Where did the crisis go? 166



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The belts are being loosened, the cuts are being removed, the period of sacrifice is over. Instead there is more money for small businesses, more money for pensioners and more money for medicines. Could the Government be admitting they got it wrong in 2015?

This new budget predicts GDP growth from here on in, and a surplus in 5 years time, a far sight from the horror story that was presented to us last year. Could this quantum of turnaround be possible?

This budget is far from a cutting and saving budget. It is drawing over $25 billion, higher than that which Wayne Swan spent to eek us out of the GFC, when the economy needed cash to grow so badly and pushing that money into the economy in the hype it will stimulate growth. And it is not the highest earning budget at first glance.

It actually leaves the viewer of the speech concerned that we could be being told a rather “glossy” story about our economy, while the government jawbones and spends its way out of a challenging economic corner? The iron ore price has halved, the nation’s tax base has shrunk, and the unemployment levels in our nation are flying high and small businesses have faced some of the highest tax levels in the world.

The deals being handed out look generous though and it is clear the government wants to benefit those who take risk to grow a stronger Australia. Perhaps even generous enough to drive some celebration among small businesses. Two billion dollars worth of tax deductions are being made available for small business, commencing immediately, up from $1000 per year to $20,000 per year, encouraging them to spend on the beneficial investments they need to make. Another 1.5 billion dollars will be spent on a 1.5% in discounts to tax for small business. They want business to start up and grow, and want to support people who need and want a job.

And what we all hoped and wanted to hear about was there… In fact we were astounded at the change of tone around the older populations.

“There will be no new taxes on superannuation under this government… And the age pension will continue to increase twice per year,” the Treasurer Joe Hockey said proudly with a wry smile on his face.

On a more serious note though, the Government has dumped its plan to link pension increases to inflation rather than indexation levels that are somewhat higher and are instead restricting people at the upper asset levels from accessing the pension to recover savings here.  They have also announced they will adjust the thresholds for assets tests on the pension, meaning 172,000 pensioners at the lower end of the pension will be better off, while 81,000 pensioners who currently claim the part pension will no longer be eligible.

Before today, singles over the age of 65 with assets (excluding the family home) of less than $775,000 were able to claim a part pension, however the new limit will now be set at $550,000.

In further spreading of the good news into the regions, farmers will get tax breaks for fences and equipment. And $1.2 billion will be spent on national security across a myriad of areas from anti-terror to data warehousing costs of retaining our information which legislation now requires.

And the only places we heard about tonight where money is going to be found seems to be through increases to the tax obligations to multinationals, decreasing the tax-free threshold for backpackers, and cutbacks on those receiving deductions today for work related car and entertainment expenses will provide the fodder. In fact companies like News Limited and Google who are allegedly shifting profits offshore without paying much tax will be prevented from doing so.  There is also cutbacks in the welfare system that are expected to scrape $1.6 billion back, through greater checks on integrity.   Visa processing fees will increase income of $500 million.  And foreign investment will raise money for the government as people push more and more money into our nation, and we charge higher fees on this.

It’s a big budget. It’s a budget that doesn’t disappoint very many people.  And it doesn’t upset like last years.  It seems there is no surprises, and somehow, without much change from last year, we’ve managed to completely turnaround our nations hope and fiscal wellbeing, even though much of last year’s budget cuts were never passed in the Senate.


Share your thoughts today.  Could this be the last budget before another election?


Rebecca Wilson

Rebecca Wilson is the founder and publisher of Starts at Sixty. The daughter of two baby boomers, she has built the online community for over 60s by listening carefully to the issues and seeking out answers, insights and information for over 60s throughout Australia. Rebecca is an experienced marketer, a trained journalist and has a degree in politics. A mother of 3, she passionately facilitates and leads our over 60s community, bringing the community opinions, needs and interests to the fore and making Starts at Sixty a fun place to be.

  1. Good shows they are listening and trying to get it right.

    2 REPLY
    • Thats how i saw it.. listening… put things out there listened and then acted. Didnt agree on flag pole or war memorial in different country that money should be spent on healing the military alive here in Australia. Also didnt agree with aid going to Indonesia. We have given them enough. Time to stand on their own two feet. That money could go to aiding our homeless and hungry.

