Opposition Leader Calls for End to "Era of Dependency" in Major Economic Speech
Sussan Ley promises government program audit, warns of unsustainable debt trajectory in first major address since becoming Liberal leader
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Opposition Leader Sussan Ley delivered a sharp attack on government spending Wednesday, declaring "the time of dependency can and must give way to a new age of empowerment" while promising a comprehensive audit of federal programs if the Coalition wins the 2028 election.
In her first major economic speech since becoming Liberal leader, Ley warned that Australia is running "a peacetime economy on emergency fiscal settings" and accused the Labor government of normalizing excessive spending that threatens the nation's AAA credit rating.
"It's become almost taboo in politics to suggest that not everyone is entitled to a government benefit," Ley said during her address to the Committee for Economic Development of Australia. "But I ask, is it fair to pile up debts that our children will have to pay off?"
Ley cited research showing more than half of Australian adults rely on government for most of their income, while just 10 percent of taxpayers pay two-thirds of all income tax.
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Spending and Debt Concerns
The Opposition Leader warned that government spending will reach 27 percent of GDP this year, "the highest level outside of a recession since 1986, and up from 24% since the government came into office."
She described current fiscal settings as unsustainable, noting gross federal debt stands around $959 billion and is projected to hit $1.2 trillion by 2028-29 under government projections.
"It means we are setting new records for indebtedness, yet the Government's answer is just to keep spending more, despite having to spend $50,000 every minute on interest," Ley said.
The interest bill represents one of the fastest-growing budget items, she said, with "every dollar spent on interest is a dollar that can't be used for hospital schools or tax relief."
Labor Policy Criticism
Ley specifically targeted Labor's electric vehicle policy as emblematic of misplaced priorities.
"Tax breaks on leases mean that taxpayers are now covering up to half the cost of an electric vehicle for high-income earners," she said. "With policies like this, the electorate, having lived through COVID, is now being conditioned to expect ongoing government assistance as a matter of course."
She argued Labor has "normalised and extended the era of big government" rather than using post-pandemic recovery to restore fiscal discipline.
"Rather than use the recovery to pare back spending, the government has layered on even more permanent programs and higher baseline spending," Ley said.
The Opposition Leader noted that Labor's policy decisions since taking office have added $37 billion to the 2025-26 deficit forecast, which she said could have been just $5 billion "if new spending had been responsibly offset."
Coalition Policy Framework
Ley outlined several principles that would guide Coalition policy development for the 2028 election, beginning with the premise that "government should live within its means."
"Just as any household or business cannot forever spend more than it earns, neither can a nation," she said. "Running deficits in a crisis or downturn is acceptable, even wise, to cushion the blow. But persistent deficits in good times are not."
She promised the Coalition would implement "quantifiable fiscal rules" including requiring every new dollar of spending to be offset by savings, reprioritization or reforms.
"We would have a clear handbrake on the amount of hacks collected, because Australians deserve certainty that the government won't take a bigger and bigger slice of their income," Ley said.
Government Program Audit
A key commitment involves conducting a comprehensive review of federal programs if elected.
"We would also undertake an audit of government programs. Every dollar would be tested. Is it delivering results? Does it reflect the core responsibilities of government? Can it be done more efficiently or not at all?" Ley said.
She emphasized this would not target essential services.
"That doesn't mean attacking the welfare safety net or health or school funding, as Labor, of course, will scare Australians with. It's about reducing waste and low-value programs that allow us to strengthen essential services like Medicare and deliver tax relief for families who are under pressure," she said.
Welfare and Dependency Claims
Ley argued current policies have created unhealthy dependency relationships between citizens and government.
"Unfortunately, in the past few years, the pendulum has swung too far towards dependency," she said. "The mindset of government will take care of everything has been actively encouraged."
She advocated for targeting assistance more precisely.
"We believe government support should be a safety net, not a hammock. That means, for example, we should not be paying benefits to high income households," Ley said.
The Opposition Leader emphasized the Coalition's commitment to supporting vulnerable Australians while encouraging self-reliance.
"Our goal should be to help people off welfare and into self-reliance, not to add more people onto government supports unnecessarily. Ultimately, the best form of welfare is a job and a thriving private economy," she said.
Economic Growth Strategy
Ley positioned economic growth as central to fiscal repair, criticizing the government's productivity record.
"Productivity growth is the key. It has gone into reverse under this government, dropping 5%, and unless it is revived, living standards will continue to decline," she said.
She promised Coalition policies would focus on "private sector-led growth, on driving investment and job creation, and on ensuring that Australia is resilient enough to withstand future shocks."
Reform areas would include "tax, regulation, skills and infrastructure to lift productivity and competitiveness," according to Ley.
Long-term Fiscal Challenges
Drawing on the Intergenerational Report, Ley warned of structural spending pressures ahead.
"By 2063, health, aged care, pensions and the NDIS will consume half the budget, funded by a smaller workforce. And without reform, deficits will persist and then worsen," she said.
She argued current policies would create "a permanent fiscal gap that compounds year after year" for future generations.
This trajectory necessitates immediate action, according to Ley.
"One lesson from the Intergenerational Report is that problems only get harder and more painful the longer you pursue activity. We are determined to tackle some of the structural drivers of unsustainable spending," she said.
Implementation Challenges
Ley acknowledged the political difficulty of fiscal reform while expressing confidence in public support for well-explained changes.
"There will be tough calls ahead. Programs cannot keep growing at 10 per cent a year. Australians deserve to hear this truth before the crunch arrives," she said.
She referenced historical precedents for successful reform.
"Past governments, both Labor and Coalition, have made difficult reforms work by levelling with the public and designing those reforms fairly. Australians will accept change if it is explained clearly, applied fairly, and done with future generations in mind," Ley said.
Government Response Context
The speech comes as Treasurer Jim Chalmers earlier Wednesday described the Liberal Party as "run now by this weird collection of cookers and crackpots" while announcing a $1.1 billion clean fuels fund.
Ley's address represents her most comprehensive economic policy statement since becoming Opposition Leader, setting up clear battle lines for the 2028 election campaign.
Ley noted the Coalition's previous fiscal record, including eliminating federal debt and establishing the Future Fund, which now manages more than $300 billion.
"That discipline served us incredibly well and it gave us the flexibility to respond to the global financial crisis and to COVID when they hit. But since then, we have veered off course. It's time to course correct," she said.
Business Partnership Appeal
Addressing the business community directly, Ley called for private sector cooperation in economic recovery.
"A stronger economy is a national project. Business must invest and employ. Government must set the right guardrails and then get out of the way," she said.
She framed the choice facing Australia in stark terms.
"The easy path is to keep spending, to keep borrowing, to keep expanding the role of government. But that path leads to decline. The better path is one of responsibility, empowerment and shared effort," Ley said.
The Opposition Leader concluded by positioning fiscal responsibility as essential to maintaining Australia's character as a land of opportunity.
"I want Australia to remain a land of opportunity, where each generation can climb the ladder of prosperity. I want us to hand off to our children a nation in better shape, not worse. That means handing them public finances that are robust, not ruined," she said.
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