Tax cuts possible before end of decade
But he concedes there won’t be many people without a grumble when the government hands down its first budget on May 13.
In a speech to the Sydney Institute on Monday, Mr Abbott said the only fair way to repay Labor’s spending binge was by involving everyone, including high income earners asics such as members of parliament.
Neither will it offer a “spurious guarantee” of a surplus by a particular date but it will put the budget on track for a strong surplus within a decade.
“The change asics s in this budget will make personal tax cuts much more likely in four or five years’ time,” he said.
He will be keeping to an election commitment that there will be no changes to the pension during this term of parliament but said there should be changes to the indexation arrangemen asics ts and eligibility thresholds in three years’ time.
Mr Abbott said indexation arrangements and eligibility thresholds for other social security benefits should be adjusted now so that the social safety net is more sustainable for the long term.
He said Labor didn’t just “booby trap” the budget by making vast open ended commitments o asics n schools and hospitals to take effect beyond the four year forward estimates period.
“They created a Ponzi scheme of unsustainable spending because they thought new taxes, more spending and bigger bureaucracies were the answer to every problem.”