I'll be interested to see the transport projects that are on the cards.
Budget 07
It's an election year alright.
http://www.theage.com.au/articles/2007/05/08/1178390301146.html?page=fullpage#contentSwap1
Budget aims at battlers
Leon Gettler
May 8, 2007 - 7:32PM
Treasurer delivers an election year budget aimed at the battlers, the elderly and middle Australia
* Budget surplus of $10.6 billion
* $31.5 billion in tax cuts over four years
* Low income tax offset to increase to $750 per year
* 40 per cent threshold to rise to $80,000 from July 2008
* $22.3 billion over five years from 2009-10 for road and rail infrastructure
* Child care benefit to increase by 10 per cent.
* Doubling of rebates for household solar panels to $8000
* $10 billion over 10 years to safeguard water supply
* $5 billion grant for universities
* $3.5 billion to promote 'flexibility and diversity' in higher education
* $6.1 billion over 10 years for defence personnel recruitment and retention
Treasurer Peter Costello has delivered an election year budget aimed at the battlers, the elderly and middle Australia with $31.5 billion tax cuts with those on incomes up to $30,000 getting more money from July 1.
To prevent blue collar battlers affected by WorkChoices defecting to Labor, the first tax cuts will flow to those on incomes of up to $30,000. In July, the 30 per cent threshold will be raised from $25,000 to $30,000. The tax rate for those earning up to that amount will drop to 15 per cent. According to the Budget papers, more than 80 per cent of taxpayers will be on a marginal rate of 30 per cent of less.
''The low income tax offset will also rise from $600 to $750 and will begin to phase out from $30,000. This means that low income earners eligible for the offset will not pay tax until their annual income exceeds $11,000,'' Mr Costello said.
''For a person on average wages the tax cut I announce tonight will be around $16 a week. For those below it can be more, for example, at $30,000 the tax cut will be $21 a week. These tax changes provide further incentives for those out side the workforce to enter it and for those in part time work to take additional hours.''
In another gift to low income earners, the Government will pay an additional one-off bonus to double the superannuation co-contribution for 2005-06. ''This means an eligible person who contributed $1,000 will receive a co contribution of $3,000 from the Government for that year,'' Mr Costello said.
But the biggest dollar gains will be for those in the middle and the top. They just need to wait. From July next year, the 40 per cent threshold will be raised to $80,000. And the 45 per cent threshold is stretched out from $150,000 to $180,000, ensuring that people earning up to $180,000 will have more money in their pockets. It also means that only 2 per cent of taxpayers will be on a marginal tax rate of 45 per cent, and they will not get there until they earn more than three and a half times average weekly earnings.
However, by deferring the tax benefit, the Government is shrewdly allaying Reserve Bank concerns about an inflationary budget while at the same time wooing voters with an attractive tax break further down the track.
To pay for all this, the Government has delivered a lower-than-expected surplus of $10.6 billion, the lowest since the last election four years ago. The extra spending put into the economy will the equivalent of 0.3 per cent of gross domestic product (GDP).
And with global warming and education shaping up as election issues, the Federal Budget has provided for $741 million in climate change change initiatives and a special investment pool to help universities pay for capital works and research.
To boost its green credentials, the Government's environment package allocates $150 million over five years which will include the doubling to $8000 of rebates for homeowners installing solar panels. It also includes $197 million over five years for the Global Initiative on Forests and Climate to improve the management of forests in developing countries, and the $126 million over five years to establish the Australian Centre for Climate Change Adaptation which will do research into global warming's impact on Australia.
In education, it will establish a $5 billion Higher Education Endowment Fund (HEEF) which is effectively be a giant pool of money. It will be invested to earn the money to pay for capital works and research at universities. According to the Budget papers, the money will be distributed to universities by the Minister for Education ''on a competitive basis''.
''The Government has allocated $549 million to try and tackle Australia's skills shortage. It will top up the wages of 228,000 apprentices around the country with a tax exempt payment of $1000 in six monthly instalments during the first and second years of the apprenticeship. They will also receive a $500 voucher to help pay their course fees.
A $10 billion National Plan for Water Security will aim to place rural water use on a sustainable footing over the next decade. The blueprint includes $5.9 billion to increase the efficiency of water use in irrigation and $3.1 billion to address over allocation of water. The Government will also provide $201 million over six years to help schools and community organisations install water tanks and other water saving devices.
