Tax reform over 'squeezing out' a surplus for 'purely political reasons'

The Australian’s Economics editor Adam Creighton says Treasurer Josh Frydenberg’s ambition at times “gets the better of him in a policy sense,” with his focus being “so much on the politics and not the policy”.

With the yet-unknown effect of both the coronavirus and the bushfire crisis on the economy, many economists are predicting a budget deficit, but Mr Creighton said the government “focuses too much on their surplus” and as a result it “sucks up the oxygen” from other issues.

Mr Creighton told Sky News host Peta Credlin he would “rather see the government be pursuing tax reform” than instead trying to “squeeze out” a surplus, for what he said are “purely political reasons”.

Fellow panelist and News Corp business columnist Terry McCrann said whether it’s a “$5 billion surplus or a $5 billion deficit … it’s no big deal”.

“What matters is Wayne Swan $40 billion deficits from now to the rest of time,” he said.


Image: News Corp Australia

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