Angus Taylor Contradicts PM’s Surplus Assertion, Pointing to Rise in Taxation and Spending
Chalmers contradicted Taylor’s assertion by stating that the surplus was not achieved through tax increases, but rather through spending reductions.
On the day the Albanese government celebrated its second surplus budget, Shadow Treasurer Angus Taylor criticized it as the “biggest spending, biggest taxing government in Australian history.”
“Taxation has increased by $104 billion since Labor came to power, and the majority of that has been spent,” Taylor remarked in response to the budget figures released by the government on Sept. 30th.
Today, the Albanese Labor government claims to have delivered “the biggest back-to-back surpluses on record,” with an underlying cash surplus of $15.8 billion (0.6 percent of GDP) for the country, following the $22.1 billion (0.9 percent of GDP) surplus in 2022-23.
Taylor criticized the government for attempting to deceive the public by portraying a positive household budget situation.
He emphasized the necessity of reducing spending, yet the government saw a 16 percent increase in spending over two years.
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“The majority of the additional tax revenue, which largely comes from strong iron ore receipts or increased personal income tax, is being spent by the Australian public, resulting in budgetary difficulties,” he added.
Chalmers firmly asserted that the surplus was attained not through increased taxation, but rather by reducing expenditures.
“In the previous fiscal year, spending was significantly lower than expected in the budget, with revenue also decreasing. Spending decreased nearly twice as much as revenue did. Therefore, this larger surplus is not due to higher taxes,” he explained.
He reiterated that the government’s bold actions on aged care and the National Disability Insurance Scheme (NDIS) have aided the surplus.
“Funds allocated for NDIS and aged care will continue to rise, but we have demonstrated a commitment and capability to ensure sustainable growth while simultaneously lowering interest costs,” he added.
Finance Minister Katy Gallagher echoed these sentiments, stating that through reshuffling expenditures, finding savings, and reducing debt, ministers have prevented $80 billion in interest expenses in the medium term.
“This financial approach has opened up opportunities for crucial investments in areas such as Medicare, housing, and alleviating the cost of living. The surplus is not just about balancing the books, but also about ensuring funds are available for services that benefit Australians, all while addressing the debt left by the prior administration,” she concluded.
