This year's budget represents an absolutely critical one for Australia as it makes especially visible the underlying structural deficit that has faced Australia now for many years.
When assessing some of the assumptions underpinning Wayne Swan’s 2013 federal budget, two things spring to mind: the Henry Tax review and the notorious inaccuracy of forward estimates.
History shows it might be foolhardy to rely on the accuracy of forward estimates. And meanwhile, the repercussions of failing to undertake structural economic reform by amending our taxation system will continue to weigh on our economic fortunes.
So what is the link between the Henry Review and the forward estimates? One was timely but ignored; the other has time against it.
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