‘Going nuts’: Big-spending budget is slammed - as ‘table of truth’ exposes hidden tax rise reality

Jim Chalmers is splashing the cash but a “table of truth” in the budget papers could reveal the troubling reality behind the big numbers.

Jim Chalmers is “going nuts” on new spending in the budget, according to the Coalition, by handing out “billions to billionaires” that will lock in a decade of deficits.

Liberal frontbencher Angus Taylor has unleashed on the budget’s claim of back-to-back surpluses given Australia will be back in the red shortly.

“You look at what’s going on beneath the surface. You’ve got spending growing. They’re going nuts,’’ he told news.com.au.

“It’s reckless. I mean, they’re handing out billions to billionaires.”

Treasurer Jim Chalmers announced a back-to-back surplus of $9.3 billion on budget night – a feat not delivered by any Treasurer since Peter Costello.

Treasurer Jim Chalmers delivers his budget speech at Parliament House on May 14, 2024. (Photo by Tracey Nearmy/Getty Images)

The so-called table of truth is a graph that shows the net effect of spending and taxing decisions in the budget.

Last year, Australia recorded a final budget surplus of $A22.1 billion ($14.2 billion) for the year to June 2023, five times earlier than original estimates.

But the budget will then slip sharply into a deficit of $28.3bn and further into the red at $42.8bn the following year.

Those budget deficits are higher than the projected deficits of $18.8bn and $35.1bn for those two years in the mid-year economic and fiscal outlook, released late last year.

“Essentially what the budget is doing is putting us deep into a deficit in two years time – $43 billion,’’ Mr Taylor said.

The 2024-25 federal budget papers were published last night. Picture: NCA NewsWire / Martin Ollman

‘Table of truth’

Pointing to what economist Chris Richardson calls “the table of truth” in the budget, Mr Taylor said it was all smoke and mirrors.

The so-called table of truth in Budget Paper No 1 is a graph that shows the net effect of spending and taxing decisions in the budget.

Last year, this table of truth showed that Jim Chalmers was detailing $42 billion in new spending over four years but only $22 billion in new revenue measures to pay for it.

This year, the trend continues. It shows new receipts of $8 billion in the budget.

But it also records new payments of $32 billion.

“And then the way we crawl out is through rising personal income taxes over time, being paid by every Australian,’’ Mr Taylor said.

“And that’s bracket creep, right? It’s insidious.

“They take it all back. They are taking it all back. That’s what they do.”

Shadow Treasurer Angus Taylor. Picture: NCA NewsWire / Martin Ollman

$300 rebate for every Australian under fire

Meanwhile, Jacqui Lambie has unloaded on Anthony Albanese’s plan to hand out the same $300 energy rebate to every Australian including billionaires as “a joke”.

The Tasmanian independent said the government appeared to be “chucking money out” ahead of the election.

The handouts will cost $3.5 billion.

Speaking on the ABC, she said the budget plan to hand out $300 to billionaires was “bizarre”.

“Not means tested? Are we back in Covid days? We’re just chucking money, left, right and centre,’’ she said.

“Seriously, you’re too lazy to do some means testing. We don’t need $300. I can assure you. That should have been passed forward.

“I find it really, really bizarre.”

Senator Lambie said she was not impressed.

“This is the best budget they can come up with?,’ she asked.

“Oh my God!”

Originally published as ‘Going nuts’: Big-spending budget is slammed - as ‘table of truth’ exposes hidden tax rise reality