A strong Budget position is important as it gives governments capacity to deliver the services and public investments that maximise community value today and into the future.
This includes providing a sustainable social safety net for the most disadvantaged in society, and supporting productivity and income growth through efficient capacity-building public investments in human capital and infrastructure.
The Business Council’s submission to the Federal Government’s 2017-18 Budget sets out a responsible five-pronged strategy to promote stronger growth, better services and increased value from government spending, with the ultimate goal of achieving higher community living standards.
Australian households will bear the costs of inaction through blunt cuts in services, higher taxes and a weaker, less resilient economy.
The deficit wasn’t created by lower revenues, and new taxes are not the solution. Nor are higher tax rates, as they would do nothing to improve services or increase value for money. We cannot afford to think that as our spending grows, we should simply tax more.
The window to contain spending growth is rapidly closing. The Business Council believes that Australia has until 2025 to put the budget on a sustainable footing before we reach tipping point.
The Business Council Secretariat contact for budget issues is Adam Boyton, Chief Economist.