Federal Budget 2014

[Guest BurgessFamily]

Tomorrow is the big day! Hope it's not all doom and gloom, and they have some nice surprises for us.

 

"The main budget savings are likely to be a phased cut in the income threshold for family benefits from $150,000 to $100,000; tougher means testing for the pension; co-payments for GP visits; a further shrinkage of the public sector; the resumption of fuel excise indexation; a temporary 2 per cent increase in the top marginal tax rate which kicks in at $180,000; moves to increase the cost of higher education; a further increase in the pension age to 70 by 2035; and a possible delay in the start-up of the National Disability Insurance Scheme."

 

Some of the public service's worst nightmares are starting to come true with reports of 16,000 public service jobs to be slashed and 70-plus government agencies to be merged or abolished in Tuesday's federal budget as part of Tony Abbott's move toward smaller government.

[Guest Claire-n-tel]

Hope it's not all doom and gloom, and they have some nice surprises for us.

:biglaugh::biglaugh::biglaugh::biglaugh::biglaugh:

Sorry, couldn't help myself!

[emmie]

I wonder if Abbott and his sycophants will have to work until they are 70. Australia, the Nasty Country.

[sidestep]

Hope it's not all doom and gloom, and they have some nice surprises for us.

There'll be surprises alright. Mostly to do with the increased taxation that was promised would not happen.

[the fishers]

HMMMMMM it will most certainly be doom and gloom. Cannot believe Abbott and the Muppett Show are actually in charge of our amazing country. Lets hope government job cuts will include the PM job lol. My husband and I both work in health and rely heavily on shift loading to bump up our fortnightly wages... if rumours are true TA and his crew would like to do away with such shift pay etc. Im not sure anyone will want to work xmas day, easter sunday, Australia Day etc etc without some sort of financial compensation.. Fingers Crossed this doesnt happen !!!

[Diane]

From a post on FB...

Tomorrow, hundreds of conservative lobbyists, industrialists, interest groups and the party faithful will raise a toast to a budget built on lies.

 

It will be built on the lie that our world-beating economy is in the grasp of a 'budget emergency'. One that can only be remedied by a shift away from Australia's once proud ideals of fairness and equity in health, education and pensions.

It will be built on the lies of pre-election promises that there would be no big cuts, no new taxes, no changes to pensions and no suprises.

Our only hope is that more people wake to the fact that Tony Abbott and his government are liars that want to make the lives of pensioners, battlers, students and working people a little tougher so the they can make their mates a little wealthier.

Not in our name. Enjoy your budget speech Smokin'Joe. It'll be one of your last.

 

We can only hope.....

[Anne B]

Although it is wise not to get too much into debt, some of the rhetoric about this huge government deficit is exaggerated and just scare-mongering. They are using it as a good excuse to push forward an ideological program of cutting welfare dependancy and targetting sectors that they don't support. If you look at the OECD figures on government deficit as a percentage of GDP, Australia really isn't too bad compared to other countries. It's not good but it's not the worst, and has already fallen quite a bit since 2009/2010 (under Labor). Taking the 2013 figures (on the basis that 2014 isn't even half way through yet) Australia's deficit is 2.4%, UK 6.9%, USA 6.5%, Japan 10% see here http://www.oecd-ilibrary.org/economics/government-deficit_gov-dfct-table-en.

[GarethB]

Not a fan of the man himself but some of these proposed changes are much needed. Any newbies here will be amazed by the generosity of FTB A & B and lower taxation than the UK. As for targeting welfare, as in the UK there are far too many bludgers that simply don't want to work, very different from those who cannot due to age or disability . Having lived in regional SA for 4 years and now back in Adelaide for the past 3 its very sad that unskilled workers need to be brought in to the jobs the locals don't want to do (eg harvesting & dairy farming) whilst the commodore equipped young male sits at home smoking and drinking all day. That may be a stereotype but one that's prevalent north & south Adelaide and regional cities like Mt Gambier/Murray Bridge.

