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17 radical savings

IPA REVIEW ARTICLE

| Richard Lyons

If Tony Abbott is to win office at the next federal election in 2013 he has a massive savings task ahead of him. Despite Wayne Swan's insistence that a ‘wafer-thin' surplus will be achieved in the 2013-2014 budget, Australia will still be in a poor financial position.

In our last issue we outlined 75 ‘Radical Ideas' that would help Tony Abbott become one of the best prime ministers in this country's history. Many of these ideas either directly or indirectly will save the government money, and some of them (and their relative savings) are listed below. Abolishing the Australian National Preventative Health Agency (ANPHA), for example, would save the government $83 million per year, and abolishing the Department of Climate Change would save the government $1.5 billion. Other policies will give a much needed ‘once-off' boost to Australia's bottom line. Privatising Australia Post, for example, would generate an instant $5-7 billion.

This is an excellent start if Tony Abbott wants to halt Australia's growing debt, rebuild the surplus and most importantly-reduce the burden of government on taxpayers. Gough Whitlam pushed through a paradigm-shifting increase in the size of government that has never been reversed. If he wins the next election, Tony Abbott will have the chance to do a reverse Whitlam and reduce the size of government dramatically. Here's where he should start.

Total savings:

Recurrent savings:
More than $27 billion per year

Once-off:
Almost $20 billion

2 Abolish the Department of Climate Change - Recurrent savings: $1,551,087,000 per year

3 Abolish the Clean Energy Fund - Once-off: $10 billion

9 Abolish the Australian Competition and Consumer Commission - Recurrent savings: $4.3 million per year

14 Abolish the Australian Communications and Media Authority (ACMA) - Recurrent savings: $3.4 million per year

18 Eliminate family tax benefits - Recurrent savings: $19,904,018,000 per year

19 Abandon the paid parental leave scheme (Tony Abbott's) - Recurrent savings: $3.3 billion per year

21 End all corporate welfare and subsidies by closing the Department of Industry, Innovation, Science, Research and Tertiary Education - Recurrent savings: $1,344,347,000 per year

25 End public funding to political parties - Recurrent savings: $17.6 million per year ($53 Million every three years)

29 Eliminate the National Preventative Health Agency - Recurrent savings: $83,933,000 per year

32 Rule out federal funding for 2018 Commonwealth Games - Once-off savings: At least $100 million

47 Cease funding the Australia Network - Recurrent savings: $22 million per year

48 Privatise Australia Post - Once-off: Between $5 and $7 billion

49 Privatise Medibank - Once-off: $4.5 billion

57 Abolish the First Home Owners' Grant - Recurrent savings: $1 billion per year

62 End all public subsidies to sport and the arts - Recurrent savings: $283,178,000 per year

74 Close the Office for Youth - Recurrent savings: $11,419,000 per year

75 Privatise Snowy-Hydro Scheme - Once-off: $351,000,000 (Commonwealth share only-Victoria and NSW would also save)

 

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