Budget Fallout – Have Your Say!

Treasurer Wayne Swan has delivered his 2009 Federal Budget.

Widely tipped to be a “horror” budget, there wasn’t really that much horror in it all.

Everything was largely as we expected – pensioners get a boost, taxation benefits associated with superannuation contributions will take a hit.

And the Government intends to spend a truckload on “nation building for the future”.

No sooner had Tony predicted that this would be a phrase that we can expect to hear a lot more of in the future, we had Wayne Swan standing in front of a banner loudly declaring “nation building for the future”

Joe Hockey was his usual apoplectic self, however managed to hit home with a couple of points that may register with anyone who hasn’t realised that we’re in the midst of a global financial crisis.

BUDGET SNAPSHOTS AT A GLANCE:

Deficit of $57.593 billion

Unemployment to hit 8.25 per cent – one million expected to be unemployed.

Economic Growth to fall to -0.5 per cent of GDP

Inflation to average 1.75 per cent

First Home Owners Boost continued for six months

Small Business and General Tax Break increased to 50 per cent for order this calendar year
Infrastructure spending to total $22b

$8.5b for road, rail and port
$4.5b on new clean energy initiative
$5.3b on tertiary education, research and innovation

$2.5b over five years to drive hospital and health workforce reform

$3.2b from Health and Hospitals Fund to modernise hospitals and and improve cancer facilities

Private health insurance rebate reduced for higher income earners

Medicare Levy Surcharge increased

$731m over five years for paid parental leave scheme

Pension age increased progressively to 67 years by 2023

Single Pensioners to get extra $32.49 per week, couples to get extra $10.14 per week

New $600 a year Carer Supplement for all Carer Payment recipients, plus allowance

Extra $650m in funding for border protection

So what do you make of it all ..? Are we all doomed to eternal debt, or is this Budget laying the foundations for a difficult but achievable path for future prosperity…?

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72 Responses

  1. Am I first?

    I hope I did not peak too early.

  2. Is snark allowed?

  3. who or what is snark?

  4. Wayne’s hair looks remarkably similar to Kevin Rudd’s

    I wonder if they share the same hairdryer?

  5. I think Wayne’s peaking a bit early Joni…

  6. Julia’s got the affirmation-nod thing going on.

  7. Julie and Kevin look like they’re at a funeral

  8. They’ll support 210,000 jobs. What about the rest of us?

  9. oooh “the third phase”

  10. metro road and railway in NSW? I’d like to see that!

  11. Julie’s doing the nod thing again.

  12. Good. Money for roads. That’ll piss-off the greenies.

  13. Broadband? Didn’t they already announce this?

  14. Does Turnbull have his back turned?

    Is Costello red in the face?

  15. Julia’s mum sewed a lovely violet binding on her lapels.

  16. Talcum and Hockey are chuckling here and there..

    I haven’t seen Costello yet.

  17. oh dear, people from disadvantaged backgrounds will be eligible for University placements.

    The Libs won’t like that..!

  18. on to parental leave – 18 weeks at the minimum wage..

  19. pensioners get $49 extra a week

  20. $32.49 for single pensioners. Good thing.

  21. Wow – that is good for pensioners

  22. $32.49 not $49 (I blame the wine)

  23. Oh Noes! They’re raisisng the age for old-age pension!

  24. Progressively – to 69.

  25. The Libs are getting a bit unruly…

  26. Nation Building for Recovery. Get ready to hear that slogan – a lot.

  27. Kevin’s doing the nodding thing now..

    oh and now it’s all over..

    now for the analysis..

  28. “Nation Building”

    Well spotted Tony. They’ve already got the banners printed!

  29. FHOG to continue as it is until mid-Sept, then halved to $10,500

  30. The ghostly trio aren’t buying it.

  31. Have I missed anything important?

  32. For the record I’d like everyone to know that I want to put the Bird of Paradox over my knee and spank that ample posterior of hers. I’d like to bring my massive hand crashing down on her creamy buttocks until they turn black, then blue and then purple. With each massive blow I’d like to watch those buttocks quiver – shaking like jelly on a plate. I’d like to leave welt marks as a form of branding; a statement if you will like “this property is under the ownership of Stephan”.

    Apart from that I am enjoying the budget speech but not nearly as much as the ACA story tonight on eyebrows. We’re getting 5 or 6 extra TV channels which looks like being a huge challenge for the creative departments. Gilligan’s Island anyone?

  33. LOL!

    And Joe Hockey’s up next. 🙄

    May God help us all..

    How many points for “Spending like a drunken sailor”?

  34. “Landscapers will be subject to a 30% hike in tax”

  35. Wayne’s on top form. One of his most convincing performances ever I reckon.

    three and half stars from me.

  36. Sacper – no you missed nothing. Two pages in the tabloids, max!

    Stephan – nice imagery there.

  37. I’ll take that pain standing on my wallet!

    Must be time for cookies and milk…

  38. Reb.

    On Swan’s performance:

    Delivery – 4 stars.

    Lack of sweat on the top lip – 4 1/2 stars.

    Script – 1 1/2 stars.

  39. Any backflips with double pikes?

  40. Tony,

    I bet Hockey doesn’t fare so well on the lack of sweat on the top lip

  41. Reb,

    A drink every time Hockey says: our children and our children’s children.

  42. He’s already perspiring!!

  43. (Will still be paying off the debt.)

  44. I’ll drink to that!

  45. Joe really is a complete tosser.

  46. Good point. More spenton cash handouts than infrastructure.

  47. “inter-generational debt”

    *sip*

  48. “a massive burden for generations”

    *sip*

  49. burden for generations *gyuzzle*

  50. Thank God that’s over!

  51. Any backflips with double pikes?

    But remember scaper, that the nasties are always hidden away as footnotes in cupboards under the back stairs.

