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National Commission of Audit


The National Commission of Audit was a commission formed by the Abbott Government on 22 October 2013 as an independent body to review and report on the performance, functions and roles of the Commonwealth government. The chair of the Commission was Tony Shepherd AO who is a former head of the Business Council of Australia. The other Commissioners were Peter Boxall AO, Tony Cole AO, Robert Fisher AM and Amanda Vanstone.

The Terms of Reference for the Commission was to make recommendations to return the budget to a sustainable surplus of 1% of GDP by 2023/24. The Commission was not asked to examine the revenue side of the budget, though it looked at some revenue issues. The Commission's report was the first full scale review of government expenditures for 18 years.

The Commission Report was titled Towards Responsible Government and published in two parts. Phase One Report, published in February 2014, dealt predominantly with improving the sustainability of finances, and Phase Two Report, published in March 2014, mostly addressed public sector performance and accountability as well as infrastructure. The Commission made 86 recommendations – 64 in its Phase One Report and 22 recommendations in its Phase Two Report. Among the recommendations, the report recommended a slowing of the increases in the age pension to 28% of the average weekly earnings, an increase in the retirement age to 70 by 2035 and the inclusion of the family home in new means testing from 2027. These Commission's recommendations were adopted in the budget.

The Commission also recommended changes to the bulk billing arrangements under Medicare, by the introduction of a compulsory copayment regime. The recommendation was accepted by the Abbott Government in the 2014 Australian federal budget, though the proposed budget measure deviated from the committee's recommendation in the copayment being linked to funding for a medical research fund. The budget measure has been widely criticised.


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