The ASP Budget Expenditure Model
Sources of Revenue:
$910 Billion in revenue represents more than a doubling of current taxation revenue generated by over 125 federal, state and local taxes.
ASP expenditure compared with combined Federal and State Government spending:
Social Security and Pensions
There are approximately 3.5 million Australians aged over 65 who, under ASP policy, are all entitled to the non-means tested Seniors Pension of $1200 per fortnight, regardless of marital status. (Please see Pensioners Policy).
There are an estimated 700,000 disabled Australians permanently unable to work. The guidelines and classifications are very liberal, so we expect this number to actually be much lower, particularly as many new job opportunities will become available that will enable even some moderately mentally or physically disabled people to be able to contribute in work. All truly incapacitated Australians with disabilities who genuinely cannot be employed in any capacity will receive the full pension of $1200 per fortnight.
The total maximum cost to fund the $1200/fortnight senior and disabled pensions, based on current numbers, will be approximately $130 Billion per annum. This is budgeted under ASP policy.
The remaining $70 Billion in the budget will fund temporary welfare for individuals and families, Carer pensions, student pensions, other social programs and welfare, Baby bonus and paid parental leave, and the cost of the bureaucracy (note: Centrelink and related bureaucracies will be greatly downsized due to the standardised nature and non-means testing of pension payments).
$190 Billion per annum has been apportioned for government debt repayment (see below), some public sector wages and superannuation entitlements, some government grants, various bureaucracies like the ATO (which will be greatly downsized), and a portion of the funds will be distributed to state Governments and local Councils, since they will have no other means of revenue generation. Local Councils will receive $30 Billion, up from their current revenues of $15 Billion generated through rates. Some services/infrastructure that councils currently pay for will be funded by separate federal government revenues.
Currently, expenditure on education, health, infrastructure etc have been jointly funded by both the federal and state governments, each to greater or lesser degrees. This will no longer be the case under ASP economic policy. All administration of, and funding for education, health and infrastructure will be by the federal government. It is ASP policy that the role of state governments be greatly reduced.
All funding for local council services will be funded directly by the federal government. Funding will be allocated based on the total population, demographics and density of the local electorate, their regional location, and the costs of essential services such as garbage collection, maintenance of local parks and other services etc. A generous portion of their funding will be for "discretionary purposes", as their local electorate may choose via local referendums and or via representation to their local Councillors.
Local infrastructure / road upgrades and maintenance will be funded directly by the federal government, although local councils may be active in identifying areas needing maintenance, extensions or upgrades and bring it to the attention of the relevant federal department, and may also petition the federal government for additional infrastructure developments to meet local needs.
As of March 2016, the total size of current Government debt (Federal, State and Local) is currently $735 Billion. This is totally unacceptable. Because of poor management and over-spending, Australian governments have been adding to their debt by almost $70 Billion a year since 2007, when total government was only $138 Billion. If elected, the ASP will bring government debt back to zero within 8 years, by paying down approximately $100 Billion a year on these loans and liabilities. It is likely as revenue expands over the coming years under ASP economic policies, this profligate debt will be paid off much sooner.
Concerning Trade Deficits:
Under an ASP Stewardship, we will reverse the issue of trade imbalance leading to trade deficits. Australia will quickly become a net exporter, not an importer. With all the various stimuli to the economy, manufacturing and production will rapidly intensify, and our exports will increase swiftly. Imports will likely decline as well since we will be imposing higher import duties on various items in order to encourage Australian industry to meet local demand for the desire goods.
As a few examples of a growing export industry, through several of our policies, Australia will become a world leader in supplying organic and bio-dynamic produce to international markets. This will become a major export item within short course of an ASP government being elected. Additionally, with heavy targeted investments that an ASP government will make, Australia will become a world leader in development, manufacture and supply of advanced battery electric vehicles.
As further considerations to reverse the trade imbalances, when the ASP commences infrastructure development on a scale never before seen worldwide thanks to our monetary policy, we will be investing in such visionary projects as a high tech Maglev train to service the east coast of Australia. Now, it will take at least a year to fully implement our tax and monetary policies, and a project like this colossal Maglev train line will take at least another year in planning.
Australian industry, being encouraged and stimulated by an ASP government that will be seeking to build these infrastructure projects using Aussie ingenuity and locally made parts/ components, will likely have a couple of years with which to bring online appropriate high-tech manufacturing capacity with which to service the material requirements for construction of such a project, so that by the time we are ready to begin actual construction on the Maglev train line, the technology and components will be readily sourced within Australia.
Therefore, as Australia begins an infrastructure construction boom unlike the world has ever seen, we will not have to rely upon heavy importation of parts or materials required in said infrastructure projects, thereby keeping in check any potential for a growing trade imbalance.
In so far as dealing with growing net exports and the influx of foreign capital, an ASP government will seek to limit the build-up of foreign currency reserves. Enough foreign currency should be kept on hand to deal with immediate trade requirements, however, we will not allow Australia to end up in a situation where we are the owners of large sums of foreign currencies that will only continue to devalue due to poor international monetary policy.
It is ASP policy in this respect to require that Australian exports be traded for foreign resources. Instead of storing up large foreign cash reserves, we would prefer to store up precious metals, rare earth minerals and other valuable commodities as a more secure, stable and practical store of wealth.