More than $20bn will be cut from the budget by the Government by the middle of the financial year.
Key points: The Government is proposing to spend $20.9 billion more than the previous budget and it will be the first time in the history of the Government to cut spending on health, education, and infrastructure over the course of a year.
It is expected to achieve the savings in the coming weeks.
The Opposition is warning that the Government is “in denial” about the scale of the cuts.
Key points:The Government has been spending more on health than the Labor Government, but the opposition says it has been hiding the extent of the savings from the public.
It is expected the Government will achieve the $20-billion savings in coming weeksThe Government is set to announce the next round of budget savings this week, and says it will deliver $8.7 billion of savings over the next four years, but there is growing concern the Government may have to cut a lot more.
It has previously said the Government had already announced $6.7bn of savings for this financial year and another $6bn in savings for next financial year, but today’s announcement will see the total cost of the budget cut from $20,971,955 to $19,939,817.
The announcement comes as Labor is seeking to put forward a series of changes to the budget to reduce the budget deficit.
Labor has said it would make $6 billion in savings over four years in its budget.
Under the plan announced by the Prime Minister and Treasurer Scott Morrison, $6,600 will be saved for every child who gets an early start, $2,600 for every jobless person and $2.1 million will be made available for child care and education.
However, the Opposition has called on the Government not to spend the savings on the health sector.
“The Prime Minister has been telling us we will get $20billion of savings in four years,” Opposition Leader Bill Shorten said.
“Instead he is going to spend more than that on the Liberal Party’s flagship plan to end Australia’s crippling public health deficit.”
“In the first year he will be spending $2 billion on health and $6 in other areas, while in the second year he is spending $4 billion on the Liberals’ failed plans to cut funding for the public sector, cut funding to public hospitals, and fund the massive privatisation of healthcare,” he said.
Opposition leader Bill Shortens warns $20B in cuts in next four weeksThe Opposition says it is still unclear how the Government plans to fund the $6-billion cuts, but is warning of “major cuts to infrastructure and services” as a result.
As the Government prepares to unveil its next round, the opposition has said the $18.5 billion in cuts announced last week will include $1.8 billion for infrastructure and $3.2 billion for services, including education.
The Coalition says the cuts will save $20 to $30 billion over four decades, but Labor says the Government has not done enough to deliver the $30-billion plan it has promised.
In his Budget, Treasurer Scott Walker promised $6b of savings to tackle Australia’s public health budget, and said the Coalition’s proposed $6billion in cuts would save $3b a year, or $20b a day.
But Mr Walker said the new plans did not include any spending on education, which the Opposition claims is the $4-billion a year the Government wants to invest in public education.