    • I think they have tried hard with this budget and the only people who aren’t happy are mainly those with their hands perpetually held out for some hand out.

  2. Have we actually paid off that huge debt from Labour?????!!!!!!!

    6 REPLY
  3. They are due to go the polls next year, and I am tipping it could be earlier, hence the reason for the soft budget.

    7 REPLY
    • I wish they had a back bone and stuck with cutting all freebies , and being tougher on welfare . It’s for those who need it , not a wage for those who don’t want to work .
      So Long as the wasteful wallies don’t get back into power, we may survive a financial crisis , otherwise ‘ look out world we are passing Greece in the ruined country race’ , same as dopey dan is doing in Victoria , 6 months and he has already wasted nearly I billion $$$ don’t know if we can sustain a government like that in federal politics as well . We will be ruined and the laughing stock of the world ‘ how to go from AAA rating to broke in less the 3 years ?
      Easy = ALP Simple maths.

  4. I sat up last night and there was more involved with the budget than we heard on tv for instance our scripts will rise 80 cents for those on a pension and $5.00 if you not and despite all the screaming about cutting aid to Indonesia in here by Liberal voters..they have cut aid to Indonesia by 40 %..I hope they go to an early election..I doubt very much pensioners will trust them..Liberal voters probably yes but they will need swing voters to get across the line

    2 REPLY
    • If you can, get a copy of the Financial Times today and you will see all the hidden things that he didn’t announce.
      Yes, he hit pensioners yet again. 80c doesn’t sound lije mych but when someone is taking 5 or 6 different medications, that is an extra $5 or $6 we have to find. Put practically, that is five loaves of bread or five litres of milk.

  5. What the country not in dire straights anymore what liars don’t believe a word they say

    4 REPLY
    • What do you mean! Of course we are still in debt. The Budget was made to try and lessen it. It will be many years before Australia sees a surplus. Who are you calling Liars?. You should not be making sweeping statements, you obviously don’t know what you are talking about.

      1 REPLY
      • Every country in the developed world has a deficit. There was no budget crisis. The world monetary organisation listed Australia as the 4th best economy in the world at the time we were being lied to about the position we were actually in. 4th best in the world where was the crisis.
        Politicians again. When their lips are moving they are telling lies

    • That’s your opinion I do understand what I’m talking I don’t believe these people they clearly don’t have a clear picture for this country obviously you believe everything u hear good luck with that. As Australia is in for some hard times

    • Geezus Molly Holland everyone’s entitled to their opinion!! A tad bit touchy aren’t we!! You need to settle petal!!!

  6. 4 REPLY
    • yea he has a CHOICE not to claim the allowance if he is staying in a house owned by his wife. He butters up his own bed first & expects the public to pull in their belts. hypocrite. The salary he and his wife are ringing in is enormous yet he still claims travelling allowance to get to a house his wife mostly owns.
      I have no time for this fatfuck and even less now. Cannot stand this man so much. Supercilious hypocrite

    • That’s what a FAMILY TRUST ACCOUNT is all about; ASSETS not in your own name! Go figure it out, and, yet there’s going to be a “deposit tax” on ALL bank accounts given that everything is now “electronically” debited/credited!!

    • Yes and a lovely weekender in Stanwell Park NSW and seen shopping in Helensburgh – taxed assets or another family trust account??????

  7. The problem is still there , ut carnt go away, there just trying to get people working to get off welfare , to pay taxes to pay back our budget problem that way, that’s what government are supposed to do.

    1 REPLY
    • Yes but it is incredibly hard to get work, I am trying to find work and I am going on for 62 later this year and no-one is even looking at me. Mind you my partner is working but they cut a day as he is casual and I went to Centrelink to see if we could get some assistance. yes I did $2.70 a fortnight. WOOOOHOOOO. I am going to cripple the country.
      We need to stop judging ALL people on the dole. Not everyone of them is a bludger. Once we are mature workers it is so hard to find work. Many people get retrenched and cannot get back in the workforce.

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