How can the Australian government save money?

If asked, all of us would have a long list of to do list for our Government. But, does our government have that sort of funds to improve some important sections of our society without putting the ultimate burden on the downtrodden? Treasurer Joe Hockey has hinted otherwise and warned the people to be ready to bear the burden.

Therefore Australian Council of Social Service has offered some remedies to our problem here which could save the government upto $15 billion in two years and can be implemented without making the poor poorer

Let’s look into some of them as per discussed by The Guardian’s Gabrielle Chan

  • As per the regulations, each couple with assets of more than $1m which does not include their home is eligible for the pension. Acoss has proposed to stiffen the eligibility for pension test based on your assets and restrict the tax deduction for seniors to people who qualify for a pension. This would save upto $2200m in 2015-16.
  • Removal of the rebate in tax on additional cover of 30% in private health insurance. With additional medical insurance, people are liable for cover on services like dental, optical, gym fee and chiropractor’s fees. These have mostly been utilised by the top classes which definitely should be liable for tax rebates. This reform would save upto $1000m in 2015-16.
  • People who do not qualify for pension, but still qualify for weekly cash payment as $25 a week for couples or $16 a week for singles is paid off all together into a lump sum amount. Acoss recommends tightening the cash payment bracket to seniors and these who qualify for pension. This would save upto $250m.
  • Reducing subsidy on medicines which are out-of-patent to eliminate any unwanted benefit from rebate. If a cheaper alternative can be utilised then the alternative should be considered than to subsidise the original. This can save upto $1300m.

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