I still find it a positive thought that 2 adults on min wage (F/T), lets say $67K PA combined before tax, here can afford to rent a decent size house, own a car(s), live, eat and have access to amazing hospitals, parks, libraries, beaches, cheap petrol etc etc etc. Compare that to the UK scenario of combined income of 27K pounds, petrol double, extortionate parking for the few "free" places to go, and living in a shoebox, then having to pay a license fee to watch the box because eating out is prob not an option. On a positive you won't be charges $10 for a pint of Guinness........maybe the UK does have something to offer?

 

Yes overall cost of living is higher here but the far higher wages and lower taxes more than make up for this. No need for the country to live beyond it's means when people just need a reality check, especially the natives who wouldn't have experienced what most of us have in the UK.

 

Rant over thanks for reading

[Guest Guest12727]

Good post GarethB. What concerns me is the anticipated cuts to health care, education, all the other public services they are cutting and worst of all slowing down the introduction of NDIS. DISGUSTING

 

If they stopped focusing on undoing everything labor put in place and instead tackled some issues with their own ideas, I may be more tolerant of them. A lot of their proposed cuts and new charges are very shortsighted. Even Clive Palmer is starting to sound sensible.

 

If they do fiddle with NDIS my local member, that ferret Chris Pyne, will be getting a letter from me.

[Guest BurgessFamily]

Problem is Labor spends too much and Libs cut too much. Can't win.

[GarethB]

Joe Hockey you're a legend! Don't need to bring back Maggie now....

[Guest BurgessFamily]

Is Australia going to be too expensive now?

[Rabeah]

This budget is completely over the point, I don't see Australia been in a financial crisis in comparison to European countries.

 

Now students, families, commuters with cars and pensioners start saving more to compensate all the nasty things which means a cycle of less spending, economical downturn and again escalating supermarket prices for everyone thanks to the fuel excise replacing the Carbon Tax.

[srg73]

Rabeah, Europe is a dying continent with the EU trying to over govern with their idealist left wing approach to everything. Asia is a growing continent (yes im old fashion and consider Australia as part of Asia) with Australia having natural resources, a young and well qualified population and finally quite a conservative approach to most things. America is bankrupt with a very short sighted boost currently being experienced and China, wow they have a debt which is scary however their government has firm control and is aiming for a soft landing rather than the big bump UK and Europe experienced.

 

The budget seems to be mid sighted with investment being targeted which is good (not following the USA in allowing infrastructure to rot) and unfortunately acknowledges that we are putting additional stress on health and welfare facilities meaning they have got to become more expensive to all.

 

In UK where I am just at the moment, taxes are rising although not directly but everything remains stubbornly expensive with take home wages becoming less and less in real terms and less to look forward to in retirement. We don't have kids however if we did then I would be concerned for their futures in UK. Nope Australia although expensive and likely to become more expensive is the country for us to try and fingers crossed become our permanent home as at least Australia seems to have a more optimistic future.

 

S

[Guest BurgessFamily]

You missed that MP aren't going to get a pay rise this year, and will lose their gold cards... I feel for them, i really do..n't.

 

As for Asia... they have big problems of their own... rising wages and rising living standards (or expectations thereof). The Chinese government is under major pressure, but their state media hasn't really covered it (people are not happy with major corruption from government). Why do I care about China? ...cause the Australian economy depends on it.

 

As for having kids... if they get an ear infection (or some other ailment)... $7 to see GP + $14 prescription for starters. I'm wondering how that sort of thing compares to the UK now? Not even going to get into dental issues.

Edited May 14, 2014 by BurgessFamily

[Diane]

I am of the school of thought that thinks if you make the decision to have kids, you should really try and be sure you can afford them, and so if taking one to the doctors costs money, then you find the money. However, even on a fairly reasonable income, I don't go myself, and don't have tests myself if they are going to cost as I'd rather keep the money in reserve for the kids if they need it, and for someone on the aged pension, who perhaps doesn't own their own home, this is going to hit hard and I can see many putting off going until their health has really suffered. I don't know about the rest of Australia, but here in Adelaide the job market is pretty awful - and as someone whose OH is due to be out of work from the end of this week, I DO know what I am talking about! Increased petrol prices will have knock-on effects on everything, prices of groceries etc, and UK visitors already comment on how very expensive Australia is these days. If you are earning good money in a secure job, with no kids who will suffer from the cuts in education, and if you are religious so feel a school chaplain is a good investment for the country to make, and think everyone claiming benefits is a druggie scrounger who has never worked a day in their lives, then you may look on this budget favourably. For us ordinary people though who just want to be able to work in a job that enables us to feed, clothe and educate our families...hmmm, maybe not so great!

