On Tuesday 3 May the federal budget will be handed down. We can expect to see the budget continue to focus on regional issues and projects while also striking the balance between the ongoing deficit repair work and stimulating growth in the economy.
The budget will attempt to balance the continued funding of various necessary social programs while continuing to repair the bottom line after the damaging deficits and waste of Labor. Just because the rhetoric around the budget emergency has died down a little, doesn't mean the reality hasn't. Last week Moody's credit rating agency highlighted the threat of Australia losing its AAA credit status.
Under the Rudd-Gillard-Rudd Labor years the world's greatest treasurer, “Wayne Swan” kept promising but failing to deliver budget surpluses - not once but six times. Labor's revenue forecasts from ventures such as the mining tax were woefully inadequate, and the mammoth costs associated with projects such as the NDIS and Gonski were pushed out beyond the budget horizon.
Labor will be doubling down on their promises in the lead up to this election because they don’t expect to win. If we're complacent and Labor do win there will be no hard won budget surplus, built up by a previous National and Liberal government, to squander by Labor as they have before. It will all be added debt from day one.
We were treated to a sneak peek at some unconfirmed but possible changes this week. They include an improved bottom line with better targeting of multi-nationals and corporations that engage in tax shifting, as well as tightening some of the generous superannuation tax concessions for higher income earners.