BUDGET 2013: Fiddles play a two-part tune

Premium content

To access premium content, please log in or set up a subscription. It's quick and easy.

More from Business Spectator


Please login or register to post comments

Comments Policy »

Agreed "The Gillard government will be remembered for its relentless attack on small enterprises"
....but also for the partly demolishing the contractor business and forcing them into IR laws similar to Gordon Brown UK ones that decimated the sector and the economy in the UK.

Mind you they were introduced by the Howard Costello of the later days with Ken Henry, and both protected the Brick layers, I think it is time to move on from the Ken Henry and Ross Garnault days. Too much damage has been done by these guys.

it is no secret that the UN wants to reduce the population..Gillard supports the UN whole heartedly any wonder why the BABY BONUS is axed... The ALP is playing the pipe for the N

Bob, I trust that you have diarised Jan 1 2016 and you don't go soft on the LNP should they conveniently forget about repealing the monthly PAYG regs on SME's.

"There is no shortage of capital for infrastructure from superannuation, provided the users are prepared to pay the costs."
For people close to retirement and those that are retired in this economic environment,it is not conducive to risk [sharemarket/property),because there appears to be no end to the sovereign debt crisis,especially as it is being papered over with more debt.
With a zero interest rate policy around the world,and extremely low interest rates in this country....capital is being destroyed.
There is no shortage of past / present debt,but capital is being destroyed by extremely low interest rates and an increase in the cost of the things you need to buy like food,electricity,gas,insurance,water rates,council rates.And as the Australian dollar goes down,the things that we don't need to buy from overseas will get more expensive.

Agree Francois. The Liberal Party also needs to cast off the Menzies/Howard mantle and the latter's shibboleths if they are to get reasonable tenure in office, despite the disarray within the Labor Party. As a fervent disciple of John Howard, Tony Abbott is about to get bitten on the behind by his dogmatic (and unaffordable) perpetuation of middle class welfare.

I'd like to add my thoughts on how it might play out with the Libs -

1. They keep all Labor's spending cuts and most of the tax increases. Its a free kick - they can blame Labor for them.... forever.

2.The disability insurance scheme is great policy - we just can't afford it. I expect Libs to say they are deferring it until the country's financial situation is stabilised.

3. Labor's education reforms will be killed off. Fix the system first, especially reward for merit pay arrangements for teachers (not years of service). I am sure there are huge education spending efficiencies that the Coalition govt will be able to negotiate with the states (nearly all Coalition). They can probably make giant leaps in the quality of education our kids get without spending another dollar.

3. BEFORE THE ELECTION - the Libs must do all they can to protect our country from future damage. Is this alarmist? I don't think so -, think about who controls the two houses of parliament, think about what NSW Labor did in the last few months of govt ( the things they were doing are still being revealed). Yes the Gillard govt have different faces up front, bit its the same union dominated party backroom. Think about what careers Gillard's cabinet had before entering parliament (hint - think unionist). Parliamentary strategy by the Libs will be crucial. I suggest the mantra they live by should be – DON’T PREANNOUNCE ANYTHING IN REGARD TO LABOR’s PROPOSED LEGISLATION. Whether they plan to support an issue, or plan not to, they should say nothing, starting today!
Why? Keepinq quiet until the day legislation actually goes to a vote has the following advantages –
(i) This avoids posturing by the minor parties, who are so desperate to sound relevant before the election that they could do serious damage to our country's future through their choice of what to support and what not to.

(ii) This gives the Libs more flexibility in negotiating last minute changes to legislation

(iii) It gives them better control of actual outcomes. A real risk they face is that the booby traps that Labor have set in this budget grow into land mines by the time the actual legislation is passed.
I know most of what Labor announced last night is irrelevant because of the imminent change of government, but I still fear that the Libs could paint themselves into a corner they don’t want to be in if they can’t keep their mouths shut. That could lead to detrimental consequences for our country once they take power.

My concern is that we are entrusting effectively the same team (Treasury) to pick investment winners that will cost tens of billions of dollars who are responsible for the forecast a $1.5 Bn Surplus just 12 months ago!

Risk? What Risk!?

The government has decided to appoint a new advisory function within Treasury to provide “guidance on the most appropriate funding and financing structures to bring complex infrastructure projects to market”.

still as unbalanced as ever Robert ....at least your other commentators have helped to redress your bias.

Balance, how can you be balanced with a budget position like that?