ACOSS wants Tony Abbott and Joe Hockey to ask rich Australians to do more heavy lifting to fix budget

A RADICAL plan to fix Australia’s budget calls on Tony Abbott and Joe Hockey to ask wealthy Australians to do more heavy lifting to plug the growing deficit.

Treasurer, Joe Hockey (left) with Prime Minister Tony Abbott speaks to media at Hobart Airport

PRIVATE health insurance rebates would be scrapped, small business concessions abandoned and superannuation taxes increased, under a radical plan by the nation’s peak welfare body to fix Australia’s budget.

The Australian Council of Social Services is urging the government to find billions of dollars in additional revenue so it can boost welfare payments, increase support to single parents, and enhance affordable housing subsides.

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More changes ... the peak welfare group wants this years budget to be “a lot fairer than the last one”. Picture: Supplied

In its 2015 budget submission, ACOSS is demanding Tony Abbott and his Treasurer Joe Hockey ask wealthy Australians to do more heavy lifting to plug the growing budget deficit.

“This Budget must be a lot fairer than the last one, and the way this can be achieved is by seriously targeting wasteful spending at the top end, including tax expenditures, instead of pursing policies that shift the burden on to people on the lowest incomes,” ACOSS chief executive Cassandra Goldie said.

ACOSS has argued that Australia’s welfare system is already tightly targeted and the “real waste” in the budget is the tax concessions, which predominately benefit people on high incomes.

New take ... Australian Council of Social Services chief executive Cassandra Goldie is urging government to target wasteful spending. Picture: News Corp Australia

Among the most controversial recommendations is a push to raise more than $6 billion a year by abolishing the 30 per cent private health insurance rebate, which ACOSS argues has done little to reduce pressure on public hospitals.

Another $2 billion could be saved by removing capital gains tax concessions for small business assets, and curtailing the use of personal trusts to avoid personal income tax.

New proposal ... abolishing the private health insurance rebate could save more than $6 billion a year. Picture: Supplied

Strengthening the aged pension asset test and abolishing the seniors’ supplement, so to prevent wealthy older Australians living off the public purse, would also save billions.

ACOSS also wants negative gearing, capital gains tax, and generous superannuation tax concessions to be put in chopping board.

“This Budget cannot repeat the mistakes of the last one, which imposed the heaviest burden on those with the least capacity to carry it, and proved to be socially and economically damaging and divisive,” Ms Goldie said.

Helping the needy ... ACOSS wants the Newstart allowance to be raised so welfare recipients do not live below the poverty line. Picture: News Corp Australia

But the welfare group wants more money to be spent on increasing social security payments like Newstart by $51 a week, for family payment increases linked to wages, and more generous payments for single parents.

They also want billions of dollars spent on affordable dental care, Aboriginal medical services and affordable housing.

“A fair Budget must value appropriate investment in people and the community services and programs that support them, especially during a time of economic slowdown with rising unemployment and growing levels of poverty,” Ms Goldie said.

Originally published as ACOSS wants Tony Abbott and Joe Hockey to ask rich Australians to do more heavy lifting to fix budget