The year in review
The 2016–17 financial year marked the fifth year in which the Parliamentary Budget Office (PBO) has been in operation. Over these five years, the PBO has established itself and filled a significant gap in Australia’s public policy landscape. It has supported a more informed policy debate by providing all parliamentarians with access to services to estimate the fiscal cost of policy proposals, providing transparency around the fiscal cost of election platforms for major parties and publishing research to promote a better understanding of fiscal policy and the budget.
After the 2016 general election, in accordance with section 64T of the Parliamentary Service Act 1999, the Joint Committee of Public Accounts and Audit (JCPAA) initiated an independent review of the PBO’s operations to focus on how the PBO could build on its foundations and strengthen its abilities.
The review, completed in March 2017, found that the PBO is widely regarded as a credible, independent and non-partisan organisation that produces rigorous analysis relevant to the public policy debate. Sixteen recommendations were made in relation to how the PBO could further improve its operations and effectiveness. The PBO agrees with all of the recommendations.
During 2016–17, the demand for the PBO’s services remained high, although it eased following the general election, with the number of responses to requests for costings and budget analysis declining from 3,251 in 2015–16 to 1,888 in 2016–17. Nonetheless the demand for costings and budget analysis outside an election period has continued to increase strongly over time; activity in 2016–17 was around double the level of the previous non-election year (2014–15).
Over time, parliamentarians are increasingly using the PBO as part of their policy development process and in the course of parliamentary business, ensuring that the fiscal cost of proposals are taken into account in the policy debate. Since April 2017, the PBO has provided medium-term (10 year) cost estimates in response to all costing requests so that it is clearer whether the estimates of the fiscal cost over the forward estimates are representative of the longer term impacts the proposal may present. The PBO is also increasingly being used to provide broader analysis of budget issues, including, where possible, to understand the distributional impacts of policy proposals.
In addition to our costing and budget analysis work, the PBO made submissions, at their request, to the House of Representatives Standing Committee on Economics inquiry into tax deductibility, and to the Senate Select Committee on Red Tape inquiry into the effect of red tape on the sale, supply and taxation of alcohol. Our submissions to these inquiries are available on our website.
The PBO’s research program has continued to focus on improving the transparency and public understanding of the budget and fiscal policy settings. Factors that affect the sustainability of the budget over the medium term have continued to be a significant focus.
During the year, the PBO published a number of analytical research reports. These included the Post-election report of election commitments, following the 2016 general election, and the National fiscal outlook, following the release of 2016–17 budgets across all levels of government. The PBO also published two sector specific reports, analysing fiscal issues associated with the operation of the National Broadband Network and the Future Fund.
The PBO’s work was cited regularly in the media as part of ongoing public policy debates. The PBO’s publications were also frequently accessed via our website.
Download the full report above.