For several years, the Business Council of Australia has been recommending a comprehensive audit of the scope, size and efficiency of government as an essential first step towards putting the Australian Budget on a more sustainable footing.
We welcome the government’s decision to undertake the Commission of Audit, and the opportunity to make a submission outlining what we view as priority issues for the commissioners, and ultimately the government, to address.
The submission outlines a number of priority principles for consideration, including:
- restraining growth in expenditure
- governments must prioritise
- maintaining a sustainable safety net
- lifting productive capacity
- making the federation more efficient
- recovering costs where possible
- regulating carefully
- delivering services efficiently
- maintaining intergenerational equity
- minimising administrative costs.
The Business Council of Australia submission to the National Commission of Audit has been developed with the assistance of background analysis and research undertaken by Stephen Anthony of Macroeconomics.
The audit must be seen as one pillar in the overall strategy to grow the economy and repair the fiscal position. The two other pillars are tax reform, which must improve the stability and efficiency of the tax system, and the broader policy environment, which must drive growth.