BUTLER ORDERS NDIS REVAMP; NET DEBT LEAP

Butler flags sweeping reforms to rein in NDIS budget

Health and NDIS Minister Mark Butler has announced sweeping changes to the National Disability Insurance Scheme, in a bid to rein in galloping costs of the $52 billion program. Mr Butler outlined reforms that would restrain annual NDIS costs to $55 billion by 2030, targeting $15 billion in yearly projected savings. He said the NDIS had become a target for shonks and fraudsters, while too often, participants were not getting quality supports. Following the May Budget, legislation would be introduced to tighten NDIS eligibility and bring in standardised evidence-based assessments to determine access to the scheme. Participant budgets for social and community participation would be re-set, while the government has also flagged tougher action on preventing fraud within the NDIS. Mr Butler said the legislation would seek to improve the quality of plan managers and support co-ordinators, as well as expanding categories of mandatory provider registration.

National taxation revenue up 4.7 per cent

Australia’s three tiers of government raised $839 billion in taxation revenue in 2024-25, up 4.7 per cent or by $37.4 billion on the previous year, according to official figures. The Australian Bureau of Statistics (ABS) said the Federal Government reaped the largest tax take, up by four per cent at $675 billion, with the states and territories collecting $140.6 billion, and local government, $24.5 billion. Queensland’s taxation haul rose the highest, at 11.1 per cent over the year, and Tasmania’s the lowest, at 3.7 per cent. On a per capita basis, however, Queensland’s taxation revenue rose by 8.3 per cent, with Victoria recording the lowest increase, at 3.7 per cent. Relative to the economy’s size, the nation’s total taxation reached 30.2 per cent of gross domestic product (GDP), having crept up from 27.7 per cent in 2019-20. But the annual growth rate has slowed substantially since the total national tax take leapt by 15 per cent in 2021-22.

Total national public sector net debt nears $1 trillion

Meanwhile, total net debt of Federal, State and Local Government across Australia rose towards $1 trillion in 2024-25, or more than 34 per cent of GDP. Annual Government finance statistics released by the ABS show that total net debt rose by more than $100 billion to $955 billion, with net debt-to-GDP approaching the levels of Covid-19 pandemic. Across the three tiers, the total government net operating balance dipped into the red, with a deficit of $8.2 billion. While total public sector revenue (which includes that of public corporations) rose by five per cent, total public sector expenses rose by 7.1 per cent in 2024-25.

PM stands firm against calls to tax gas exports

Prime Minister Anthony Albanese has strongly defended the current arrangements for taxation of energy resources, heading off calls for a tax on gas exports. In a podcast interview, Mr Albanese said the Petroleum Resource Rent Tax (PRRT) regime reflected the “tens of billions of dollars” to establish extraction infrastructure. In addition, the PM said that in 2024-25, the gas sector paid $22 billion in taxes. He said that regardless of the debate around gas taxation, the Federal Government would stick to its word and honour contracts, including with trading partners such as Malaysia, South Korea and Singapore, all of whom sent liquid fuels to Australia.

New legislative framework to strengthen cash distribution

Treasurer Jim Chalmers has moved to shore up the cash distribution system, releasing draft legislation to ensure the cash system continued to operate in the public interest. Dr Chalmers cited Reserve Bank of Australia data showing that around 15 per cent of in-person payments were made in cash and that around half of all Australians used cash each week. He said a cash distribution framework would establish crisis preparedness and resolution powers to protect continuity of critical services, as well as requirements for designated providers to negotiate with customers in good faith. Dr Chalmers said that cash remained critical, especially for regional communities and during emergencies and outages.