Prime Minister Malcolm Turnbull is in serious trouble. Labor holds an election-winning polling lead of 52%-48% less than nine weeks from election day. Voters are rapidly souring on him, and Bill Shorten, once heartily disliked by voters even when Labor was ahead of the Abbott government, is slowly rebuilding his appeal to the electorate. Worse, Labor has bested the Coalition in the battle of ideas and led the policy debate. None of this is what anyone — even Labor — expected when Malcolm Turnbull replaced Tony Abbott last September. Turnbull was expected to easily outshine the stolid Shorten and lead Australia into a new, reform-minded era of smart policymaking and sensible debate.
And the policy landscape has also shifted against the Coalition. Voters are angry about the unfairness of a tax system that allows the world’s biggest companies to pay zero tax and high-income earners to exploit loopholes both abroad and in our superannuation system to minimise their tax. Voters’ idea of tax reform is to make big companies and the rich pay more tax, not less.
Much of tonight’s budget will be devoted to securing the government’s defences against Labor attacks that exploit this. There is expected to be another high-profile crackdown on multinational tax avoidance — something Joe Hockey announced right before the 2015 budget as well (we’ll see if Morrison makes Hockey’s mistake of refusing to put a dollar figure on the sums raised by his measures, depriving the policy of much of its political impact). Labor has had a field day exploiting multinational tax avoidance, painting the government as too close to the big end of town and its mates at the Business Council (which is easily done because that is indeed true).
Measures to curtail the exploitation of superannuation tax concessions by high-income earners are also intended to head off Labor’s success on that front — remember that, at the end of 2013, then-treasurer Joe Hockey and his assistant minister Arthur Sinodinos proudly announced they were abandoning Labor’s measures addressing the exploitation of super tax concessions, and were roundly applauded by the Business Council for doing so. The Abbott government’s attempt to kill off the low income superannuation contribution (LISC) is also set to be reversed (along with a rebadging).
Add in the limited increase in schools funding to deal with Labor’s Gonski funding commitments and the wholesale adoption of Labor’s tobacco excise increase (complete with confected “budget blackhole” story dropped to the media) and this budget — much like last year’s — will look a lot like a stereotyped “Labor budget” of conservative mythmaking: lots of taxes (the government is planning to tax Australia at a far higher proportion of GDP than Labor did under Rudd and Gillard) and lots of spending (ditto). To the extent it also invests in urban infrastructure, that will only reinforce the fact that much of the budget is about stealing Labor’s more fashionable clothes.
These defensive policies aren’t enough — Turnbull needs to get on the offensive. There’s no evidence of any shift in voter sentiment around negative gearing — unsurprisingly, given the government has been unable to focus on its scare campaign for any length of time. There’s still time for that campaign to work. But more disturbingly, it appears from today’s Essential Report poll that Labor’s bravery on climate policy may not merely not be a negative, but might actually be popular with voters.
The budget thus also needs to bring an end to Turnbull’s policy dithering and assert a clear narrative about where he wants to take Australia. “Jobs and growth” won’t do it (they may as well throw in “motherhood” as well). Just as Morrison is rehashing Hockey’s multinational tax hit, there’ll likely be a rehash of last year’s “Tony’s tradies” handouts and more tax cuts for small business — the altar at which all politicians must genuflect. That budget at least staunched the bleeding for the Abbott government, before its own ineptitude restored it to the path of self-destruction. Turnbull and Morrison will plainly be hoping that, at the very least, reheating last year’s approach will work until July 2, and they can worry about the rest after that. But handouts for small business isn’t a compelling narrative of the kind Turnbull seemed to promise when he became Prime Minister, of the kind the absence of which has so disappointed the electorate since then.
The Prime Minister needs to give voters some substance, to offer a clear agenda beyond buzzwords, cliches and attacks on Labor. The extent to which tonight’s effort is able to do that — rather than merely stop the bleeding with some cleverly targeted political measures — is likely to determine whether he can halt the trend to Labor and regain an election-winning lead.
