Will the Budget bridge the gap?
Pre-Budget speculation gets fairly tiresome after a while – mostly just scene setting leaks and people writing and saying things to fill the space before they have something substantial to write and talk about. Budget night provides the relief of actually getting into the real thing after a lot of mostly empty shadow-boxing.
This will be the eleventh Budget I’ve examined since being in the Senate (and another eight prior to that as a policy advisor). In this era where governments engage in permanent campaigning, Budgets are probably less politically significant than they used to be, having become just one more weapon – albeit a big one – in the endless spin wars. But they are still very important as far as overall economic settings go, and even more so in regards to have they affect the day to day lives of every Australian.
I’ve written a few times in the past about what Budget nights can be like in Canberra – you can read those posts here, here and here. This Budget has a different feel for me, as I won’t be around in the Senate after June to deal with any of the legislation out of it or examine how the various programs and promises are implemented.
For the first time in six years, I won’t be going into the pre-Budget lock-up. I’ll just look through all the piles of paper like everyone else when it appears at 7.30 pm. There’s something for almost everyone in Budget papers, depending on what you’re interested in – the easiest place to find it all is through this link.
There will be one area I’ll be looking at above all else, and that’s Indigenous Affairs. Kevin Rudd’s first Parliamentary speech as Prime Minister included some explicit and major commitments in this area. The goals he set will be tough to reach. For there to be any chance of achieving those goals, then in amongst all the talk of surpluses and inflation and tax cuts, there will need to be statements showing continuing political commitment and prioritisation for these goals, and the extra funding to back it up.
A reminder of some of what Mr Rudd said back on 13 February this year:
Today’s apology, however inadequate, is aimed at righting past wrongs. It is also aimed at building a bridge between Indigenous and non-Indigenous Australians—a bridge based on a real respect rather than a thinly veiled contempt. Our challenge for the future is to now cross that bridge and, in so doing, to embrace a new partnership between Indigenous and non-Indigenous Australians—embracing, as part of that partnership, expanded Link-Up and other critical services to help the stolen generations to trace their families if at all possible and to provide dignity to their lives. But the core of this partnership for the future is the closing of the gap between Indigenous and non-Indigenous Australians on life expectancy, educational achievement and employment opportunities.
This new partnership on closing the gap will set concrete targets for the future: within a decade to halve the widening gap in literacy, numeracy and employment outcomes and opportunities for Indigenous Australians, within a decade to halve the appalling gap in infant mortality rates between Indigenous and non-Indigenous children and, within a generation, to close the equally appalling 17-year life gap between Indigenous and non-Indigenous in overall life expectancy.
…….
Let us resolve today to begin with the little children—a fitting place to start on this day of apology for the stolen generations. Let us resolve over the next five years to have every Indigenous four-year-old in a remote Aboriginal community enrolled in and attending a proper early childhood education centre or opportunity and engaged in proper preliteracy and prenumeracy programs.
(emphasis added)
20 Comments, Comment or Ping
philip travers
I see the Party that has always worked,whereas the Liberals never did,have held onto their Status as the Labor Party,by keeping alive,as work for politicians,the Work for the Dole scheme,thus at least being partially superior to some members of our egalitarian society.Will there be attempts also on this Scheme to sound like,by training, the bloody idiots as always who run the country!?Or do we have to wait for their mobile offices!?
May 13th, 2008
Lorikeet
I don’t think enough money is going to be spent on Health. The sum of $275 million for GP Superclinics won’t go very far. I’d like to see more money spent on developing this excellent concept.
It says people will receive assistance to have their teenagers’ teeth checked. The cost of treatment is far higher. I’m wondering if anyone will receive help with that. It would be better if the government applied a Medicare rebate to dental services.
Just like the Liberal government, they have a primary interest in “working families”.
There is no mention of pension increases or extra help for the disabled – just a tiny bit more for “older Australians and carers”.
Extra Education funds will go into tertiary institutions – as they certainly should.
Perhaps indigenous communities will benefit from the Education budget, but they haven’t been specifically mentioned in regard to anything.
What I’ve read so far has not impressed me very greatly.
May 14th, 2008
philip travers
Night passed as into day,Senator!
May 14th, 2008
Tony
Pensioners:
What pensioners ? Says Federal Alp.
$273 per week …. No Worries…Should be able to live on that.
Tony
May 14th, 2008
Tony
Lorikeet:
It’s unbelievable that a labour Gov with an incoming surplus of over 20 Billion and a forecasted surplus of over 20 Billion has totally ignored pensioners in this country.
Kevin Rudd believes that giving them a pension debit card of which 50% has to be used for food and clothing is also a great Idea. (Lets make them beg attitude).
Corporate Capitalism has surely taken over this Labour Party (ALP) and reminds me of Bob Santamaria’s creed “Communism and Capitalism insulted man by regarding him as a labour unit, rather than God’s Noblest creation.” Lets hope and Pray we see the continued support and gains made by traditional, DLP(Democratic Labor Party of Australia.) in this country.
Tony
May 15th, 2008
Lorikeet
Tony:
If DLP members complain after receiving $150,000 of income per couple, they’re certainly of no interest to me.
