Government investing billions in Baby Boomers in new budget

Australia’s politicians have been talking about it for months and the day of the 2018 budget is finally here.

With everything to be formally announced by Treasurer Scott Morrison in a budget speech tonight, details for what the budget means for older Australians have already been released. According to a report by The Australian, Baby Boomers will be better off.

It is thought $41 billion will be specifically set aside for Baby Boomers in a special retirees and aged-care package. Included will be 20,000 new home-care places that will allow Australians to live at home for longer. This means there will be added assistance when it comes to personal care, help with preparing meals and added assistance with chores. It is thought that more than 100,000 older Australians are currently waiting for support, with the new places to take pressure off this high number. A pension energy supplement is also reported to come into effect, assisting over-60s with increased costs of living.

The Australian also reports the current Work Bonus program, which allows aged pensioners to earn $250 a fortnight without impacting the pension rate, will be increased. Retirees will also be encouraged to start their own businesses, while part-pensioners and some self-funded retirees are thought to have reverse mortgage schemes extended.

It should be noted that while aged care is receiving more funding, it has actually lost more than $2 billion in cuts over time through adjustments to the residential care funding formula.

Read more: Off the hook! Pensioners exempt from Labor’s new tax

While the Coalition is confident in the new budget, former Treasurer Peter Costello isn’t confident the government is doing enough to pay off the nation’s debt. Speaking on Monday evening’s 7:30 Report, Costello said Australia wouldn’t be able to pay back any debts until spending was under control.

“It took us 10 surplus budgets to pay off last time. You would be doing well to pay of it off in 10 surplus budgets this time,” he said. “I think the probabilities are we will never get back to where we were, you and I will die before that happens.”

He added there had been 10 years of deficits which translated to borrowing about $370 billion. He said with interest, Australia would be paying even more.

“That money doesn’t go away. It’s going to be there, we’re going to be paying interest on it, until somebody pays it back,” he said.

Fmr treasurer Peter Costello says most of us will be dead before Australia's national debt is paid off. #abc730 #Budget2018 #auspol pic.twitter.com/SoXuCLdCHY

— abc730 (@abc730) May 7, 2018

Low and middle-income earners are also set receive tax cuts of about $10 a week under the new budget, while official confirmation on all cuts will be included in tonight’s speech.

What do you think? Do you think the government should prioritise over-60s when it comes to the budget?