“None of this is what anyone — even Labor — expected when Malcolm Turnbull replaced Tony Abbott last September. Turnbull was expected to easily outshine the stolid Shorten and lead Australia into a new, reform-minded era of smart policymaking and sensible debate.”
Why was everyone so mislead? Did the commentariat think that Abbott alone was the problem? Did everyone forget, in the euphoria of Abbott’s departure, that there were still 44 who had voted for him and then the NP had ten conditions to lay on Turnbull?
I know hindsight is a wonderful 20/20 phenomenon. But just why was Turnbull so wrongly assessed? Triumph of hope over experience?
It was mentally constipated, the terminally näive and the politically uneducated footy lovers who dreamed a change in leadership would achieve anything. The Party didn’t change all that happened, no, they merely got out a decent suit.
Venise , I completely agree that the tax-free status of religions should end now but politically uneducated footy lovers would not have wanted to see Tones replaced….ever !
Some of us remain unsurprised by the Member for Goldman Sachs and his Loon Pond compadres.
The Liberal Party – delivering yesterday, tomorrow – drive reform ? LOL.
The consensus seems to be that an election will be held on 2 July in which case there is only a gap of about eight weeks between Budget and election. Does anyone other than the terminally naive really believe that this Budget will be no more than fairy dust to tide them over until July 3, at which time the “real” budget will be produced.
As MJM points out, the reactionary core of the LNP is still there, and they only got rid of Abbott because 50 polls in a row told them they would be out on the ears if he stayed as PM. Changing the leader has not changed the policy, where one can even locate such a beast. They are still the same reactionary neanderthals they have always been.
‘Turnbull’s election fightback must start tonight…’
I hope not. I want to see the end of these wankers.
Maybe in the new Crikey layout they can add a “+1” function. I’m not big on social media wankery, but if ever there was a post that warranted a “thumbs up” or whatever, it’s this one.
Concur, sooner they’re gone the better. I’m a swinging voter and I’ve already decided who I’m voting for, and it’s not Malcolm’s bunch. I’m not a fan of Bill Shorten but I like Labor’s policies. The next two months of electioneering is going to turn my brain to mush. And as for Bernard – poor bastard!
MJM – indeed, I was one who hoped for fresh leadership and direction. Now, I do not expect this to happen. Turnbull has to be the nation’s biggest disappointment. All piss and wind.
What to do? A vote for Shorten is a vote for the CFMEU. A vote for the Greens will flow to the LNP.
I might stay in bed.
[A vote for the Greens will flow to the LNP.]
Can’t just let that sit there. Why would a Greens vote flow to the LNP? You are entirely in control of your own preferences, even above the line on the Senate paper.
Xoanon…..BULLS+IT!!!
‘Why would a Greens vote flow to the LNP?’ Because that is the way the grubby deals are being done!!
The vast majority of the sheeples will preference how they are instructed to by their beloved Greens. Wake up Australia!!!!
Does not change the fact that the voter is in complete control of their own preferences, CML.
I know how you feel. For much of the last nine years I have lived outside Australia (working on an aid project that is about to die from lack of funds and a change of direction from aid to trade). In 2007 I went to enormous lengths to lodge a postal vote; in 2010 I went to the capital and voted at the embassy; in 2013 faced with a voice between Rudd and Abbott I exercised an option not to vote. But I must say I have regretted it. My vote would have made no difference to the outcome in my electorate. But Abbott became PM and I do regret that. So on July 2, or whenever the election is held, I will again make an effort to vote. And it will not be for an LNP candidate.
choice not voice.
A vote for the Greens will flow to whoever you preference. You control that.
I wish to volunteer a prediction. If the budget imposes taxation on the churches it will signal an indication of a progressive Party, intent on a no buggerising around, determination to get this country out of a hole. If, however, the churches remain unscathed, it will signal a gutless subservient grovel to the lunatic religious right. A Party which will not deserve to remain in power. Cory Bernardi and Senator Christiansen take a bow.