Stay Calm And Keep Shopping - Another Budget Thread

[icyfroth]

I decided I should read up on the budget so I could comment. Found this article explained it well:

Budget 2014: the six graphs that matter for Australia

This is a horror budget for many – but the cuts overall are not as bad as in the past and, surprisingly, leave Wayne Swan with the record for wielding the budget axe

"On the broader economic front the budget suggests 2014-15 will be worse than this year. While the economy in 2013-14 is expected to grow by 2.75% (a slightly conservative estimate given annualised growth in the last half of 2013, which was 2.9%), in 2014-15 it’s expected to just trudge along by a mere 2.5%. Only in 2015-16 is the economy expected get back to close to trend growth of 3%.

Why are they so gloomy? Well it’s not households. Household consumption has been revised up since the Myefo – from growth of 2.75% next year to now 3% and 3.25% in 2015-16.

So we’re expected to keep shopping.

The problem is the end of the mining boom. This budget really throws off any hope that mining might sustain us. In the pre-election economic and fiscal outlook (Pefo) done just prior to the 2013 election, business investment was expected to grow in 2013-14 by 2%. The Myefo revised that down to a fall of 1.5% and the budget has dumped it even further –estimating a fall of 4%."

"This was going to be a horror budget. And it is. If you are intending to go to university, if you are under 30 and unemployed, if you are a family with a child over 6, if you go to GPs, you’ll going to be hit hard.

Family tax benefits are frozen to save $2.5bn over four years, the threshold for Family Tax Benefit cut from $150,000 to $1000,000 will save $1.2bn, cutting it for families with kids over six saves $1.9bn and the $7 co-payment for GP visits gathers in $3,5bn. The increase in costs to uni students through the deregulation of fees, the cutting of funding to unis and the changes the HECS/HELP repayments $3.2bn

But the biggest individual “saving” is through not increasing foreign aid as promised. This saves $7.6bn and is easily the laziest save any government can do."

"Hockey is not rushing back to surplus. Yes he’s putting on the fiscal breaks, but not like Costello did in 1996 to 1999, nor even like Keating did after the “banana republic” crisis in the late 1980s.

The budget deficit will shrink by on average 0.7% of GDP over the next four years. Costello trimmed it by 1% of GDP when he came in –but he was able to rely on much more revenue growth than Hockey.

Spending is expected to be cut each year by on average 0.3% over the next four years. Costello’s cuts to expenditure were double that."

Entire Article Here

Those baying for Hockey's blood should do a bit of back-reading.

[freakiness]

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@*elizabeths-mum* wrote:
The new budget hasn't really affected my husband and myself personally. It will affect our youngest child who is starting uni soon and won't be finished before the deregulation comes in. My biggest concerns are the extra stresses it will put people under who are in the categories likely to be affected. Even in laid back regional Queensland I've seen changes in society reflecting the pressured lifestyle so common in the capital cities.

It annoys the heck out of me that Joe can state and, I think honestly believe, that people like him will be feeling the pain because they are paying an extra 2% tax on their income above $180 000 and won't be getting (another) wage rise for a couple of years.

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In Joe's world being in the North Shore real estate business is doing it tough.

It's no wonder his perception is a bit warped.

[bluecat*dancing]

Shopping, except for essentials, will be severely curtailed for me because, if the budget passes the senate, I'll have to factor in extra money for dr visits and the ensuing tests. It is difficult enough as it is.

[cq_tech]

[spotweldersfriend]

You should probably add another 100,000 to that number of unemployed youth.That's how many would be working from 4-20 hours per week that aren't counted and yet still receive part payment from the government.This budget doesn't exactly inspire consumer confidence does it? Those part timers will be the first to get laid off if the general public starts tightening its belt even further.

[cherry*135]

Yes, very true, spot.

[purplecarrot-top]

The only shopping I do is for essentials mainly. Might buy the odd markdown piece of clothing.

[boris1gary]

and it's already in the media how those on over $180,000 can use a taxation loophole to avoid the tax.

[lloydslights]

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@boris1gary wrote:

and it's already in the media how those on over $180,000 can use a taxation loophole to avoid the tax.

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Perhaps they, that earn over $180,000 are able to afford a Financial Advisor of the calibre required to minimize their tax "burden".

I seem to remember Mr Packer in some sort of enquiry replying to a question regarding his minimal tax payments, his response being along the lines "I pay him enough to find the loopholes."

DEB

[*elizabeths-mum*]

I don't understand why people have such an aversion to paying tax, especially those with large incomes.

Raising the tax free threshold would have reduced tax payments significantly I would imagine, but it was due for a rise. How long had it sat at $6000 while wages went up?

[silverfaun]

Thanks for posting that but the confected outrage has nothing to do with the budget or the wellbeing of our country and the future of our country and if we can sustain the health and education of the people, it's all about the disappointed.

The phony outrage spouted by Shorten is ludicrous along with the rest of them,  it's transparent and nobody can take them seriously, only the rusteds and their ilk.