The Business Council of Australia has released its submission to the federal government’s 2013–14 Budget.
The submission argues that the government’s execution of its fiscal strategy is not working and needs a major rethink. It calls on the government to set out a sensible and credible pathway back to surplus, along with a refreshed fiscal strategy, including by:
- undertaking an independent review of the size, scope and efficiency of government
- committing to a refreshed set of fiscal rules that place a hard cap on the size of government, build capacity to recharge fiscal readiness (to allow us to deal with the next major economic shock) and begin to provision for intergenerational pressures
- maintaining a focus on measures to improve productive capacity including through infrastructure investment, deregulation and measures to lift skills and encourage innovation
- developing a blueprint for long-term comprehensive tax reform.
The submission draws on a report prepared for the Business Council of Australia by Deloitte Access Economics titled ‘Risks around Australia’s Fiscal Position’ and a report by ACIL Tasman titled ‘Reforming Federal Finances’.