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Federal Budget 2009 highlights

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investorpaul said:
What a non event!!!

Not too much pain, that budget is all about ensuring political survival.

The 4.5% REAL GDP growth forecasts for the year after next are rediculous, way too optimistic.

Keeping the FHB grant for another 3 months, before tapering it off is also daft and just aimed at buying votes.
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My thoughts exactly. All this talk about a tough budget. It's about as tough as marshmallow. Its all about keeping the masses happy and spend,spend spend. One group they have ignored, and that is the unemployed.

Even with all the jobs they talk of creating, a million unemployed come next election, getting a below subsistence dole, will be a force to be reckoned with. But of course they have another budget before that to make unfunded handouts.
 
Please correct me if im wrong, but I noticed the single pensioner increase is just over $30 a week but if your in a couple the increase is only $10 per week combined or only $5 a week ea. I wonder what the percentages are single as opposed to couples.

With all the other changes to pensions ie the raising of the rate from 40cents in the dollar to 50 cents in the dollar that the pension reduces if you earn more han $138/fortnite for those working part time it wouldnt take much for pensioner couples where one of them works part time to be worse off ie if you earnt more than $119 a week you will be worse off.

Therefore I can see part time workes recieving a pension will be cutting back hrs as to not be worse off.

UBIQUE
 
Classic...absolute classic.

Too much anger to even think about writing. Where the hell did they pluck these jokers? It is seriously like Australian Idol or something of that ilk...pure popularity contest.

My only prayer is that my boys in blue will block half the idiotic spending from this Labor government, force Rudd into a 2010 election and the Australian public wakes up and smells the increased taxes, oops reckless spending, oops popularity contest...oops i mean roses :rolleyes:

Sadly, it will never happen. The working class are all too happy with the big $900 from Kruddy (who i'd bet my life savings many think he plucked from his own back pocket...ermmm) and continue to live in ignorant bliss. This smug man and his uneducated, whimsical crew will be the bane of Australia for a very long time, even after they're gone.

Somebody please start a working and living overseas thread...complete with experiences etc.

Sigh...
 
sting said:
Please correct me if im wrong, but I noticed the single pensioner increase is just over $30 a week but if your in a couple the increase is only $10 per week combined or only $5 a week ea. I wonder what the percentages are single as opposed to couples.
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That's right, Sting. Even with that greater increase to single pensioners, the two payments are still inequitable. Consider that a single pensioner still has to pay the same rates, insurances, and almost the same electricity, water etc as a couple out of a benefit which is much lower than the couple benefit.
Ditto if they are paying rent. How can a single pensioner, with new rate of around $630 p/f manage to pay rent of around $250 p.w., electricity, insurance, rego, petrol, food, medical expenses etc. I don't know how they do it.

With all the other changes to pensions ie the raising of the rate from 40cents in the dollar to 50 cents in the dollar that the pension reduces if you earn more han $138/fortnite for those working part time it wouldnt take much for pensioner couples where one of them works part time to be worse off ie if you earnt more than $119 a week you will be worse off.

Therefore I can see part time workes recieving a pension will be cutting back hrs as to not be worse off.

UBIQUE
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Yep. How stupid is this.
 
kincella said:
Thought it may be appropriate to get a thread started so we can all comment on what changes are made and how it will affect each of us....regardless of all the so called leaked information....there is usually some really bad stuff in there that has not been leaked...
cheers
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We need to wake up and relook at the way we live, spend and at this moment create a future that will benefit mankind longterm....meaning that a new world economy is way overdue...
If we continue on produces nothing but the same in every aspect that we are currently in or worse (more likely)...
 
Here is a good one from the Business Spectator. I was wonderting whether the advertised 25 bilion to be spent on infrastracture is going to take forever, obviously it will. of course it is much easier and requires less time to spend 10 bil on cash hand outs...

"The Treasurer grandly describes it as the third phase of fiscal stimulus, and the headline number is an impressive $22 billion, as in (from Wayne Swan’s speech): “The centrepiece of this Budget is the $22 billion we are investing in the infrastructure our nation needs to grow and prosper in the years ahead.”

Actually, as discussed elsewhere, the centrepiece of the budget is a debt-funded increase in the old age pension.

As for infrastructure, I can only count $1 billion in the budget measures for next year, after which, according to the government’s forecasts, the recession will be over and stimulus will no longer be needed.

