The Budget (1 Viewer)

[Generator]

A 'good' budget is somthing that is open to interpretation. I just hope that their 'welfare to work' measures actually work rather than just add to the hardship of those in need yet willing to work.

 

[sunjet]

I just watched the 7:30 report mmmm, 90bn out of 96bn foreign debt paid off..?

 

[monique66]

http://www.budget.gov.au/
For anyone interested...

 

[karpov]

Did anyone notice that there was no education policy

 

[aaaman]

Did anyone notice that there was no education policy

there was, its all about support Trade jobs n Vet courses n still unis get da short end of da stick yet again

 

[Rafy]

yeah, funding for 11,500 new trades and apprentice-based training.

and regardless, Education is mainly a state responsibilty.

 

[mr_shittles]

I just watched the 7:30 report mmmm, 90bn out of 96bn foreign debt paid off..?

Yeah, we all wish.

In reality, Australia still has hundreds of billions of dollars in net foreign debt outstanding. That 90b and 96b is referring to "Net Commonwealth Government Debt). Still, Net Foreigh Debt of $6b is one of the lowest government debts in the world.

 

[mr_shittles]

A constant growth rate of 3% is better than 5% followed by a drop to 1% or less than 1%.

Thats true, but interest rates are more likely to affect economic growth than tax cuts in a budget. So fiscal stimulation on its own would not usually result in that type of volatility.

 

[townie]

so has the tax-free threshold been raised from something more realistic than $6000, like maybe, $12,000, or is it just the...wow...cut from 17% to 15%

 

[mr_shittles]

so has the tax-free threshold been raised from something more realistic than $6000, like maybe, $12,000, or is it just the...wow...cut from 17% to 15%

No rise in threshhold. Every $1,000 increase in the tax free thresahold costs $1.3b and thats too much money for a government that doesn't want the threshold to rise anyway.

 

[ohne]

I think $6000 is way too low for people to be paying income tax. I think the bottom threshold should be raised to about $10 000. I don't really have anything against moving up the top rates, cutting tax rates can actually increase government revenue through less avoidance, higher incomes and more participation in the economy.

I don't have anything against welfare reforms, provided that it doesn't hurt people on welfare. I'm sure everyone agrees the best form of welfare is having a job. Therefore moves to encourage people into work should be positive. There is probably an oversupply of unskilled labour in relation to demand, though.

I guess the health system needs to be brought onto a sustainable basis also, it is quite amazing that in a couple of decades time, 20% of the Australian economy will be consumed by health spending.

 

[Not-That-Bright]

I think $6000 is way too low for people to be paying income tax. I think the bottom threshold should be raised to about $10 000. I don't really have anything against moving up the top rates, cutting tax rates can actually increase government revenue through less avoidance, higher incomes and more participation in the economy.

I don't have anything against welfare reforms, provided that it doesn't hurt people on welfare. I'm sure everyone agrees the best form of welfare is having a job. Therefore moves to encourage people into work should be positive. There is probably an oversupply of unskilled labour in relation to demand, though.

I guess the health system needs to be brought onto a sustainable basis also, it is quite amazing that in a couple of decades time, 20% of the Australian economy will be consumed by health spending.

I agree with all of ohne's points.

On the matter of the budget, I believe it's a sound budget and the majority of the complaints will be comming from those in the lower income brackets who are told by the media that they're getting a raw deal because they only got $6 less tax and costello got $60!! (nevermind that costello pays $60,000 in tax while they pay $1000, an exaggeration.. i know).

 

[nick1048]

Yes its a good budget.

Overall, there is something for everybody.
Its the kind of budget you expect just before an election....

Ohhhh I beg to differ.... unless you mean something as in 'good' or 'bad'... what are single mothers getting or parents, bar the fact that they have to start looking for work when their children are younger. Sure Costello... just extend after school care hours.... but how much does that cost??? How can you possibly support these children and give them all the advantages of Australia's first world economy if your forcing their parents to obtain unemployment at such a premature age?

 

[transcendent]

Why don't they just kill off all the old folk over 80? That'd save lots of money on health and other things.

 

[sugared plum]

the thing is though it's heaps hard to say someone is capable of no working/working 15 hrs a week. the drs who assess people are totally inadequate, if they actually assess people. i know a lot of people with DSP who just filled in the forms - never went to interview or anything and have a pension + benefits. who knows what will happen.

 

[transcendent]

Well you can tell everyone who's over 14 years and 9 months to get out of the house and get a job then.

 

[monique66]

http://afr.com/budget/graphics/graphic05.html the graphic is so...ooogly (yes i am aware that is not a word)
http://www.smh.com.au/news/Budget-2...-of-credibility/2005/05/10/1115584969026.html
Ross Gittans didn't seem that happy about it though...

 

[big_ticket]

Ross Gittens is rarely happy about nething....particularly things done by the liberal government.

 

[Minai]

At last, blackhole business expenditures will get proper taxation treatment in hard legislation so that they'll be properly deductible.

 

[ohne]

As monetioned by generator. As long as those who are on disability pensions are not made to work in low income 'bad' jobs that pay less than the disabilty pension.

Colloquially taking you off the pension and making you find a job shelling peas, pealing potatos or putting shrink wrap on pill bottles.




Putting a price on health are we?

The cost of providing health should not be dictated by the cost...but rather by what is needed.

A healthy society does wonders for productivity.

Sorry Asqy, health costs can't keep rising to infinity, everything has to be sustainable. Otherwise in the long term you find things end up worse. I think there are many savings to be made in terms of medical equipment and drugs
, a lot of equipment purchased by hospitals is unecessary and exactly the same job can be performed cheaper without this equipment or by doctors/nurses. There is nothing like encouraging self-reliance in health costs when you have an ageing population though.

Welfare reform is always a difficult issue. There are definantly two sides to the argument. A relative of mine is on the disability support pension who suffers from anorexia among other things and while this obviously helps her in terms of income, I feel there must be must be some incentive to work where possible. The pension I think has discouraged her from getting out, working, interacting with others and most of all recovering. She has not had a job for years and her condititon was considerably better when she was working. Sometimes I think you have to use both the stick and carrot approach to improve people's welfare. The last thing we need though is a situation where this type of welfare is phased out.

Single parent benefits are a more complex issue, is it better to have one parent working and children in childcare or one parent at home looking after children? I certainly believe it is more positive in social terms in a two parent family to have one at home looking after children rather than two at work only in the pursuit of money. I have seen evidence of the welfare system actually encouraging women to break off with husband/boyfriend to claim this pension. In some circumstances this is necessary although not always.

There are many housing estates in western Sydney where only a fraction of people work and a majority are on single parent, disability or unemployment benefit. This is not a positive situation, especially for children growing up in these suburbs and I think it would be nieve to say our welfare system doesn't encourage situations like this. Welfare is an essential part of a fair society but it is not all positive and we must try to find some kind of balance between fairness and welfare dependency, which probably makes people poorer and gives them lower self esteem.