Economist recommends introducing debt levy

Economist recommends introducing debt levy

A leading Australian economist says introducing a debt levy is common sense if the government is serious about getting the budget back in good shape.

But Director of Deloitte Access Economics Chris Richardson has warned the government the levy will need to be coupled with other measures to be effective.

It comes as senior Coalition MP’s emerged from a cabinet meeting yesterday, giving the best indication yet a debt tax will be introduced when the budget is handed down next week.

Federal Finance Minister Matthias Corman says there is a need for an immediate special effort, in order to put Australia in a stronger starting position, as the government repairs the budget.

His comments have been supported by Liberal MP Kelly O’Dwyer this morning on ABC Breakfast.

She says the Coalition governments are willing to make the “adult” decisions that will boost the Australian economy.

6 Detention Centres to go

Meanwhile it is being reported the federal government will announce the closure of 6 detention centres in Tuesday’s budget.

Three detention centres, including the Northern Immigration Centre and the Darwin Airport Lodge in the Northern Territory, as well as the Curtin Centre in Western Australia, are expected to close by the middle of the year.

Meanwhile the Inverbrackie Centre in the Adelaide Hills will close, along with two sites on Christmas Island, by the end of next year.

The closures are expected to save $280 million.

Greens call on the government to keep the MRRT

The Australian Greens are calling on the Federal government to break one of its election promises and retain the Minerals Resources Rent Tax, in order to gain revenue.

The government has already tried to dump the former Labor government’s mining tax, but failed to get legislation through the Senate.

Greens Leader Christine Milne says voters will prefer taxing big corporations, in order to raise revenue, rather than implementing restrictions on pensions and government payments or introducing a debt levy.

About author

Amy Whittaker
Amy Whittaker 1402 posts

Amy joined the NRN team in August 2011, before graduating from a B of Arts (Communication-Journalism)/B of Sports Studies from Charles Sturt University in December 2011.

View all posts by this author →

You might also like

National

Power restored to Sydney Airport but delays continue

Power has been restored at Sydney airport’s domestic terminal, but passengers are still being warned to expect delays.

National 0 Comments

Joe Hockey denies any connection with current ICAC investigation

Treasurer Joe Hockey says he has never received payments from Australian Water Holdings .

National 0 Comments

Abbott puts Labor ahead of Greens

Opposition Leader Tony Abbott has called on the Labor party to preference the Coalition ahead of the Greens, in order to avoid a minority government.

National

Explosion destroys Sydney convenience store

A massive explosion has occurred at a small business in Sydney’s inner west, injuring three people.