Here is what I saw on the door of the Personnel Section of the Department of Social Security in 1985:
“Human Resource Management”
A labour unit is exactly what a human being has become.
As a disability pensioner, I certainly do not spend 50% of my income on food and clothing.
House insurance, council rates, household maintenance and termite control take the biggest bites out of my budget.
Rudd needs to target the gamblers, smokers and alcoholics if he wants anyone to have a debit card. It might save some husbands or wives from starvation.
May 15th, 2008
Tony
Lorikeet:
The Exercise of the $150k on the other post has nothing to do with Pensioners or this budget. It was to explain to you how 2 young professional people with mortgage,2 kids with private schooling and health (and probably laided down with hex debts)would consider that a combined income of $150k was not a large one. And lets face it if couples are doing that and can survive good luck to them. The question of the debit card for pensioners is one of removing the right for any pensioner to spend their money as they wish. Any form of Government intervention in how a pensioners money is spent is a form of control and thats what I’m against.
A number of pensioners couldn’t even use a debit card let alone be told what they can or cant buy with it. I have relatives on the pension and they look forward to family allowance once a year so that they can buy a stove or a fridge or anything else that cant normally afford. The ALP wants to spread this and the baby bonus over the year removing the possibiltiy of these one off purchases to occur. Thats want I’m against. Then to call themselves a labor government. Thats what I meant by the ALP being corporate Capitalists as they have been for many years. If this is passed then you would be in trouble and may have to give up the termite control or the electricity.
Thats what this government bill is about.
Tony
May 15th, 2008
GZG
Lorikeet:
I’m in agreement that DLP members’ complaints about earning $150K of income per couple would be of little concern to rank and file “working familes”.
Not aware of any such members who are complaining though so your comment seems a little off target. Note to Tony: Now would be the time to come clean with details of your senator beating income – produce your group certificate stat! … or forever hold your tongue)
Tony may have been pointing out that in these days of diminished housing affordability, higher income folk can still be “doing it tough” (albeit in their own special way).
It makes little sense for anyone to scoff and berate fellow Australians more fortunately salaried, as they are paying more taxes than you or I do at present and someone has to pay for the hand outs.
I could go on to say that whilst the challenges are enormous, there are breathtaking opportunities and we do need to plan for our common future ….. yadda yadda …working families …. but I won’t.
There is an existing solution to Australia’s recent problems with political spin, and it’s earth friendly and available at this website.
May 15th, 2008
apprentice
I agree with the sentiments of a friend ofmine about the issue of maternity leave and how it has once again been watered down – even by this Government – what are they frightened of? She said “It really is pathetic the way the ALP is squibbing on maternity leave. Women voted Labor because they thought they would get a better deal and more respect from an ALP government than under Howard, who saw women as dissenters rather than half the population. The Labor power brokers are into selling women out though, it seems. They have absolutely no concept of the place of women in modern society. Maternity leave is the issue – if they want to give non-working women a baby bonus instead, so be it. But women must speak out, and loudly, or our status will continue to plummet. “
May 15th, 2008
Lorikeet
apprentice:
I was fired by the Bob Hawke Labor government in 1987, after I had suffered a workplace injury. I received no compensation, superannuation or damages.
The worker is a pawn in the game of employers – even more so if she is female.
If I want my clothes dryer fixed, I have to take it down from the wall myself, to save the repair company from a costly compensation claim if its worker hurts his back.
May 16th, 2008
Ken
Dont bother getting it fixed Lorikeet – in QLD? Clothesdryer…
May 16th, 2008
Tony
GZG
That’s right. As you would know you can’t buy a block of land in Brisbane
and build a home on it for under $400K. It never ceases to amaze me how aware middle income earners are of the pensioner plight but how unaware pensioners, are of the young middle income earners plight. Whether they have a combined incomes of 100K on a $350 mortgage, $120 on a $400K mortgage or $150k on a $500k mortgage these couples are doing it tough. Lorikeet says take the kids out of private school, either drop or reduce private health. While the young couple I spoke to yesterday would have gladly given up their $20 per tax drop to the pensioners. (As they said “we don’t have and wouldn’t miss it’). Imagine if everyone took their kids out of private schools and private health. Notice no one complained about the tax.
And yes GZG I’d gladly swap financial position with you any day.
Lorikeet:
# That fist sentence makes about as much sense as muzzmonsters slave comment.
The exercise was to your reference that a man on msn didn’t think a combined income of $150k was high. I see people every week in exactly the same position. They work
Long hours, have little time off and whereas 12 months ago they could manage, the interest rates and fuel costs are hurting and some don’t have the option to sell and live out in the bush where cheaper housing is.
If attitudes continue like this there will only be 2 classes’ rich and poor which will suite the Corporate bosses who couldn’t give a dam about pensioners.
Tony
May 16th, 2008
Lorikeet
Ken:
I have a disability. Sometimes the use of a clothes dryer is essential to prevent pain – especially if washing more than one load. I put all of the little things in, to minimise the amount of hanging.