[Diane]

You missed that MP aren't going to get a pay rise this year, and will lose their gold cards... I feel for them, i really do..n't.

 

So this rise in July isn't happening any more then? http://www.canberratimes.com.au/act-news/canberra-politicians-win-7500-a-year-pay-rise-20140502-zr2zk.html

[srg73]

You missed that MP aren't going to get a pay rise this year, and will lose their gold cards... I feel for them, i really do..n't.

 

As for Asia... they have big problems of their own... rising wages and rising living standards (or expectations thereof). The Chinese government is under major pressure, but their state media hasn't really covered it (people are not happy with major corruption from government). Why do I care about China? ...cause the Australian economy depends on it.

 

As for having kids... if they get an ear infection (or some other ailment)... $7 to see GP + $14 prescription for starters. I'm wondering how that sort of thing compares to the UK now? Not even going to get into dental issues.

 

China, yes agree, my brother and his family live in HK and he reports that there is pressure on wages, living standards etc. Guess what? people of China and other developing countries want to live like us in the developed world and they are catching up very quickly. Where most of the developed world is wrapped up in unsustainable debt, very soon the developing world will overtake the established countries.

 

Cost of living, UK -= very expensive in fact Europe = expensive. GP, free to see although circa 2 week waiting time at the moment (they are paid circa £110,000 for a diabolical service thanks to Labour allowing GP's to set their own budgets). Prescription circa £8 for each item. Dentist, wow, NHS lists are pretty much closed meaning private only at circa £60/consult and a lot more if work required, eg family member had to cough up circa £2,500 for 2x front tooth caps!

 

S

Edited May 14, 2014 by srg73

[Meadows]

Hi Diane

 

I do agree with you.

My family now has the double whammy, my husband is a 68 year old self funded retiree (in receipt of UK pension) who has now lost

his Seniors Supplement and will be liable for tax on his UK pension. Our 22 year old son who has been looking for work since Dec 13 despite having 5 Cert 2s from TAFE in various trade skills, he will have his benefit reduced significantly, and once he is unemployed for 6 months-his benefit will stop. He continues looking for an apprenticeship. In Dec 13 when he first signed on- there were 5-6 job adverts per week for apprentices, nowadays it is not unusual for there to 1-2 per week in trade skills.

He is not a dole bludger and his friends who are also looking for work are not dole bludgers either. They are just an easy target for politicians who enjoy the sort of salary and perks that the rest of working public can only dream about.

[Guest BurgessFamily]

Hi Diane, yes I agree that having kids should be fully planned out and costed beforehand.

 

My other thought though, and this is a general thought, is that any child born is 40 yrs + of future tax paying in the bank for the government, so the government should make sure they stick around.

 

Personally, this budget won't really impact but I do see the bigger picture.

[Guest Guest12727]

Try this calculator to see if you win or lose (not vouching for its accuracy).

According to this we will be about $1600 worse off.

 

http://www.adelaidenow.com.au/news/tony-abbott-flags-early-election-if-senate-changes-key-budget-measures/story-fni6uok5-1226918057038?utm_source=The%20Advertiser&utm_medium=email&utm_campaign=editorial&net_sub_uid=77655095

 

PS scroll down until you see the map of Australia to begin

 

BTW - don't you love Abbott's veiled threats in the article.

Edited May 15, 2014 by Guest12727

[Guest BurgessFamily]

As I suspected, we are not really impacted immediately by this budget. Overtime though it could erode our living standards (as with many others).

 

People with kids should pay their way, and in the same respect those who choose not to have them shouldn't expect much support from future tax payers.

 

The main lessons I have learned, Australia doesn't like single income families, and any 'child benefit' is going to be evaporating very soon (with children expected to pay their way). Good job I'm only here for the weather.

 

Edited May 15, 2014 by BurgessFamily

[Guest BurgessFamily]

Of course, I haven't considered any GST hike/expansion, which is looking very likely now.