GP co-payment goes in Abbott overhaul

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THE federal government has announced a Defence project overhaul and tax avoidance crackdown as part of its bid to shed policy “barnacles”.

BUT Labor says Treasurer Joe Hockey’s efforts to fix the budget and economy are failing, as new business and consumer confidence figures suggest.

A fortnight after Prime Minister Tony Abbott sought to reset the agenda by scraping away policy “barnacles”, the government announced on Tuesday a plan to fix the troubled Air Warfare Destroyer project and shore up shipbuilding jobs for the long term. Defence Minister David Johnston underlined the government’s concern about delays and cost overruns last month when he declared he would not trust government-owned shipbuilder ASC – the lead partner in the AWD alliance – to build a canoe. “We inherited a significant problem and we are now setting about the very difficult and complex task of putting in place a solution,” Senator Johnston said. The government has not yet made a decision about how it will replace the Collins class submarines, but is under pressure to use Australian technology and labour. Mr Hockey would not reveal what the plan would cost the budget, but some detail could be expected in next week’s mid-year economic and fiscal outlook. As he continued his search for extra revenue and cost savings, the treasurer announced a crackdown on tax avoidance by multinationals, which could reap as much as $3 billion. Tax officials have been embedded in 10 multinational companies and Australia is seeking the support of other countries to close loopholes. “It robs Australians when multinationals don’t pay tax here,” Mr Hockey said. Shadow treasurer Chris Bowen said Mr Hockey’s tax crackdown had no detail and amounted to playing catch-up with Labor’s $1.1 billion plan, which lapsed due to the 2013 election. “When it comes to tax evasion, all (Mr Hockey’s) got is empty excuses,” Mr Bowen said. United Voice national secretary David O’Byrne, whose union represents Australian Taxation Office workers, said the extra 60 audit positions were a start but paled when compared with the decision to cut 4700 jobs from the agency. Mr Hockey’s decision came as business confidence fell to its lowest level since its bounce just before 2013’s federal election, according to a National Australia Bank survey. And according to the latest ANZ-Roy Morgan survey, consumer confidence is at its lowest level in four months. “He is not in control of his portfolio. He has lost control of the budget and the economic story,” Mr Bowen said of the treasurer. Mr Hockey said he was getting “good feedback” from retailers before Christmas. “I know it has been a difficult year for some Australians, but I am confident it will be a good Christmas,” he said.