At the time of writing (May 2026) our State and Commonwealth governments will soon be $1 trillion in debt, and the insatiable appetite of our politicians to spend, spend and spend big, will see debt levels continue increasing. As it does, interest rates and payments will also increase. And this gives rise to a problem – which is, where does government get the additional money? It can reallocate money away from other stuff- from schools, hospitals, roads and so on – or it can increase a raft of taxes or borrow more money to pay the additional interest. Our current political class don’t have the courage to implement austerity measures (reduce government expending) – as it will be unpopular and result in their losing the next election. Increasing taxes results in lower tax collection in the future and borrowing more money delays and increases the problem. A country cannot borrow or tax its way to prosperity. Both bring poverty.
Reversing our current trajectory to poverty requires a major reduction in government spending. This will be unpopular, very unpopular, so unpopular that none of our current major political parties have policies to tackle it. It is however necessary for our well-being and that of our children and grandchildren. And we can’t blame our politicians. We have allowed and encouraged their fiscal mismanagement. Many celebrated the GFC fiscal stimulus, as they did the Covid stimulus and elected and re-elected governments that significantly increased the size of our public sector, that embarked on economically unviable public infrastructure projects and allowed their costs to significantly exceed budgets. Unfortunately, the chickens have come home to roost – the time has come for us to face the consequences of our actions. If we don’t, the inevitable will happen, we’ll become an impoverished nation.
Here’s what CLA will do to fix the problem, to stop government overspending:
- It will abolish all middle-class welfare and other government grants, subsidies and other benefits. It will stop all first-home buyer loans and grants, stop childcare subsidies and stop EV subsidies.
- It will ensure that social welfare is exclusively for those on struggle street who are either incapable of working (through age or injury), actively looking for work or retraining. If they get a job offer and reject it or appear intent on ensuring they don’t get an offer, then they lose any entitlement to social welfare. CLA sees no reason why hard-working people, those for example those leaving home well before 6 am and getting back home after dark, should pay a living allowance to someone who has a leisure preference, is unable to work due to having an addiction or considers it too demeaning to accept some jobs.
- It recognises that government has a responsibility to create a business-friendly environment where many job and business opportunities exist for those looking for work and offers such policies.
- It also recognises the government needs to facilitate the creation of work opportunities for those not suited to the modern (21st century) economy, and has a plan to create such opportunities, and is open to considering others.