''As a sweetener to older Australians, the Government has announced a one-off bonus of $500 for people eligible for either the Utilities Allowance or the Seniors Concession Allowance from the end of June. In the case of a couple where both are eligible, each gets the bonus. The payments are worth $1.3 billion.
''Recipients of the Carer Payment will get an extra $1000 bonus while those on the Carer Allowance get a $600 bonus. Carers will get the money by June 30.
''These payments will be tax free and not treated as income when calculating social security payments,'' Mr Costello said.
''These measures will cost $1.7 billion in 2006 07. These bonuses show we can extend the benefits of a strong economy to those outside the workforce. It recognises the contribution older Australians have made to building our economy. It lends a helping hand to our carers.''
More than 700,000 families will get 10 per cent more in child care benefits from July 1.
In the area of health care, the Government has announced Medicare rebates for dental treatment of up to $2125 per year.
theage.com.au
_____________________
http://www.theage.com.au/news/business/a-budget-to-win-an-election/2007/05/08/1178390300734.html
A budget to win an election
Leon Gettler
May 8, 2007 - 7:42PM
This is the Budget that aims to reverse the Howard Government's poll deficit, lure back the disillusioned battlers, neutralise the potential backlash from WorkChoices and boost its lowly green credentials.
For the last two years, the Treasurer Mr Costello has virtually made no mention of education in his Budget speech. Last year, there was a paltry $96 million boost for universities' capital spending. In the largesse of the 2006 Budget's generous tax cuts and superannuation give-aways, education was missing out.
But that was then, this is now.
With Labor leader Kevin Rudd campaigning on his "education revolution", promising to prioritise literacy and numeracy and looking to turn education into an election issue, the Howard Government's big ticket item this time around is the $5 billion Higher Education Endowment Fund, an investment pool that will earn money to be allocated by the Minister for Education to help them pay for their capital costs. The other important part of this initiative is that it is aimed squarely at Labor's territory of education.
At last month's ALP conference, Mr Rudd announced a $300 million plan to allow 200,000 Australian households to apply for loans of up to $10,000 for energy, water and solar efficiency projects.
In response, the Government tonight announced that it will double the rebate - as opposed to a loan which you have to pay back - to create greener homes. Households around Australia will receive up to $8,000 for installing solar panels. And with the average solar panel system costing around $14,000, that amounts to a rebate of over 50 per cent. Big savings in gas and electricity and potentially, even bigger savings in votes.
But the big vote catcher is the line-up of tax cuts. First off are the cuts aimed at winning back the people the Government might have lost through WorkChoices. They are aimed squarely at the middle to low-income earners and families, the Howard "battlers", the constituency that has kept the Prime Minister in power for 11 years. They're the ones who will be taking home more money from July 1.
There are tax cuts for voters in the middle at top too. The changes to their tax thresholds have been deferred until 2008. But a Budget full of give-aways, putting them on a promise aims to assuage concerns about the Government being irresponsible and paving the way for another rate rise.
This Budget is designed to lure back voters and win elections.
theage.com.au
http://www.theage.com.au/articles/2007/05/08/1178390301146.html?page=fullpage#contentSwap1
Budget aims at battlers
Leon Gettler
May 8, 2007 - 7:32PM
Treasurer delivers an election year budget aimed at the battlers, the elderly and middle Australia
* Budget surplus of $10.6 billion
* $31.5 billion in tax cuts over four years
* Low income tax offset to increase to $750 per year
* 40 per cent threshold to rise to $80,000 from July 2008
* $22.3 billion over five years from 2009-10 for road and rail infrastructure
* Child care benefit to increase by 10 per cent.
* Doubling of rebates for household solar panels to $8000
* $10 billion over 10 years to safeguard water supply
* $5 billion grant for universities
* $3.5 billion to promote 'flexibility and diversity' in higher education
* $6.1 billion over 10 years for defence personnel recruitment and retention
Treasurer Peter Costello has delivered an election year budget aimed at the battlers, the elderly and middle Australia with $31.5 billion tax cuts with those on incomes up to $30,000 getting more money from July 1.
To prevent blue collar battlers affected by WorkChoices defecting to Labor, the first tax cuts will flow to those on incomes of up to $30,000. In July, the 30 per cent threshold will be raised from $25,000 to $30,000. The tax rate for those earning up to that amount will drop to 15 per cent. According to the Budget papers, more than 80 per cent of taxpayers will be on a marginal rate of 30 per cent of less.
