Here are the things that concern me about the 2012-13 Federal Budget.
1) Having a budget surplus is a restrictionist economic policy stance and not what the Australian economy needs right now. The RBA is dropping interest rates to try and stimulate the economy and the Government is moving to an anti stimulus fiscal position.
2) Swan’s estimate of the deficit for this last year was $22 billion. The final deficit was $44 billion. This is a huge margin of error. And now he wants us to believe that he has the figures right for this year. Really Wayne?
3) I am disappointed that the Government backflipped on the 1% cut to the company tax rate. We need to provide an environment that encourages entrepreneurialism and gives incentives for people to have a go. A tax cut would also have helped struggling small businesses.
4) I dont agree with the delaying of the increases in foreign aid. We are a fairly prosperous nation and I think that we should take our responsibility seriously to improve people’s life overseas. Mind you I think that it could be better targeted and better spent.
5) Welfare payments will account for 35% of all the income from Tax receipts the Government will receive. This seems exceptionally high and I wonder how economically sustainable this is.
6) Giving money to families on the eve of the introduction of the Carbon Tax seems to me to be outright political bribery. The $1.8 billion that will be given out in June, could be use to fund essential infrastructure, hospitals, more police or nurses. Now I am not anti families, I am just suggesting it may not be the best use of the money.
7) $29 a ton for Carbon seems to be exceptionally high by world standards.
8) Government revenues are down $150 billion since the start of the GFC – which shows just how much the Australia economy has shrunk. See point one.
9) Planned taxed breaks for Green buildings will not proceed. To me this sends a mixed message to the Australian People. If Global warming is going to kill us all, (insert dramatic music), shouldn’t we be doing more Green incentives. After all we are about to bring in a Carbon Tax in order to save the world – so why the back down on the Green building incentive.
10) The scrapping of the 50% discount on interest income is an anti saving measure. We should be encouraging people to save.