I have not read the Audit report yet.
But, I think there is wastage in government driven in the past by interests demanded successfully by special interest groups. So, unfortunately for people working for governments when some special interest groups fall out of 'fashion', diverting government resources from those areas will translate to 'cuts'. Anyway, it seems Labor was already reducing the number of public servants when the Coalition won government and discovered that it was happening in earnest.
The recommendation to pull back the scope of Abbott's visionary PPL is a good idea. Abbott's ego will have to make a 'contribution' if everyone else is subject to a levy.
Levy is a good idea to reduce the need for a larger cut on welfare programs. Those who have steady earnings are ahead of those who have to rely on welfare.
Revisiting the conditions for getting welfare payments is always a good idea. Access to entitlements should not be the first port of call but a safety net after an approach based on self-reliance is exhausted.
It is understandable that the Opposition is there to present a negative perspective on every government initiative. Government will fall or succeed on its own record of performance. In the first year of government, the Coalition cannot afford to take the 'easy' and 'political' way of doing things, a la Labor style with debt. Government can only borrow to 'spend', not produce directly like a business. It's serviceability is credible because of its power of taxation. Australia does not have a reserve currency like the US and cannot afford to try and copy failed financial systems of most of the developed nations.
Australia's interest on its debt for 2013 financial year was mentioned as $12.5 billion. The government is already in deficits for the foreseeable future. It can stretch the last leg with more debt because it is not as bad as other countries based on debt as a proportion of GDP. But to go down that path is joining nations with bad financial records - not a good league. Unlike a nation, there is no way a bank will lend to anyone who spends more than he can earn without additional collaterals and guarantees.
All property investors have to be assessed by the banks as able to service their debts. Nations are more credible and reliable debtors assuming they have taxation power and are prepared to use it! With the proposed levy, Australia's AAA sovereign financial rating will be secure!