Moreover, in describing the infrastructure investments, the budget papers frequently use the words “essential” and “urgent”.

In other words, not only will these things take a long time, but they are not optional – they are needed not so much that our nation can grow and prosper, but simply so our nation can function.

The components of the $22 billion are listed in Budget Statement no.1, and each item represents the total investment required for each project by the time it is finished. There is $8.4 billion on roads, rail and ports, $3.5 billion on clean energy, $2.6 billion on education, $3.2 billion on hospitals and the old $4.7 billion investment in the National Broadband Network. Total: $22.4 billion.

But don’t look for those amounts in the actual budget expense measures. The clean energy initiative, for example, is in at a round number of $300 million a year; hospital infrastructure is in for $383 million next year and $273 million the year after; metro rail is down for $196 million next year and Network 1, the inland rail freight corridor, is down for just $75 million, after $742 million in the current year.

I managed to track down $53.2 million set aside for the National Broadband Network in 2009-10, for “implementation and establishment”. The Department of Finance is also getting $1.1 million to set up the NBN company since its minister will be the shareholder.

How the rest of the projects were chosen is a little hard to fathom. The Infrastructure Australia report accompanying the budget papers is very glossy and printed on expensive paper, but the projects are not listed in order of recommended priority.

They are grouped under seven headings: NBN, national energy market, competitive gateways (ie ports), national freight network, transforming our cities, indigenous infrastructure and water.

The third, fourth and fifth of those categories (ports, freight and cities) contain eight to 10 projects each, listed in alphabetical order – a total of 29 projects. In the second half of the brochure, however, there are 38 projects listed across those three categories, also in alphabetical order.

This was done, presumably, to allow the government to pick the best projects for political purposes, rather than having to follow some set of externally recommended priorities, God forbid. This is politics, not economics, after all.

Of the 38 rail, road and port projects listed – alphabetically – by Infrastructure Australia, the government has picked 15, ranging in size from $20 million to $3.2 billion.

And the winner is…Melbourne! It gets $3.2 billion for the Regional Rail Express project, which is the proposed new rail link between West Werribee and South Kensington.

But then, Melbourne’s rail project is chicken feed compared to Brisbane’s and Sydney’s, which are listed in the Infrastructure Australia document at $14 billion and $13.1 billion respectively. Far too expensive.

Wayne Swan’s $22 billion includes $20 million for a feasibility study into the Brisbane project, but nothing for Sydney, although it gets $1.4 billion for the Hunter expressway, the second biggest on the list.

All of which is the “third phase of stimulus”, and it should help us get out of the next recession, but not this one. "
 
Also what I dont understand is how the leaked 'tough' part of the budget has gone missing but the deficit part is here to stay....
 
investorpaul said:
Not too much pain
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Pardon ? The unprecedented debt bill is HUGE, it's making my eyes water... largest % debt of GDP ever... WE will have to pay it...

sting said:
Therefore I can see part time workes recieving a pension will be cutting back hrs as to not be worse off.
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The entire Australian welfare system provides disincentives to work. It's design is ar_se backwards.

http://blogs.theaustralian.news.com...p/theaustralian/comments/welfare_parent_trap/

Concern that the welfare system discourages work has engaged a new consensus on the issue that includes Treasury secretary Ken Henry.
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so its all froth and bubble and spin....
no gutz no glory...oh and the infrastructure money was the old one from last year...it was allocated last year...and of course nothing done...
they spent double that amount throwing around 900 cash to....whatever
grrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr
what happened to the new rail from Melb to Brissy???? no money there for that one....

no new increased tax on liquor or ciggys what the...

the biggest losers ar single mothers and the unemployed....how are they any different from pensioners or disabled people...who will receive 336pw...or a couple 500pw...and unemployed and single mums 200pw....
pension is supposed to provide just the basic costs....is it cheaper to live if you are unemployed...compared to the same age person disabled ???? a difference of about 136 extra to one but not the other....

pensioners earning salary will have 500 pf discounted from the other rules...favouring people working versus the investor...how un australian...when unemployment is tipped to go higher

the only good thing is that investment allowance is 50% until Dec 09...assuming it passes legislation....so buy a car, pc and assets and claim 50% deduction in the first year only....wow buy a new car and write off 50%

negative gearing...for those earning over 250.000 only will be affected....
Taxpayers with an income of more than $250,000 a year will have tax deductions from unprofitable business activities "quarantined to the business activity", Budget papers say. Under existing rules, all losses from business ventures, such as farming or property development, can be claimed against income tax.
 
