LightYear Group CEO Michael Jeffriess has expressed deep concerns over the 2024 Federal Budget.
In a pointed critique, Jeffriess highlighted the glaring shortcomings of the budget, emphasising the urgent need for long-term financial planning to address the critical issues facing Australia over the next few decades.
"The 2024 Budget is a band-aid solution for a nation facing a financial storm," Jeffriess said. "We're talking about short-term fixes for problems that demand long-term vision and comprehensive planning. Who is going to pay for the four million Baby Boomers who will need aged care over the next 20 years?"
Here is Jeffriess' take.
A looming crisis
Australia is on the brink of a demographic crisis. With four million Baby Boomers already or set to retire over the next decade, the need for aged care services is projected to skyrocket.
This is not just a future problem — it’s a present-day emergency.
The budget, however, fails to allocate sufficient resources to prepare for this surge in demand. Instead, it leaves us wondering: who will bear the financial burden of this ageing population?
The dementia epidemic
The statistics are staggering. In the next 10 years, Australia will face over 1 million dementia patients.
Yet, the budget does not provide a robust plan to address this impending healthcare crisis.
The cost of dementia care will be astronomical. Without significant investment now, we are setting ourselves up for failure.
$48 billion submarine project
In the midst of these pressing domestic issues, the government has committed $48 billion to a submarine project. This is a colossal expenditure at a time when our priorities should be domestic stability and care.
Are we seriously prioritising military spending over the health and well-being of our citizens?
Business liquidations and economic instability
Hundreds of thousands of businesses are on the brink of liquidation and the budget does little to stem this tide.
The continuous increase in energy and food prices, coupled with the economic strain on small and medium enterprises, is leading us towards a cliff.
We need targeted support for these businesses to prevent widespread economic collapse.
NDIS cost blowout
The National Disability Insurance Scheme (NDIS) is another area where costs are spiralling out of control.
The budget does not address these blowout costs effectively, leaving vulnerable Australians in a precarious position. The NDIS is a lifeline for many, and its sustainability must be ensured.
Short-termism and long-term debt
Governments are looking no further than the next election, instead of engaging in real budget planning for decades in advance.
This short-termism is leading us further into debt — an expected $1 trillion shortly.
Who is going to pay for that? Is it going to be increased income taxes, a rise in GST, wealth taxes or the proposed intergenerational transfer tax of 20% on estates greater than $500,000 or the big honeypot of superannuation.
Call for visionary leadership
We need visionary leadership that plans for the future, not just the next election cycle. It’s time to address these issues head-on with strategic, long-term solutions that ensure the prosperity and well-being of all Australians.