''The low income tax offset will also rise from $600 to $750 and will begin to phase out from $30,000. This means that low income earners eligible for the offset will not pay tax until their annual income exceeds $11,000,'' Mr Costello said.
''For a person on average wages the tax cut I announce tonight will be around $16 a week. For those below it can be more, for example, at $30,000 the tax cut will be $21 a week. These tax changes provide further incentives for those out side the workforce to enter it and for those in part time work to take additional hours.''
In another gift to low income earners, the Government will pay an additional one-off bonus to double the superannuation co-contribution for 2005-06. ''This means an eligible person who contributed $1,000 will receive a co contribution of $3,000 from the Government for that year,'' Mr Costello said.
But the biggest dollar gains will be for those in the middle and the top. They just need to wait. From July next year, the 40 per cent threshold will be raised to $80,000. And the 45 per cent threshold is stretched out from $150,000 to $180,000, ensuring that people earning up to $180,000 will have more money in their pockets. It also means that only 2 per cent of taxpayers will be on a marginal tax rate of 45 per cent, and they will not get there until they earn more than three and a half times average weekly earnings.
However, by deferring the tax benefit, the Government is shrewdly allaying Reserve Bank concerns about an inflationary budget while at the same time wooing voters with an attractive tax break further down the track.
To pay for all this, the Government has delivered a lower-than-expected surplus of $10.6 billion, the lowest since the last election four years ago. The extra spending put into the economy will the equivalent of 0.3 per cent of gross domestic product (GDP).
And with global warming and education shaping up as election issues, the Federal Budget has provided for $741 million in climate change change initiatives and a special investment pool to help universities pay for capital works and research.
To boost its green credentials, the Government's environment package allocates $150 million over five years which will include the doubling to $8000 of rebates for homeowners installing solar panels. It also includes $197 million over five years for the Global Initiative on Forests and Climate to improve the management of forests in developing countries, and the $126 million over five years to establish the Australian Centre for Climate Change Adaptation which will do research into global warming's impact on Australia.
In education, it will establish a $5 billion Higher Education Endowment Fund (HEEF) which is effectively be a giant pool of money. It will be invested to earn the money to pay for capital works and research at universities. According to the Budget papers, the money will be distributed to universities by the Minister for Education ''on a competitive basis''.
''The Government has allocated $549 million to try and tackle Australia's skills shortage. It will top up the wages of 228,000 apprentices around the country with a tax exempt payment of $1000 in six monthly instalments during the first and second years of the apprenticeship. They will also receive a $500 voucher to help pay their course fees.
A $10 billion National Plan for Water Security will aim to place rural water use on a sustainable footing over the next decade. The blueprint includes $5.9 billion to increase the efficiency of water use in irrigation and $3.1 billion to address over allocation of water. The Government will also provide $201 million over six years to help schools and community organisations install water tanks and other water saving devices.
''As a sweetener to older Australians, the Government has announced a one-off bonus of $500 for people eligible for either the Utilities Allowance or the Seniors Concession Allowance from the end of June. In the case of a couple where both are eligible, each gets the bonus. The payments are worth $1.3 billion.
''Recipients of the Carer Payment will get an extra $1000 bonus while those on the Carer Allowance get a $600 bonus. Carers will get the money by June 30.
''These payments will be tax free and not treated as income when calculating social security payments,'' Mr Costello said.
''These measures will cost $1.7 billion in 2006 07. These bonuses show we can extend the benefits of a strong economy to those outside the workforce. It recognises the contribution older Australians have made to building our economy. It lends a helping hand to our carers.''
More than 700,000 families will get 10 per cent more in child care benefits from July 1.
In the area of health care, the Government has announced Medicare rebates for dental treatment of up to $2125 per year.
theage.com.au
_____________________
http://www.theage.com.au/news/business/a-budget-to-win-an-election/2007/05/08/1178390300734.html
A budget to win an election
Leon Gettler
May 8, 2007 - 7:42PM
This is the Budget that aims to reverse the Howard Government's poll deficit, lure back the disillusioned battlers, neutralise the potential backlash from WorkChoices and boost its lowly green credentials.
For the last two years, the Treasurer Mr Costello has virtually made no mention of education in his Budget speech. Last year, there was a paltry $96 million boost for universities' capital spending. In the largesse of the 2006 Budget's generous tax cuts and superannuation give-aways, education was missing out.
