Australia politics live: Labor flags additional $1bn in budget for defence

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Marles flags additional $1bn in budget for defence

The defence minister and deputy PM, Richard Marles, is at the Avalon airshow in Victoria today and has provided an update on defence spending in the budget.

He says the government will provide an additional $1bn in the budget (that’s new money), plus $9.6bn in defence funding to be spent over the next four years that was already planned.

Last year Labor said it would spend an extra $50bn over the decade to increase defence spending from about 2% of GDP to more than 2.3% of GDP.

Part of the $10.6bn sees the bringing forward of an additional $1bn, and that’s because of the need to accelerate Australia’s capability development …

The acceleration of the $1bn is really there to ensure that the very ambitious timelines that we have in relation to all of this are going to be met.

This all comes as the US is trying to get Australia to spend even more money on defence (they’re talking about Australia spending up to 3% of GDP).

Richard Marles speaks to media at the Avalon Australian international airshow in Victoria. Photograph: Joel Carrett/AAP
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Josh Butler

Josh Butler

The Coalition’s plan to allow homebuyers to access a house deposit from their superannuation would eventually cost the budget billions in increased costs for the aged pension, Parliamentary Budget Office analysis reports.

Labor MP Daniel Mulino, the chair of the parliament’s economics committee, said the analysis shows “it will cost first home buyers more in the short term and taxpayers more in the long term”.

The Coalition’s affordable housing policy would allow Australians to access up to $50,000 from their super to buy their first home, with the money initially withdrawn from super required to be returned when the house is sold to support retirement.

The Labor government has strongly opposed the idea, proposed at successive elections, saying it would affect retirement savings. On Monday, PBO analysis was released saying the parameters of the Coalition policy could increase age pension costs by $1.4bn per year by the 2050s.

The modelling assumes 20% of renters would take up the chance to take $50,000 from their super, meaning around 300,000 people. A range of other assumptions (including on the rate of super returns, tax on super earnings, mortality rates and that people wouldn’t make extra contributions to their super to compensate for withdrawing the initial deposit).

Labor has also highlighted University of South Australia research forecasting the policy could also inflate house prices by up to 10%.

Mulino said the PBO modelling showed that “if people withdraw money from their superannuation, all taxpayers would be footing the bill with the cost of the Age Pension to grow”.

Peter Dutton’s reckless plan to force first home buyers to raid their super will push house process up by even more than the $50,000 super withdrawal he is proposing. The real solution is to build more homes and help first home buyers without forcing them to rob from tomorrow to pay for today.

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