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Federal
Opposition's Response
Budget
Address In Reply - Kim Beazley's Speech
In Kim Beazley's Budget Address In Reply he said
our great country is about to enter the second decade
of conservative rule. History will mark 1996 to 2006
as the Liberal/National Government's decade of deception.
Year after year of lowering the 'truth' bar then deliberately
crawling under it.
He said with one common theme — the Government
deceives, and Australians pay. But Mr Speaker, this
year we've learned why this Government has been so
deceitful. We uncover their motive with each new economic
indicator: With one of the highest foreign debt levels
in the world; with a record current account deficit;
with household debt rising and rising.
Mr Beazley set out Opposition's response to the Budget
including tax cuts, welfare reform, skills, training,
infrastructure and the Future Fund.
Key
elements of Mr Beazley's response include:
Tax
Reform
The
Government should raise the threshold where the 30c
rate cuts in from $21,600 to $26,400. It should implement
a welfare to work bonus that would provide an effective
$10,000 tax free threshold for people earning up to
$20,000 per year.
It
should avoid delivering any fiscal stimulus while
the economy stays in the red zone of a potential interest
rate rise in the second half of 2005. There is simply
no benefit in giving families a $6 a week tax cut
if that tips the Reserve Bank over the edge into raising
interest rates. After all, one interest rate increase
will raise monthly mortgage repayments for a $300,000
mortgage by $48 — almost twice the size of the
$6 weekly tax cut.
These
changes should take effect from 1 January 2006.
In
addition, from 1 July 2006 the Government should:
* Raise the threshold where the 42c rate cuts in from
$63,000 to $67,000, and
* Raise the threshold where the 47c rate cuts in from
$80,000 to $100,000.
This
package would deliver a tax cut of up to $9 for those
earning up to $25,000 — double what the Government
is offering.
It
would deliver a $12 tax cut for those earning from
$25,000 to $70,000 — double what the Government
is offering.
It
would preserve the Government's tax cut for people
earning from $70,000 up to $105,000. We recognise
that people on around $80,000 aren't rich, but politicians
on $105,000 and over are doing alright. This package
would deliver $40 to people who earn $105,000 and
above - one third less than what the Government is
offering, a much fairer outcome.
A
worker or single income family on average weekly earnings
will over the next four years gain $1248 in tax cuts
from the Government.
How
much from Labor's plan? - $2,184 in tax cuts. About
$936 dollars more under Labor for middle Australia.
A
dual income family on $85,000 will over the next four
years gain $2,496 from the Government.
How
much from Labor's plan? $4368 in tax cuts. About $1872
under Labor for middle Australian families.
Labor's
Tax Proposal: Fair, Responsible — And Real Reform
Labor
Marginal Tax Rates (35KB
PDF File)
Welfare
Reform
A
genuine effort to help get them into paid work involves
taking practical steps to make it easier for employers
to hire people with disabilities.
Welfare
recipients often require training, and are not job
ready. The lack of affordable childcare is also a
major barrier to them working. The Government is offering
only small childcare and training measures in this
Budget that don't do enough to address the real challenges
of getting these Australians into lasting work.
In
practical terms, the main impact of the package is
to shift disability support pensioners and sole parents
onto the dole, where the Government will save up to
$77 per fortnight.
Infrastructure
Labor
would set up a national infrastructure council to
be known as Infrastructure Australia.
With
input and representation from the private and public
sectors, Infrastructure Australia would provide ongoing
advice to all Australian governments — Commonwealth,
State and territory — on the adequacy of what
infrastructure we have and to develop a blueprint
for the future.
Infrastructure
Australia would be a standing item on the agenda of
the Council of Australian Governments, and would bring
provide regular reports to that body. I can't understand
why the Government remains deaf to the calls from
business for such a body.
If
we get the policy settings right — through the
establishment Infrastructure Australia — we
can unlock investment in roads, rail, ports, communications,
and energy networks. This will lift the speed limit
of the economy and be a strong foundation for Australia's
future prosperity
Announcement
Of Infrastructure Australia
Infrastructure
Australia Fact Sheet (90 KB PDF
File)
Kim
Beazley's Full Budget Address In Reply is available
here.
Budget
Night Response
On
Budget night Labor's Shadow Treasurer, Wayne Swan,
said the Budget irresponsibly squanders the opportunity
to secure Australia's future prosperity.
He
said it fails to set out a plan to invest unexpectedly
strong revenue, from record terms of trade and generally
strong economic conditions, in the key drivers of
growth — that is irresponsible.
Wayne
Swan said the Budget fails to put downward pressure
on inflation and interest rates, and squanders the
opportunity to address our urgent economic challenges.
He
said a responsible Budget would have invested in our
infrastructure needs and training for Australian workers,
and provided genuine incentive in the tax system.
The
full statement by Wayne Swan, Shadow Treasurer, is
available here: An
Opportunity Irresponsibly Squandered
Labor
Budget Attachments (170KB
PDF file)
The 2005-06 Budget provides for an underlying cash
surplus of $8.9 billion
