday.

Rather than the $31.6 billion save that Shadow Treasurer Joe Hockey spoke about yesterday, these independent figures below show that total saves are $20.8 billion.

This means there is a hole in the Coalition’s costings of $10 billion.

This includes:

  • Claiming an additional $2 billion in savings from not proceeding with the Low Income Superannuation Contribution. The correct saving is $1.7 billion across the forward estimates, not the $3.7 billion Mr Hockey is claiming. 
  • Claiming a saving of $5.2 billion from reducing Australian Public Service staffing by 12,000. The Department of Finance has costed this saving at around $2.8 billion, more than $2 billion less than Mr Hockey is claiming. The Parliamentary Budget Office has also estimated that more than 20,000 public service jobs would have to be cut to deliver the $5.2 billion in saving Mr Hockey is claiming.
  • The vast majority of the $5.1 billion claimed save from discontinuing free permits in the Jobs and Competitiveness Fund does not impact the underlying cash balance.
  • Only $300 million of the $1.5 billion save from discontinuing the Clean Energy Finance Corporation can be claimed as only this portion hits the budget bottom line.

 

 Buget_Blackhole.png

 

Documentation to support these figures is attached.

Treasury Minute

Parliamentary Budget Office Minute 

Department of Finance Minute

Refer to the campaign transcript here: http://www.kevinrudd.org.au/latest6_280813


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