Abbott to slash $10bn off corporate welfare

The corporate bludgers in Australia are about to get a hair cut…a $10 billion hair cut…as Tony Abbott seeks to shave he corporate welfare budget.

CORPORATE welfare will be slashed in a bid to wean the nation off $10 billion in business aid, as the Abbott government fights off fears it will slap new taxes on ?families without forcing others to shoulder some of the budget ?burden.

Taking a knife to industry assistance, the government will send employers the same message it is sending welfare recipients about the need to curb reliance on benefits.

Joe Hockey told?The Weekend Australian?that his vow to end the ?age of entitlement? meant asking business to give up some of the payments and services Canberra had been giving it for years.

The government approaches Tuesday?s budget in a political fight over a tax hike on petrol and a ?deficit tax? that leaves Tony ?Abbott increasingly exposed to charges of breaching his election promises.

Bill Shorten said the plan to lift fuel excise was not only a breach of faith with voters but also a hit to ?ordinary families.

?We know two things about Tony Abbott?s petrol tax: it?s a broken promise, and it?s going to put more pressure on the cost of living of all Australians who have to fill up their car every week,? the Opposition?Leader said.

Central to the budget will be programs to get Australians back into the workforce, including ?earn or learn? measures for the young and attempts to scale back benefits to those who could be working.

?The fact is when I said there?s going to be an end to the age of entitlement, everyone has to contribute,? the Treasurer said in an interview.

?Business will benefit out of a stronger economy and a leaner public sector that will come out of this budget.?

Mr Hockey said companies that relied on support would feel the impact.

?Those who depend heavily on government support will not necessarily receive the same support into the future,? he said. ?Business has a responsibility to manage itself in the same way that we expect (others to do so), other than those most vulnerable in the community.?

Government sources told?The Weekend Australian?that agencies would be scaled down and fees ?applied to more services for business in a ?cost-recovery? plan to cut expenses.

The savings in the budget amount to hundreds of millions of dollars as part of a longer-term plan to reduce the reliance on corporate welfare.

?Private business will have to stand on its own two feet,? said one senior government source.

Great stuff..I wonder what Selwyn Pellett would have to say about all this.


– The Australian