Trading Room home page

Cuts controversial but necessary: Abbott

Market watch top headlines

Australian reports

World reports

Stocks to watch

LYC, NST, OGC, SHL, WPL,

SYDNEY, Feb 15 AAP

February 15 2013, 1:45PM

Opposition Leader Tony Abbott has laid out the coalition's broad economic strategy, saying his government would inject an "instantaneous adrenalin charge" into the economy through scrapping taxes and controversial spending cuts.

The carbon tax, mining tax, School Kids bonus and thousands of public sector jobs are some of the first on Tony Abbott's hit list, should a Liberal government be elected in September.

A coalition government would also scrap the 6000-a-year increase to the country's refugee intake.

"The coalition will get spending down. We will do it in ways which we believe are responsible. Some of the ways we will do it will be controversial," Mr Abbott told the Committee for Economic Development of Australia (CEDA) conference in Sydney on Friday.

He said it was possible to deliver tax cuts, increase spending and have a budget surplus at the same time through boosting productivity and growth in the economy.

"If we do have strong economic growth, profits are up, income is up, employment is up and government revenue is up," he said.

"In fact, with strong economic growth the government can simultaneously increase spending, cut taxes and boost the surplus.

"And if you say that's a magic pudding, it is actually what happened for the last five or six years of the Howard government."

A change of government in September, Mr Abbott said, would create an "instantaneous adrenalin charge" in the economy.

"There will be an instantaneous surge of confidence because an incoming government will understand that simple truth that business is the source of prosperity," Mr Abbott said.

Acting Treasurer Penny Wong told AAP on Friday Mr Abbott had now confirmed that he would cut jobs, services and support for families.

"The coalition has admitted it needs to make $70 billion in budget cuts and now it's clear they plan to make cuts aimed squarely at hard working Australian families," Senator Wong said in a statement.

"Under an Abbott Liberal government, families would have the School Kids Bonus ripped away and will get nothing to help with their childrens' education."

Senator Wong said the speech showed Mr Abbott was a "policy lightweight".