The recent Audit Commission report has generated much debate regarding its recommendations to bring the budget back to surplus in the next 10 years.
In the main, it was a collection of opinion pieces that fell short of a proper budget review. It mainly looked at expenditure and under government direction paid scant regard to taxation. In my view, its fundamental flaw was its assumption that taxation collections for the Commonwealth will not lift above 24% of GDP. To achieve a 1% surplus, then obviously expenditure must be held to 23% of GDP. That assumption, in the face of a discernable ageing of the population, drove the recommendations for expenditure restraint.