Tony Abbott’s former business adviser Maurice Newman says Australia won’t be prepared when the next recession hits.

He says it’s not a matter of if but when global markets take a turn for the worse and when they do, Australia will get hit.

“The world itself is wallowing in debt and we will not be prepared for that.

“There is absolutely no question that at some point, probably within the next couple of years, the world is going to move back into some recession.

“The world markers will move… and we will be in a much weaker position to do something about it than we were back in 2007.”

As the government gears up to release the Budget in five weeks time, Mr Newman says the focus must be on reigning in spending.

“We’re living beyond our means and it looks as though we’re prepared to go even further.

“All we get is these wonderful promises of handouts of lower taxes… but no idea of where the money’s going to come from to keep spending the money which we are.”

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