The PBO supports Parliament with independent fiscal analysis
The Parliamentary Budget Office provides independent and non-partisan analysis of the budget cycle, fiscal policy and policy costings for parliamentarians. It was created to strengthen Parliament's ability to scrutinise the fiscal impact of policy proposals.
The PBO does not choose which policies are politically desirable. Its role is to estimate fiscal effects using the information, assumptions and methodology relevant to the request.
Policy costings depend on specifications
A costing needs a clearly defined policy: eligibility rules, start date, rates, behavioural assumptions and interaction with existing programs. A vague promise cannot be costed accurately until those details are specified.
Two policies with similar slogans can therefore have very different fiscal costs if the design details differ.
Election commitments and post-election reports
The PBO has roles connected with election commitments and can publish analysis after elections under its statutory framework. During a campaign, parties can also use costing processes available through the PBO subject to the rules in force.
Published costings should be read with the stated assumptions, data limitations and time horizon rather than reduced to one headline number.
A costing is not an economic forecast of every consequence
Most costings estimate the direct impact on the Commonwealth Budget. Broader economic effects may be included where appropriate and methodologically supported, but a costing is not necessarily a full model of every social or economic consequence.
That distinction matters when a party says a proposal 'costs' a certain amount. The number usually refers to the fiscal impact over a specified period, not the total value or welfare effect of the policy.
How to use a PBO document
Read the policy specification, costing period, assumptions and caveats before comparing rival promises. Check whether the figure is a cash impact, fiscal balance impact or another measure.
The PBO's independent publications are particularly useful during election campaigns because they provide a common analytical framework outside party advertising.
Primary sources and further reading
We use authoritative Australian institutions as the starting point for this explainer. Follow these links for the underlying rules, official guidance and current details.