**IMPORTANT FLASHBACK**

This will give you all a good laugh now we have something in writing to compare with last year's Budget speech.

There are just so many laughably incongruous, hypocritical and just plain contradictory comments made by Swannie Baby in last year's Budget speech when one considers the CURRENT Budget speech and CURRENT state of the world and local economy that I won't even bother try to comment on them all - highlights will have to do!

BUDGET SPEECH 2008-09 DELIVERED ON 13 MAY 2008 ON THE SECOND READING
OF THE APPROPRIATION BILL (NO. 1) 2008-09 BY THE HONOURABLE WAYNE SWAN MP
TREASURER OF THE COMMONWEALTH OF AUSTRALIA

Mr Speaker, I move that the Bill now be read a second time.

INTRODUCTION

This Budget is designed to meet the big challenges of the future.

It is a Budget that strengthens Australia’s economic foundations, and delivers for working families under pressure.

It is the responsible Budget our nation needs at this time of international turbulence, and high inflation at home.

A Budget carefully designed to fight inflation, and ensure we meet the uncertainties of the future from a position of strength.

A Budget with a $55 billion Working Families Support Package at its very core.

A Budget that begins a new era of strategic investment in Australia’s future challenges and opportunities.

And a Budget that helps plan, finance and secure Australia’s long-term national security and defence needs.

These are the commitments the Government gave to the Australian people at the election. Mr Speaker, this Budget honours those commitments.

The Government has made sure every single cent of new spending for the coming year has been more than met by savings elsewhere in the Budget.

Our commitments have been honoured by redirecting spending. Difficult spending cuts have helped fund our Working Families Support Package and our new priorities for the nation.

[size=+1]We are budgeting for a surplus of $21.7 billion in 2008-09, 1.8 per cent of GDP, the largest budget surplus as a share of GDP in nearly a decade.[/size] This honours and exceeds the 1.5 per cent target we set in January, without relying on revenue windfalls. [size=+1]It is a surplus built on substantial savings[/size] of $33 billion over four years, including $7 billion in 2008-09 alone.

And [size=+1]it is a surplus built on disciplined spending, with the lowest real increase in Government spending in nearly a decade; spending growth which is one quarter of the average of the previous four years[/size].

Mr Speaker, [size=+1]we need a strong surplus to anchor a strong economy[/size]; to do our bit to ease inflationary pressures in the economy; to build a buffer against international turbulence; and so we can fund ongoing long term investment in the ports, roads, railways, hospitals, universities and vocational education we need, to deliver growth with low inflation into the future.

ECONOMIC OUTLOOK

Mr Speaker, these are challenging times. Countervailing forces are creating high inflation at home and economic turbulence abroad.

Weaker global growth and the effects of monetary policy are slowing our economy.

Inflation has increased in recent years, pushing up interest rates, and putting more pressure on families.

Eight interest rate rises in three years, and the global slowdown, are expected to see growth in our economy moderate to 2 ¾ per cent in 2008-09.

Potent forces in the global economy are pushing Australia in opposite directions.

Slower growth in the United States and turbulence in world financial markets are affecting many countries, including our own. At the same time, the prices of our exports are rising strongly, when domestic inflationary pressures are already high.

Robust growth in emerging economies, particularly China and India, is expected to drive further large rises in Australia’s terms of trade, boosting income and price pressures.

[size=+1]The terms of trade are anticipated to rise by over 20 per cent by the end of this year. This will be the largest increase in a generation, lifting nominal economic growth to 9 ¼ per cent, the highest rise in 19 years.[/size]

The Australian economy is enjoying its 17th year of growth, now spanning three governments. But productivity growth over the last five years has averaged 1.4 per cent a year, the lowest in 17 years. And capacity constraints have put upward pressure on inflation.

When the Government came to office less than six months ago, Australia was facing the highest levels of domestic inflation in over 16 years, and inflation reached 4.2 per cent in the March quarter. The price of bread has risen over 18 per cent in the last two years alone.