  52. Well, that was fun. Try sending out a few invites next time, Reb.

  53. Yeah I will Tony.

    Thanks for joining me. It was just a last minute spur of the moment thing.

    It would’ve been lonely without you..!

  54. I think it was a good budget.

    Some people will naturally scream about the deficit, but so what. What’s the big deal? A deficit is a better option than a prolonged recession. If Swan had cancelled the broadband plan then there wouldn’t be a deficit. I’m glad he didn’t.

    Some people will scream because the govt is borrowing money. Again, what’s the big deal. We all borrow money: people, families, businesses. As soon as we borrow money to buy a car – for example – we are going into deficit, so what’s the difference.

    IMO, this budget will be looked back on one day as being very sound.

    BTW, Joe Hockey didn’t let me down – he’s still a complete goose.

  55. Hi Miglo,

    The broadband spend is being spread out, so it’s not clear that leaving out just this one measure would leave us in surplus:

    Supported by an initial investment of $4.7 billion,/a>, this will ensure our economy has a fast and efficient communications backbone for the 21st century.

  56. Hi Tony,

    My comments were rushed and my analogies are not well credentialed, but hopefully you get the gist of my message.

    Besides, I’m still pissed off with the way we lost on Saturday night to be too concerned with whiners over the budget. Port losing the way they did is far more important than the budget.

    When Swan said that millions upon millions were being injected into Ports my heart fluttered a bit because I though he meant Port Power.

  57. LOL.

    I fully understand, Miglo.

    I was waiting with bated breath for Wayne to mention any money for tigers, big cats, Punt Road, Richmond Station- anything.

  58. Fundamentally, the projected ‘deficit’ doesn’t come from projected and committed expenditure but from projected and real falls in revenue. The ‘deficit’, in simple terms, results from an inadequate income stream. (And no I won’t get into the fundamental reasons why).

    In hard economic terms it lacked a tough edge. Australia is in for a rough ride but the Budget doesn’t reflect that likely reality. Too optimistic, I suspect but then again, the horses have probably seen too much fornication in the streets.

  59. BTW Miglo,

    Have you caught the new NRL show? It’s all about Matty Johns and a ‘group’ of friends on a Kiwi ‘train’.

  60. From the previous thread:

    The government should spend the $4 billion providing labour intensive home improvement – garden mulching, painting, fixing the roof, guttering and/or insulation for example.

    I could go for that. Bit harder to administer, but that’s supposedly what governments are for.

  61. Haven’t had time to look at this budget yet, other than skimming this post.

    But I heard Malcolm Turnbull on the news this morning explicitly casting government borrowing and spending as equivalent to “reckless” household finances management – i.e. in bad times you cut back on household expenses. For someone apparently so well-versed in the finances, he’s either terribly ignorant about what governments need to do during downturns, or he’s hoping the public will buy his line of bulls**t. Neither option is a good look…

  62. Interestingly the proposed price hike of $2.50 on a pack of fags didn’t rate a mention….

  63. Bugger, I missed the blogocrat’s call of the action.

    Late flight back from Brisbane and I was inflicted with hearing Hockey on the radio when I got in the car. Tony, reckon you must groan in frustration every time he and Turnbull open their mouth because, quite frankly, they both suck as politicians. I’d hate to have them as the leaders of the party I support (which fortunately they don’t). Hockey was interviewed on ABC radio and actually ridiculed the spending on schools and refused to say what he would have done differently.

    I know how it must feel though, for the past 14 years or so, I’ve been pissed off most of the time politicians have opened their mouths (all persuasions). Groaning slightly less with Labor pollies at the the moment but sometimes it just ain’t pretty. Bring back Keating!!

  64. Lotharsson,

    Malcolm is actually quite correct regarding traditional behaviour of household financiers in tough times. (Witness current punters’ behaviours as further proofs.)

    Whether it’s fair to equate household spending with a federal budget – that’s another question.

  65. Sorry Dave,

    My fault. I only thought about the “live coverage” thing when I got home from work. Luckily Tony was here, or I would’ve just been talking amongst myself.

    I’ll give more notice in future (if I have the foresight)….

  66. Thanks but it wouldn’t have helped me reb, I was somewhere over the Gold Coast when it all started … On the plus side, the late flight out of Brisbane to Newie offers beer and wine 😀

  67. I’m not into NRL Tony. Despite what the rest of Australia might believe, AFL has a strong following in Canberra.

  68. Malcolm is actually quite correct regarding traditional behaviour of household financiers in tough times.

    Yes, I didn’t mean to imply that he wasn’t.

    But that wasn’t what he was advocating. He was clearly trying to say that governments should act like households and rein in spending (which generally causes a deeper downturn).

  69. Tony Jones has just accused Lindsay Tanner of using a form of the hockey stick graph. And he hasn’t denied it.

    In other words, the modelling they’ve used, for forecasting some spectacular growth figures, are using very rubbery figures from the treasury. In his own words, these methods are unprecedented.

  70. *in Tanner’s own words, these models are unprecedented*

  71. George Megalogenis:

    Megalo = large, big

    Genis = family

  72. All very Egyptian…7 years of feast, followed by 7 years of famine. On the graphing, Joni, perhaps what would have been preferable was a Pharaoh who understood the ebb and flow of history, and saved grain in the good times to expend on the pyramid-building in the not so good, to keep upper and lower kingdoms balanced and capable of different sorts of production across both sides of the macro-cycle in a different kind of win-win, over-unity game, and not a zero-sum game.

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