But that was then, this is now.
With Labor leader Kevin Rudd campaigning on his "education revolution", promising to prioritise literacy and numeracy and looking to turn education into an election issue, the Howard Government's big ticket item this time around is the $5 billion Higher Education Endowment Fund, an investment pool that will earn money to be allocated by the Minister for Education to help them pay for their capital costs. The other important part of this initiative is that it is aimed squarely at Labor's territory of education.
At last month's ALP conference, Mr Rudd announced a $300 million plan to allow 200,000 Australian households to apply for loans of up to $10,000 for energy, water and solar efficiency projects.
In response, the Government tonight announced that it will double the rebate - as opposed to a loan which you have to pay back - to create greener homes. Households around Australia will receive up to $8,000 for installing solar panels. And with the average solar panel system costing around $14,000, that amounts to a rebate of over 50 per cent. Big savings in gas and electricity and potentially, even bigger savings in votes.
But the big vote catcher is the line-up of tax cuts. First off are the cuts aimed at winning back the people the Government might have lost through WorkChoices. They are aimed squarely at the middle to low-income earners and families, the Howard "battlers", the constituency that has kept the Prime Minister in power for 11 years. They're the ones who will be taking home more money from July 1.
There are tax cuts for voters in the middle at top too. The changes to their tax thresholds have been deferred until 2008. But a Budget full of give-aways, putting them on a promise aims to assuage concerns about the Government being irresponsible and paving the way for another rate rise.
This Budget is designed to lure back voters and win elections.
theage.com.au
1 - 20 of 101 Posts
Why tax cuts to give people an extra 20 bucks a week? I'd rather see the money properly invested in public infrastructure. Oh well
Completion of expressway thru shepperton perhaps?
That's a state government responsibility.Completion of expressway thru shepperton perhaps?
what education? What about more quality lecturers or decreasing the student/teacher ratio? Or decreasing HECS fees.
NOW THE FULL PAY STUDENTS FEES ARE UNCAPPED!
1996: 2% of GDP went into education. After budget, it's only 1.6%
The solar panel subsidy is nothing new as well. They decreased the subsidy some time ago, and now just popped it up to $8000.
NOW THE FULL PAY STUDENTS FEES ARE UNCAPPED!
1996: 2% of GDP went into education. After budget, it's only 1.6%
The solar panel subsidy is nothing new as well. They decreased the subsidy some time ago, and now just popped it up to $8000.
Face up to it, Miliux, it is an outstanding budget. Not like the bad old days of Keating's horror budgets when the govt. put up things like excise on beer, wine, cigarettes, petrol, increased income tax rates, etc. Gee, I'm glad that dude isn't running the economy anymore.what education? What about more quality lecturers or decreasing the student/teacher ratio? Or decreasing HECS fees.
NOW THE FULL PAY STUDENTS FEES ARE UNCAPPED!
1996: 2% of GDP went into education. After budget, it's only 1.6%
The solar panel subsidy is nothing new as well. They decreased the subsidy some time ago, and now just popped it up to $8000.
the irony is, that this government is the highest taxing government in Australia's history.Face up to it, Miliux, it is an outstanding budget. Not like the bad old days of Keating's horror budgets when the govt. put up things like excise on beer, wine, cigarettes, petrol, increased income tax rates, etc. Gee, I'm glad that dude isn't running the economy anymore.
Guess where most of the revenue comes from? Banks who profiteered from mortgages and other loan packages. Australia keeps on borrowing.
It's the highest taxing govt in the history of Australia because the economy is the largest in the history of Australia. It's a much bigger cake today.the irony is, that this government is the highest taxing government in Australia's history.
Guess where most of the revenue comes from? Banks who profiteered from mortgages and other loan packages. Australia keeps on borrowing.
really? give me the % of fiscal spending vs GDP. I'm pretty sure it's right up there.It's the highest taxing govt in the history of Australia because the economy is the largest in the history of Australia. It's a much bigger cake today.
http://www.treasury.gov.au/documents/1239/HTML/docshell.asp?URL=01_Exec_summary.htm
Australian Government spending is projected, in the absence of policy adjustments, to rise by around 4¾ per cent of GDP by 2046-47 (Chart 6). By that time, a fiscal gap of around 3½ per cent of GDP is projected to develop. This compares to a projected a fiscal gap of 5 per cent of GDP by 2041-42 in IGR1 (Chart 7).