It used to rain for weeks here in Queensland, and a clothes dryer used to be essential. I use mine as little as possible, and have it mounted low on the wall to prevent excessive stretching of arms and shoulders.
May 17th, 2008
Lorikeet
Tony:
The first sentence you refer to is a fact. What don’t you understand about it?
I wouldn’t agree to swap financial circumstances with GZG or anyone, since I don’t know what they are.
My point is that people with primary or secondary school aged children on $150,000 need not have a mortgage anywhere near $500,000, unless they’ve blown their money in other ways in previous years.
My son and his wife get quite a bit less than $150,000 (wife works 3 days) and are younger than your example, with significant childcare costs and health insurance, but they have already whittled their mortgage down to size.
They don’t eat out or go to expensive entertainment or children’s activities. My daughter-in-law buys some secondhand clothes and toys in good condition. I knit most of the kids’ jumpers, vests and beanies.
They don’t compete with other parents who put on expensive birthday parties (jumping castles, clowns etc).
They have secondhand furniture and live within their means in other ways, even though they have both had HECS debts to pay (hers is more recent!)
They also live in Canberra where housing prices are higher and heating costs are greater than in Brisbane.
Last Xmas they paid my airfare to Canberra and back so I could see grandchildren.
My son came up to Brisbane for a conference which started yesterday. When I ran this issue past him, he had no compassion at all for the people you described.
Your couple hasn’t a clue what poverty is, but certainly excels at spending, whining and living beyond their means. I’m sure Marilyn would love them.
Perhaps you would do better to try and cadge new voters/members for the DLP from the Liberal Party.
May 20th, 2008
ken
I am not sure the point of the exercise is some form of competition in the morality of grim austerity.
We either acknowldedg that wealth like almost all human endeavorus and traits is relative, for every oen of Tony’s $150k couples their are an equal number of others who would spend that on an annual holiday, equally as marilyn points out there are billiosn in the world who live with alomst nothing. Every oen of us here, simply by being able to contribute to this debate are singularly privelged realtive to alomst everyone else in the world.
You eihter accept that and try to create a scoiety where opportuniyt exists as fairly as possible, alomst impossible but a worthwhile aim, or you seek to belive in dismantling the whole system that has creatd wealth and distribute by way of average and collectvie effort (alwasy of course ensuring those that distribute stay favoured).
These issues, simply put, have been the great philosophical and polcitical struggles of the last two hundred years – the innate and biological individualsim inherent in humasn v collectivism and the Common weal.
Dont ask me for the answer
May 21st, 2008
Lorikeet
Here’s a suggestion. Maybe we should form a group and head off to a soup kitchen. We could serve the homeless a meal and spend a night in their company.
Then we’ll all quickly learn what disability, disadvantage and poverty are – and what it is like trying to survive the elements in the freezing cold – with the possibility of assaults from passers by.
May 21st, 2008
Tony
Lorikeet:
Okay lorikeet everone that has 2 kids and earns a combined income of $150K is fithly rich. All of them have saved huge deposits during their rental and study periods of life and must have inherited large somes of money.
Only you are doing it tough.
The exercise was to show a simple calculation on how a man on ninemsn thought that a combined income of $150K was not rich.
Its certainly not. And even leaving all the other costs out including, Phone, Dry cleaning (would be required for professionals)additonal costs for clothing required for such jobs etc etc etc, including current interest rate they’re just doing it great
Tony
May 21st, 2008
Lorikeet
Tony:
My son and his wife inherited nothing but HECS debts. They bought their own cars, and paid huge Canberra rents while saving a deposit.
My son saved absolutely nothing during his study period because he was poorer than a church mouse. He lived with his parents at home, and seldom went out.
His wife worked through the day and studied at night to improve her employment prospects.
Yes, those who are financially responsible are doing fine on incomes less than $150,000. My son and his wife have even been on overseas trips to USA and NZ.
My daughter-in-law washes all of the clothes. Nothing goes to the cleaners. When she was a child, her family often lived solely on potato cakes when her mother and father could not find work (4 children).
My son and his wife don’t live solely on generic foods now either. The younger child has food allergies and is quite expensive to feed.
When I opened their freezer door, numerous budgetary economies buzzed through my brain. My son likes expensive cuts of meat, but uses tightwad’s toilet paper, with which the money goes 3 times as far.
He is the chief cook and bottle washer, preferring to handwash the dishes and use the dishwasher only to air washed items.
I’ve had a disability which has prevented me from working for 21 years and I’ve had no husband for 11 years.
If you need help with your budget, daughter-in-law, other Grandma and I are more than willing to assist – but I fear you have left it a bit too late. I think interest rates will continue to rise.
Sell your home and move to a lower socio-economic area, where the people are generally nicer and less economically competitive. This should decrease your mortgage by about $150,000.
May 22nd, 2008
ken
Andrew – please save us from this pap. Alternatievly link to softly playing harp music.
May 22nd, 2008
Andrew Bartlett
Thanks for the wake up call – Ken. Given that my post was mostly about Aborginal health and life expectancy, I think we’ve been off-topic for long enough (esp as there’s another thread running specifically about income levels).
I’ll close this one off now.
May 22nd, 2008