‘Phantom’ savings pad budget figures

The Australian 12:00am March 22, 2019

Michael Roddan

There are $1.1 billion worth of unlegislated budget savings that have not yet passed parliament that the government is factoring into the budget bottom line over the forward estimates, according to the independent Parliamentary Budget Office.

The PBO’s estimate of the revenue measures that are not yet law grows to $5.7bn out to the end of the decade, relating to the planned amendments of the research and development tax incentive.

The reform was announced last May and targets big business in an effort to save $2.4bn over the next four years but is yet to become law.

The PBO’s pre-budget analysis comes as the Morrison government races towards finalising its April 2 federal budget. However, it only includes legislation that has been announced and appeared in budget papers more than a year ago.

This means many of the reforms announced in last year’s budget that are yet to gain royal assent are left out of the PBO’s analysis.

One expense measure remains unlegislated, which is the $190 million cost of the indigenous recognition referendum.

Parliament returns next month for one week before the federal election is called — it is likely to take place in May.