Inflation is a drag on growth. It saps confidence, and hurts families and businesses throughout Australia.

We are working to put downward pressure on inflation so that we can ease the cost of living and interest rate pressures on working families.

Our nation also faces longer term challenges and opportunities, in the form of an ageing population, the economic effects of the rise of China and India, and the consequences of climate change.

With careful, responsible economic management, we are confident we can meet these challenges.
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OMG :eek:

Was that really Swannie Baby's "accurate" read on the future direction of our economy - only 1 lousy year ago? His 2008 Budget speech boast of "disciplined spending, with the lowest real increase in Government spending in nearly a decade; spending growth which is one quarter of the average of the previous four years of responsible spending" strikes me as a tad ludicrous in the face of the gummint's recent and now ongoing Mega Spending Spree.

Quick! Someone slap me with a wet fish - I need to wake up to today's reality!

Crikey! How can ANYONE honestly, truly believe what KruddSwan Ltd have NOW forecast (hand on heart) will be the direction and prosperity for the next few years for our rapidly en-feebled economy? Oh, I see. Unlike last year, this time their flashy crystal balls are actually working and they can see and forecast the future with great precision!

Sheesh! It is all a total fantasy made up of very rubbery figures - which pre-suppose that there will be no further significant *shocks* or variations to world economies or finance markets? Why is there no REAL safety allowance made for any near-future "worst case scenarios" where, say, another "unforeseen" man-made or natural calamity crunches the world financial markets?

IMO we are being set up for the Mother Of All Debts if something DOES go *bust* in the world economic recovery cycle before their fantasy predicted MegaSurpluses arrive in the meantime. :banghead:

Meh. What would I know....

Chiz,


aj

PS: *S A V E* is a four letter word....
 
Well I pretty much give up now, no point stressing over Priscilla Queen of Canberra and her partner Forrest Gump's handling of the economy.

Lower end housing bubbled to the max and going higher, and debt stretching beyond the horizon while these simpletons run us into the ground.

Time will sort it out but we will all pay for this one way or the other in the next 5 years and beyond, I only hope the AU electorate wake up before the next election, but this creep is so slippery he will have already worked out how to bribe votes just before the next election, you can be sure of that.
 
I like Jennifer Hewett's description of Wayne as Pollyanna Swan.

Certainly he was optimistic last night at the despatch box with all his mates around him saying "hear hear".

It was a little different later with a little bit of hard questioning. When he is uncomfortable, as he always is when asked questions, and he has to come up with porkies, his head and shoulders start jerking around. The body language says it all.
 
Calliope said:
I like Jennifer Hewett's description of Wayne as Pollyanna Swan.

Certainly he was optimistic last night at the despatch box with all his mates around him saying "hear hear".

It was a little different later with a little bit of hard questioning. When he is uncomfortable, as he always is when asked questions, and he has to come up with porkies, his head and shoulders start jerking around. The body language says it all.
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He's just not very smart, end of story, the exact person we don't need as treasurer at this point in time.
 
What a letdown. Not many tough decisions made here...

Where are all the spending cuts for 2010/11 when we are emergin from the recession at 4.5% growth?? Oh, thats right, election year.

Funny, the 22billion URGENT infrastructure doesn't really kick in until 2010/11 too.
And the maternity pay
and the solar spending
nor the CPRS

Also, have a look at the forecasts.
-.5% growth next year? I think not. with all of this stimulus, plus record low interest rates?
That would probably equate to something like...
July-sept -.75%
oct-dec -.25%
jan-mar 0%
apr-jun .5%

Do they really think we're going to contract by 1% odd by the end of the year? With all this stimulus? Plus, China perhaps being close to back on track? And the US flatlining instead of collapsing?

One forecast in particular. Residential investment next financial year - 0% growth?? After dropping 10% last year?? With $21000 bribe?? with a 5% increase in lending last month? With a housing shortage of 50000 homes per year??

I can see the govt, right before the next election, coming out and saying
"look at our good economic management. The deficit was going to be $58 billion, but turns out its only going to be $20 billion because of our stimulus etc etc etc" when really the turnaround will be due to incorrect assumptions, and a quicker turnaround than expected due PRIMARILY to low interest rates NOT goverment handouts that were saved (no effect on economy).

OMG OMG OMG OMG

Get a goddamn clue.
 

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