Public backs independent body to monitor Aussie Budget

Forty-two per cent said reducing the deficit should be addressed by removing existing tax breaks. Photo / 123RF

More than half of people back the introduction of an independent body to monitor and report on the Australian Federal Budget, according to a poll by Chartered Accountants Australia and New Zealand.

The national survey of more than 1,000 people was conducted ahead of the Australian Federal Government release of its Mid-Year Economic and Fiscal Outlook tomorrow.

Chartered Accountants Australia and New Zealand (CAANZ) said the poll result supported its call for an independent body to monitor the Budget body, with 55.4 per cent in favour.

Geraldine Magarey, head policy leader, said she hoped the result would be taken on board by policymakers.

"What we are seeing today is a clear sign from the public of how they want our national finances to be managed," Magarey said.

"Given the sometimes crude instruments - and often short-term thinking - used by government, it is no surprise people want to see independent monitoring of spending."

CAANZ suggested independent monitoring of the Budget could be managed by the Parliamentary Budget Office, and could be supplemented by a requirement that governments forecast the fiscal implications of key policy decisions over 10 years.

Such bodies already existed internationally, including in the UK and Germany, CAANZ said.

The poll also showed 66 per cent of people thought budget deficits were acceptable.

Magarey said it was interesting to note that a majority of people thought deficits were acceptable in certain circumstances "and an independent monitoring body would rightly allow the public to hold policymakers to account over how deficits are used".

The polling results suggested people thought the government's strategy of cutting funding to reduce the deficit was the wrong approach, CAANZ said.

Forty-two per cent said reducing the deficit should be addressed by removing existing tax breaks, compared to 21 per cent who favoured spending cuts.

"People want to see meaningful reform of tax breaks over simply cutting funding from major programs. This would simplify the federal tax system and safeguard public investment in major programs that have been shown to bring long-term benefits," Magarey said.

"Viewed together, the results demonstrate an appreciation amongst the public of the occasional need for government debt, but prefer this to be in the form of spending, rather than tax breaks."

The poll also showed that people thought the economy (35 per cent) and healthcare (34 per cent) should be the government's highest priorities.