Budgeting smarter not harder proposes a balanced, sustainable, and effective fiscal consolidation package. The report highlights that the Government's approach to fiscal consolidation, throught the 2015 Intergenerational Report (IGR), is illusory. The 2015 IGR fails to provide a long-term sustainable approach to strengthening future budgets.
The report identifies three areas that must be debated as part of a reform package. These include means testing of the age pension, reforming superannuation tax concessions, and examining options for broadening the base of the GST. Such measures would build upon the strengths of Australia's policy smarts, rather than the weaknesses. Subsequently, it could construct the backbone of a wider reform package that would strengthen the safety net, protect the overall progressivity of the tax and transfer system, and set us up to talk about and tackle the real long-term challenges.
The Budgeting smarter, not harder report highlights the key elements of the conversation Australia needs to have about its future.