Wednesday, 23 September 2026

A couple of simple things to get rid of the deficit

 Our budget deficit is around 1% of GDP. (The US is over 5%!!)

Here are three policy action that could reduce that substantially but of course are politically difficult.

  1. Get rid of the ridiculous subsidy to WA via the GST
  2. impose a means test on all government programs
  3. Take the NDIS back to its roots. Only those with physical disabilities get help.
Scott Morrison is responsible for the GST rot to WA. It is nothing short of a disgrace the richest State gets more money. Saul Eslake says this was the worst policy mistake of the 21st century. I agree. WA voters would not like it however

In some ways Albo has imitated John Howard. Howard brought in middle class welfare bigtime when the resources boom was taking off. Able has simply copied him without the boom. Our family should not have been subsidised in getting solar panels nor a battery.Taking away benefits always hurts the incumbent government.

We simply do not have the money to help everyone getting help via the NDIS. Only allowing those with physical disabilities would significantly reduce it cists, Again taking away benefits would entail political pain.

These are but three options but you can see the political problems involved. I am doubtful any party can do it and a revenue boost is our only hope.

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