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Australia is showing what can be done despite global economic headwinds. Long overdue increases to welfare and raising the single parent benefit eligibility to age 14 (from age 8.) And it's not just single parents: all low income parents get more money from this budget, and unemployment benefit and rent assistance both get boosts. Gas and electricity get subsidies.
Tax revenue is up, due to high primary resource prices, but also due to (believe it or not) inflation. Inflation raises wages, moving taxpayers over-all into higher brackets. Specific raises are in tobacco tax and corporate tax.
THIS BUDGET HAS A SURPLUS. It's the first surplus in 14 years, in Australia.
Australia has been suffering inflation, like every other country, and the Australian Federal Reserve has raised interest rates (also a common response.) But it's cheering to see what US Democrats and Republicans can never bring themselves to do: removing money from the economy, as a supplementary measure to interest rates. The new spending measures (not counting Defense) can be seen as compensation to the worst off, who will suffer along with everyone else from lower growth.
This is the first full Budget of the Albanese (Labor) government. The first Budget has historically been harsh: governments with the luxury of 4 year terms, cut spending or raise taxes in their 'honeymoon' first year. As sure as death and taxes, the last budget of a term will do the opposite.
There were options. Labor could have retrenched much more debt (at this time when debt is relatively expensive). Or they could have spent a lot more. Does a balanced budget with tax raises sound like something you would tolerate in your country, at this time?
www.abc.net.au
thewest.com.au
Tax revenue is up, due to high primary resource prices, but also due to (believe it or not) inflation. Inflation raises wages, moving taxpayers over-all into higher brackets. Specific raises are in tobacco tax and corporate tax.
THIS BUDGET HAS A SURPLUS. It's the first surplus in 14 years, in Australia.
Australia has been suffering inflation, like every other country, and the Australian Federal Reserve has raised interest rates (also a common response.) But it's cheering to see what US Democrats and Republicans can never bring themselves to do: removing money from the economy, as a supplementary measure to interest rates. The new spending measures (not counting Defense) can be seen as compensation to the worst off, who will suffer along with everyone else from lower growth.
This is the first full Budget of the Albanese (Labor) government. The first Budget has historically been harsh: governments with the luxury of 4 year terms, cut spending or raise taxes in their 'honeymoon' first year. As sure as death and taxes, the last budget of a term will do the opposite.
There were options. Labor could have retrenched much more debt (at this time when debt is relatively expensive). Or they could have spent a lot more. Does a balanced budget with tax raises sound like something you would tolerate in your country, at this time?
Treasurer says he has banked a tax boon to close budget's deficit gap
Federal Treasurer Jim Chalmers says he has let most of the money from higher commodity prices and low unemployment "flow through" to the bottom line ahead of unveiling tomorrow's budget.
www.abc.net.au
$2bn boost for green hydrogen revealed in Federal Budget
Households would be able to access cheap loans for solar panels and energy-efficient appliances under a $1.3 billion scheme designed to slash power bills.
thewest.com.au