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Wednesday, 08 October 2008

Swan unveils record surplus… but he still needs to sell it

14/05/2008 6:30:00 AM.  | Michael Cavanagh

Reputations on both sides of the political divide now hinge on the Budget, the first by Labor in 13 years.

For the government it is whether it has been able to live up to the claim by Prime Minister Kevin Rudd and Treasurer Wayne Swan that they are economic conservatives.

For the Opposition - and in particular leader Brendan Nelson – how he takes the fight to the government will play a major role in his future.

Some of his colleagues recently stated that the time to assess the party’s direction would be when the Budget was delivered.

For the government the phrase ‘working families’ has been used whenever the budget has been discussed and with means-testing and a tax crackdown, the well-off are the ones which will find the budget hard to swallow.

From the first of January the baby bonus will be limited to families with an annual income under $150,000.

There are also tax breaks in education aimed at helping families meet the costs of their children’s schooling

The family tax benefit part B will also be means-tested.

"The government does not believe hard-earned tax dollars are best spent on tax payments to the wealthiest Australians," Mr Swan said in delivering his Budget.

"It is simply not defensible."

There’s an increase in the child care rebate from 30 per cent to 50 per cent.

And as expected those at the upper end of the income scale will be paying more if they want a luxury car with tax going from 25 per cent to 33 per cent.

Fringe Benefits Tax is also going to be tightened.

The promised tax cuts will mean an average income earner on around around $50,000 per year will be just under $20 a week better off.

The cuts are part of the $55 billion working families support package.

They have been the centre of the government’s election promises - despite critics arguing that they will only fuel inflation. And it’s inflation which the government has continually stated is what needs to be tackled or unemployment will rise along with interest rates.

With a budget surplus of $21.7 billion, Mr Swan defended the $7.3 billion spending cuts, claiming that there was the danger of slowing the economy too much.

During the budget lead-up, the Prime Minister claimed the budget would not be a one year wonder.

It was a budget which was part of “a new era of strategic investment in Australia’s future challenges”, the Treasurer stated in his speech to parliament.

This includes three investment funds which will have $40 billion poured into them as capital investment for infrastructure, health and education.

Shadow Treasurer Malcolm Turnbull has labelled the budget as “big spending, big taxing.’

While Dr Nelson claims it “targets people that it (Labor) doesn’t like…It’s a budget which does nothing for Australian families…”

How the central players react to the fallout in the days ahead will be crucial to both sides of politics.

COMMENTS

Wednesday, 14 May 2008

Well 10 points to Swam for being a fool. Textbook Labor economics. Soak the rich and stuff the worker. He has learnt nothing, he is a dinosaur from the Keating, Hawk past. So the rich stop spending, and they stop hiring and buying expensive toys and unemployemnt goes out of control ,and interest rates go up, and inflation because Rudd and Swan have scared the economy into negative territory. The bulls have bolted. Maybe Delemma can give them some advise how to a waste money.

Posted by: Andy Mac, Singapore

 

Wednesday, 14 May 2008

He has failed on each and every point that Rudd said he would judge himself by at the last election. He is pro inflationary. He will make houses, petrol and food less affordable, while limiting wages. He has depressed investment, increased the tax take and shifted the blame of health to the states. Even the new funds announced will actually only funnel money to mates. This isn't a budget, it is a shame.

Posted by: In Evah Tah Ball, Carramar/Sydney

 

Wednesday, 14 May 2008

Michael Cavanagh - Your headline 'Swan unveils record surplus' seems to be designed to give all the credit to the Labor Government for the size of the surplus. I am sure you are aware that this is a gross exaggeration. If you want to give Labor all the credit for the positives why not have a story about inflation with the heading 'Inflation reaches a 16 year high under Rudd and Swan'. Now that would be balanced reporting.

Posted by: Desmond Harris, Beacon Hill

 

Sunday, 18 May 2008

The constant waving of 8 fingers and two thumbs by Rudd and company is a source of irritation and downright hypocrisy to me. Ten increases of interest at .25% equals 2.5%. On the 21st October 1987 a small paragraph appeared in the "West Australian" noting that "Interest rates increased by 2.5% today to a total of 13.8%".The Labor Party was in power and Keating was the "Worlds best treasurer"---Need I say more ?.

Posted by: David Cocks, Busselton

 
 

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