If surpluses are maintained to 2022-23 as projected, then net debt would not re-emerge until the mid-2030s but would rise very quickly to reach around 30 per cent of GDP in 2046-47 and continue to increase after that date (Chart 8).
![]()
So indeed it is true! My generation and younger generation are fucked because of debt blowouts.
![]()
Australian Government spending is projected, in the absence of policy adjustments, to rise by around 4¾ per cent of GDP by 2046-47 (Chart 6). By that time, a fiscal gap of around 3½ per cent of GDP is projected to develop. This compares to a projected a fiscal gap of 5 per cent of GDP by 2041-42 in IGR1 (Chart 7).
If surpluses are maintained to 2022-23 as projected, then net debt would not re-emerge until the mid-2030s but would rise very quickly to reach around 30 per cent of GDP in 2046-47 and continue to increase after that date (Chart 8).
So indeed it is true! My generation and younger generation are fucked because of debt blowouts.
2
I havn't got the figures in front of me but I have been around long enough to see that most Australians are better off financially than they have been in 30-40 years.really? give me the % of fiscal spending vs GDP. I'm pretty sure it's right up there.
However, we have a big problem in the housing sector. Probably the biggest problem at the moment is the one that confronts first home buyers who can't get into the housing market. This is primarily as a result of the ridiculous policies of state government's who have forced up the cost of land.
That is an issue that must be addressed.
you know that releasing land wouldn't actually make houses that cheaper? It would just cripple the people who purchased homes in mortgage belts because their homes are worth less than their mortgage. Thus, a housing recession.I havn't got the figures in front of me but I have been around long enough to see that most Australians are better off financially than they have been in 30-40 years.
However, we have a big problem in the housing sector. Probably the biggest problem at the moment is the one that confronts first home buyers who can't get into the housing market. This is primarily as a result of the ridiculous policies of state government's who have forced up the cost of land.
That is an issue that must be addressed.
Plus, it's not like land is all you need. You need utilities, transport and roads to connect it up. That cost $$$
tax cuts?! 30billion dollars to save someone $16 a week? WTF, that 30billion could be spent on something huge, such as climate change? Instead we will get the deadbeats spending $16 extra on alcohol. This budget is just a way of trying to win back the ratings they have been lacking of late. I'm still going to put my trust into kevin.
Australians are better off?! Look at WA and the housing costs, and Sydney has the same problems. Wages could be higher, but costs are even more so.I havn't got the figures in front of me but I have been around long enough to see that most Australians are better off financially than they have been in 30-40 years.
However, we have a big problem in the housing sector. Probably the biggest problem at the moment is the one that confronts first home buyers who can't get into the housing market. This is primarily as a result of the ridiculous policies of state government's who have forced up the cost of land.
That is an issue that must be addressed.
As for it being the states fault, nothing will ever get done if dickheads like you and allt he politicians just play the blaming game without getting anything done.
What would the lower income person do with $16? They would not save, but rather just spend...
And what's the go with throwing a one off $500 to old people!!! What a waste of money!!!
BTW the housing prices isn't from a lack of land but rather a lack of housing, very subtle yet big difference.
The government needs to can the top tax bracket. This bracket is taxed WAY too high.
Also there is only token spending on education and environment, probably two of the top 5 most important areas.
BTW the housing prices isn't from a lack of land but rather a lack of housing, very subtle yet big difference.
The government needs to can the top tax bracket. This bracket is taxed WAY too high.
Also there is only token spending on education and environment, probably two of the top 5 most important areas.
There is nothing wrong with the top tax bracket. And from next year (if HowCo. are re-elected) it will only kick in at $180,000. The people paying that rate are a very small percentage earning a very high amount.
I don't think the punters will give this budget much attention. I see little to no poll effect.
I don't think the punters will give this budget much attention. I see little to no poll effect.
I dont think this budget is anything special. Its all about trying to win votes and not enough about the real issues on hand. Things that missed out or didnt get enough attention are: Health, Education, Environment and Infrastructure.
Im interested in this concept about australia going into debt in the future. Is this because of the pension and associtated costs and stuff? Why will australia be getting so much debt?
Im interested in this concept about australia going into debt in the future. Is this because of the pension and associtated costs and stuff? Why will australia be getting so much debt?
1 - 20 of 101 Posts
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