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Updated net budget impact of election policies: 1 August 2010.

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Chris Bowen  

Minister for Financial Services, Superannuation & Corporate Law, Minister for Human  Services, Member for McMahon    

Updated net budget impact of election policies

Chris Bowen posted Sunday, 1 August 2010

Federal Labor today released the updated net budget impact of the Gillard Labor

Government’s election commitments.

The Prime Minister’s announcements today regarding Fairer Simpler Super and the return of

Malabar Headland to the citizens of NSW do not have any net impact on the budget.

The Prime Minister has committed that by election day:

· All our commitments will have been fully offset over the forward estimates - meaning

not a single cent is added to the overall budget bottom line.

· All our policies will be submitted for costing under the Charter of Budget Honesty.

Labor's election commitments $m

Labor's new policies -1.277

Savings to offset Labor's new



Impact on the Budget bottom 357


In contrast, Mr Abbott has blown another black hole in his budget by not properly reading the

Budget Papers before making an announcement on aged care.

Not content with cutting real services to older Australians such as improving access to GP and

primary health care, Mr Abbott is also claiming savings from the Long Stay Older Patients

(LSOP) program that do not exist.

Despite the Budget clearly stating that “this measure also provides for the continuation of the

existing LSOP initiative for a further two years to 2011-12”, (see Budget Paper No. 2 2010-11,

p.224) Mr Abbott has invented an additional $75 million of savings in 2012-13 and 2013-14

to help prop up his bottom line.

Mr Abbott is a risk to the budget. He has announced more than $20 billion of spending

commitments on the run, without a clear economic plan for Australia.

Of these, only $93.1 million, or less than one half of one per cent have been submitted for

independent costing under the Charter of Budget Honesty.

The Secretaries of the Departments of Finance and Treasury advised both parties that all

announced policies need to be submitted by 13 August to ensure they are costed before the

election. This means Mr Abbott now only has 10 business days left to submit all his spending

and saving measures for independent costing.

The clock is ticking.

What exactly does Mr Abbott have to hide?

If he stands by his figures, he should submit all his announced policies for costing by the

independent umpire first thing Monday morning. The Liberal-National Coalition introduced

the Charter in government and should fully comply with it now.

Labor will continue to update the net budget impact of its election commitments to ensure

that voters are fully informed when they vote on 21 August.

Tags: Bowen, costings, election