Tomorrow night the Morrison government will deliver its fourth federal budget, a chance to splash some cash around in time for an election where hip-pocket issues are set to dominate.
Like most budgets, many big-ticket items have been dropped to the media well ahead of Treasurer Josh Frydenberg’s big speech. Here are a few things we’ve learnt so far:
Cost of living
The flow-on effect from the war in Ukraine, the pandemic, and the devastating floods on the east coast have combined to push up cost-of-living pressures. To help ease the blow, the government is set to temporarily reduce the 44.2 cents a litre fuel excise for at least six months.
There’s a one-off $250 cash bonus for pensioners and other people on income support in the works, and the first-homebuyer’s guarantee scheme, which helps people into the property market on a 5% deposit, will be expanded from 20,000 to 50,000 places.
But it’s still unclear whether the $1080 low- and middle-income tax offset will be extended for another year.
Infrastructure
This morning the government announced a series of big infrastructure spending blitzes across the states and territories worth a total $17.9 billion. How good is Queensland? The sunshine state is set to win out, with $3.9 billion in spending including a rail line connecting Brisbane and the Sunshine Coast, and money earmarked for the 2032 Olympics. NSW and Victoria will get $3.3 billion each to expand road and rail infrastructure.
Also flagged is money for a couple of favourite National Party boondoggles in North Queensland. Deputy Prime Minister Barnaby Joyce has promised $483 million for Urannah Dam, a gift to the mining industry, despite questions about its business case. On Friday the government committed $5.4 billion to build Hells Gates Dam, despite no final business case or environmental approval.
Defence
With war in Ukraine and a political drive to wedge Labor on national security before the election, the government has been beating the Defence drum. Two weeks ago, Prime Minister Scott Morrison announced a massive $38 billion plan to boost the Defence workforce to more than 100,000 people by 2040.
And last week Defence Minister Peter Dutton committed $875 million towards upgrading military bases around the country.
There’s also a $4.3 billion plan for naval shipbuilding in Western Australia, and $10 billion to build a submarine base for the promised AUKUS nuclear boats somewhere in Queensland or NSW.
The government has committed $105 million to assisting the war in Ukraine.
Health
In a budget that will be about projecting a triumphant, post-pandemic future, expect far less explicit COVID talk in Frydenberg’s speech than his last two outings. A big hint is in the pre-budget health announcements. Over the past few days, we’ve heard of $58 million to support people with endometriosis, $475 million to subsidise the cost of cystic fibrosis drugs, and $206 million for youth mental health.
Closer to the COVID front, there’s a 10-year, $1.5 billion strategic partnership with Moderna to produce 100 million mRNA vaccine doses locally.
Education
Over the weekend the government announced a $365 million package to help create another 35,000 apprenticeships.
Changes to the childcare subsidy will be brought forward from July to March at a cost of $224 million this financial year, and $670 million a year from then.
Beer
A 50% cut to the federal excise on tap beer was flagged two weeks ago.
Editor’s Note: A previous version of this story referred to an additional $6.4 billion for independent schools. There has been no additional funding announcement for independent schools.
How cheaply and easily we can be bought. And how little we are able to consider the long term interest of the nation.
Since when have the real interests of the people coincided with the short-term desires of politicians to be re-elected by bribing us with our own money?
We? This is a straight out attempt to appease the bogan demographic. The same group of people that actually decide elections in this country. The same aspirationals and “hard working Australians” who were worried about their weekends and $70,000 dual cab diesel utes being taken away by the electric vehicle bogeyman last election. The same group who decry any form of welfare, especially to the undeserving, while screaming for handouts and tax breaks for their deserving selves.
With the government cutting petrol excise spare a thought for the Victorian electric car owners who are being taxed at three times the rate of the petrol excise.
The penalty for being an early adopter. You always pay more.
How did you calculate that.?
Prediction. The Coalition will sell a cut in fuel excise as a temporary responsible budget measure. Then if Labor win the next election any move to increase the excise to it’s previous level will be met with howls of Labor increasing taxes again.
Nothing about cigarettes. When I was a boy the price inelasticity of beer, petrol and cigarettes was a tremendous attraction for governments who ruthlessly hiked them up every budget. Maybe they should put up the price of cigarettes if they are reducing the other two.
It wouldnt surprise me if Fraud and co have never heard of price inelasticity.
Cigarettes have increased in price recently.
Independent Schools? Why is the Federal Government paying even a single cent to them? Let the parents pay the costs in full of sending their offspring to these and use the funds in the public school system.