Surplus
Very, according to Julia Gillard. The PM has been at pains this morning to convince everyone the $1.5 billion buffer will not be blown out of the water at the first sign of trouble.
It’s a hard sell. This time last year Wayne Swan predicted the 2011-12 deficit would be $22.6 billion. In November’s MYEFO it was revised to $37.1 billion, and last night it was confirmed to be $44 billion.
According to Swan, the GFC wiped $150 billion off Australia’s tax take in the five years to 2012-13. A short time ago on Sky News Gillard pointed to this drop in revenue as proof of how hard she and Swan would fight to maintain the promised surplus.
How long would the Government have lingered over this question: Do we try and probably fail to give companies $4.7 billion or do we back the sure thing of offering the cash to grateful families?
In a Budget devoted to suburban street politics more than high road economic management, the answer would be: Not much.
Given that a large chunk of that money, around $1.5 billion in 2012-13 and 2013-14, would be handed out as voters approached an election, it’s no surprise that the families won.
Continue reading "This Federal Budget is all about the next election" »
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andye says:
@glenm - “it needs to artifically restrict competition to make a theoretical profit.” How do you think the copper network is operated? Telstra is both the wholesale provider AND a competitor for all the other ISPs. This is a massive conflict of interest. The precedent now is also for those… Read more »
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Amazed says:
Yet another bleeding heart bringing up something with absolutely no relevence at all. Most of those people are in that position because of criminal governments that take all the foreign aid etc and line their own pockets. Corruption is rife. Read more »
If tonight’s Budget was all about the “Schoolkids”, they’d better enjoy their time in the playground while it lasts. Once they start working, there’ll be no gold watch at 65.
Faced with an ageing population, which will eventually struggle to support its top-heavy retirement class, this Budget set about encouraging even the quite elderly to stay in the workforce for as long as possible.
Up to now the greying of Australia has been presented as a looming crisis.
Continue reading "Generation Silver Service: work ‘til you drop" »
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Budz says:
@Jane: The higher income tax rates were to fund the Age Pension in the future? So you are saying the Government has billions of dollars stored away to pay this? You might want to tell them where you are hiding this money because they certainly aren’t aware of it. Read more »
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Tim says:
Ron, because you’re talking about apples for apples then you present one single anecdotal example. I’ve provided another anecdotal example that refutes yours and then linked to the data for the whole of Melbourne. I know which is more likely to be accurate. Read more »
Australian wage earners fear an economic winter during the northern hemisphere summer and are saving to protect themselves from what they believe could be another big global crunch.
Yesterday the financial markets were jolted by the elevation of anti-austerity parties in France and Greece in weekend elections and immediately took cover.
It was a rare moment of rational, ordinary Australians and occasionally irrational markets being in accord: You have got to defend yourself against countries not capable of looking after themselves.
Continue reading "Tonight is about the surplus, not leadership speculation" »
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Little Joe says:
7.50pm ..... where’s the budget Wayne!!! Read more »
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Maverick says:
taxing pollution? what C02 hahaha well if is pollution - stop breathing. the automobile did not get created by taxing the horse… Read more »
Labor’s recovery plan is simple and unexciting: delivering an unlikely Budget surplus.
Yet with a primary vote languishing in the mid-to-high 20 per cent range, this rather abstract financial goal is now the whole game - the political rock around which all else will be anchored.
The strategy assumes two inter-related things: first that Ms Gillard can hang on to the leadership and second, that an election is still 16 to 18 months away.
Continue reading "Surplus circus serves a purpose, on the surface." »
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sunny says:
@Aussie ‘smoke and mirrors’ - Labor is only playing by the rules that the Libs / Costello defined. And Queensland gets their $1Billion flood recovery money before start of next FY as a result. @Little Joe - Australia’s public debt is about 6% GDP. the avg. western economy’s public debt… Read more »
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Dr B S Goh, Australian in Asia says:
@ Little Joe Thanks for pointing this out. Now I understand why BHP invested in phosphate. The Greens in Australia under Dr B Brown and Gang have made a very serious strategic error by imposing the carbon tax on Australia. Now 70% or more of Australians are turned off Environmental… Read more »
That 2012-13 projected Budget surplus of just $1.5 billion is tea money in Australia’s $1.2 trillion economy. If someone in Treasury has a whip-around to feed the parking meters the Budget could end up back in deficit.
Well, not quite, but the existence of the surplus - should it actually come into reality - will be that perilous, and perhaps that transitory.
But the fact its existence is contemplated at all is remarkable in a global economy where many industrialised nations are on the brink of recession and would be delighted with even a manageable budget shortfall.
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Labor is Toxic says:
Over the past few years I have noticed the increased laziness of journalists. The simple regurgitation of what is fed to them by politicians. This appears to be what is witnessed in Malcom Farr’s “Any Surplus is a Good Surplus” When Wayne Swan claims to have a budget that will… Read more »
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Labor is Toxic says:
Over the past few years I have noticed the increased laziness of journalists. The simple regurgitation of what is fed to them by politicians. This appears to be what is witnessed in Malcom Farr’s “Any Surplus is a Good Surplus” When Wayne Swan claims to have a budget that will… Read more »
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