You didn’t have to look long to find winners in Josh Frydenberg’s fourth budget, a pre-election cash splash designed to target cost-of-living pressures and to reverse the Morrison government’s waning political fortunes.
And like any pre-election budget, this was pitched right at working families, who stand the most to gain from some of the biggest spending measures. They’ll be the main beneficiaries of a $420 increase of the low- and middle-income tax offset, giving up to 10 million people a tax reduction of up to $1500, at a cost of $4.1 billion over the forward estimates.
As flagged over the weekend, there’s a one-off $250 cost-of-living payment, to 6 million recipients of various government payments, worth $1.5 billion.
Then there’s the halving of fuel excise for the next six months, a symbolic measure that may not even be passed on to consumers, at the cost of $5.6 billion.
People with a range of illnesses, such as breast cancer and cystic fibrosis, will benefit from $2.4 billion in spending to list new medicines on the Pharmaceutical Benefits Scheme (PBS). On the mental health front, there’s an additional $547 million in targeted investment.
There’s also some relief for people in flood-hit communities on the east coast, who will get $6 billion in recovery funding, albeit far too late for many.
Once again, there’s a big boost for apprentices, with a $2.8 billion investment to provide payments for new apprentices and subsidies to employers.
And as usual, there’s plenty for the regions, such as the $2 billion Regional Accelerator Program to help regional business grow, which is totally not going to get pork-barrelled. Speaking of pork-barrelling, there’s $7.4 billion for Nationals-friendly dams, including $5.4 billion for Hells Gate Dam in North Queensland.
Watch the government’s big $17.9 billion infrastructure spending for more whiffs of pork, particularly with Queensland getting the most assistance, with NSW and Victoria missing out proportionate to population.
So who exactly loses here? Expenditure on higher education is set to decrease 5.4% since last year, and 3.6% by 2025-26, in spite of a $2.2 billion plan for research commercialisation. Foreign aid, another area frequently abandoned by governments of both stripes, is set to fall 19% over the forward estimates, reflecting the end of additional COVID-related support to the Pacific, just days after a Chinese security pact with the Solomon Islands sent defence circles into a tailspin.
While an extra 50,000 mostly young Australians trying to break into the housing market will benefit from an extension of the Home Guarantee Scheme, allowing them to buy a home with a 5% deposit, it’s little comfort for people locked out because the market is simply too cooked.
As Crikey writes elsewhere, aged care is also a big loser, with the government’s total forecast spending for services in sthe besieged sector increasing by less than 1% compared to the 2021-22 budget.
But losers in this budget are few and far between. That’s the point — the government has an election to win.
The Budget is just smoke and mirrors. It is meant to last until election day. Very little will have occurred by then. After that day it doesn’t matter who wins, the result will be the same. The only people who will benefit, are the politicians who convinced people to vote for them. Politicians get elected to support their party and pay back the organizations that funded their election policies. Governments are not elected to help the public. After watching elections more than 60 years I don’t believe any politicians.
Charles don’t be disheartened, stay hopeful and strong…The worst part of being lied to is knowing you weren’t worth the truth. (Jean-Paul Sartre)
I have seen no mention. Anywhere, except comments by citizens who must have found this info somewhere.
The death of the NRAS social affordability scheme. A Rudd govt intiative, saw new housing Investors subsisided by 25% of build cost, with housing leased to low Income renters at 25% below equivalent local rental costs.
I am a disability support pensioner, existing on a bit under $500 PW. Next year I will transfer to old age pension. I have no savings and no super annuation. So that’s it for me.
Now I’m hearing Nras to be scrapped
When libs first took power after Rudd) Gillard era, the scheme was halted ax to new investments. Which saw empty blocks opposite my then nras home stay that way for over 4 years now, some with siteworks and even one with a pad laid. Left dead in the ground. Funding for existing properties and tenants however continued. .y last contract renewal, last October, Instead of for 12 months was for a very strange 7 month period. Enquiries I made for this change were fobbed off about some rental changes ( which can already occur under current leases, but within the 25% market target.
Now it seems the end of Nras completely has been planned well ahead but mentioned nowhere.
I can’t even afford a decent caravan and caravan park fees are definitely not cheap rental. Great for no ads with lots of super I guess. Anyway I just bought a big tent with my hard fought savings of the last 3 years. I guess soon I’ll be looking for a site to pitch my new home.
Social housing, not the commonwealth govs responsibility it seems.
Footnote. Even though these nras properties have been discounted, they are a strange setup. They are usually a single residential dwelling. Ie. O e land title, one utilities account, elect, water, but they have a dual entrance front door, Immediately inside the front hallway are two more doors, a sit dwelling into units A and B. Usually a 2 bedroom residence and the other a poky o e bedroom residence with a single room fro kitchen lounge dining laundry …
How these kind of shared dwellings can be compared to other market properties like a 2 bedroom or one bedroom flat, which are stand alone rather than a split house confounds me. I wait in trepidation for the end of May to see what my new contract brings.
Considering social housing is becoming more of a talked about issue, I would really like to see some digging I to the mechanics of this scheme and if it is being wound up, how is that going to occur in real terms.