Commission of audit released today could recommend changes to pension assets test and cuts to education

A REPORT out today will highlight changes due in the budget, with education, doctors payments and pensions under review. Here’s what to worry about.

The commission of audit report is expected to recommend major changes when its released t

THE commission of audit could recommend including the family home in the pension assets test, cuts to education and health and a maximum co-payment of $20 to see a bulk-billing doctor.

The 900-page document will carry 86 recommendations offering a range of solutions to cut Federal Government spending and increase efficiencies.

The audit commissioners have proposed the abolition and privatisation of some federal agencies and suggested responsibility for health and education and other services be given to the states and territories, according to a series of leaks published on Thursday.

They've called for a cap on National Disability Insurance Scheme spending and for the rollout timetable to be slowed, News Corp Australia reports.

The Australian National Preventive Health Agency could also be on the chopping block alongside Defence Housing Australia, which manages and owns properties for defence families, Fairfax Media reports.

A $15-$20 co-payment - more than the $6 fee currently being proposed - to see a bulk-billing doctor is also among the recommendations, The West Australian reports.

The report could recommend a payment of $15-$20 to see the doctor.

But the government is expected to rule out changing the pension assets test before 2017, despite the audit commission's expected recommendation that the family home be included.

Its recommendations are not binding on the government, but are likely to go a long way to building the platform for the coalition's first term budget due to be handed down on May 13. Finance Minister Mathias Cormann says the audit will show the spending growth projectory inherited from the previous Labor government is unsustainable.

He also downplayed claims the government would be breaking an election promise if it went ahead with a proposed a debt levy to be paid by workers earning more than $80,000 a year.

The audit would recommend budget reform that would build structural savings over time but there was an urgent need for an immediate effort to begin the repair task, the senator said. “We're not making any excuses,” Senator Cormann said.

“We're not doing any of this out of fun,” he said.

It also could recommend the family home is included in the pension asset test.

Shadow treasurer Chris Bowen said it was “unconscionable” for the government to have sat on the report for so long.

The government commissioned the audit after last year's federal election and the final report was handed to Treasurer Joe Hockey last month.

The report will be published at 2pm (AEST) on Thursday.

Opposition finance spokesman Tony Burke expects the report will pave the way for a “road map of broken promises” by the government. He dismissed talk of a budget emergency, saying the coalition had overseen a doubling of the deficit since it came to office. Mr Burke was particularly concerned about a likely proposal to include the family home in the pension assets test.

This could impact people who have lived in a “modest” home for decades and then find themselves sitting on a valuable asset because of property price increases

Shadow treasurer Chris Bowen said it was “unconscionable” the government has sat on the report.

The chair of the NDIS agency Bruce Bonyhady said its costs were under control.

“The latest figures show the scheme is now well within budget,” he told ABC radio.

“People should have no fear of a cost blow out.” He said introducing a cap on what NDIS participants could receive would result in the same broken system as before.

NSW Premier Mike Baird said his government would be forced to consider any implications on hospital emergency departments if co-payments on bulk billing doctor visits were introduced.

However, he supported removing duplication between states and the federal government in health and education.

“At the moment we’ve got the federal government second guessing,” he told ABC Radio.

“The thrust of the report seems to be saying take away (duplication and tied grants) - ‘You’re responsible for doing this, here’s some money, deal with the financial challenges and get on with it’.”

Are you worried about the commission of audit report? Continue the conversation on Twitter @newscomauHQ