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$10 billion hole punched in Coalition costings

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Campaign Media Release

Treasurer Chris Bowen

Minister for Finance and Deregulation Penny Wong

$10 billion hole punched in Coalition costings

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.

Documentation to support these figures is attached.