PARLIAMENTARY REPORT
AUSTRALIA
deeply. But, personally, not for one moment did I doubt the strength of his convictions or his advocacy. He was, as the Prime Minister says, his own man and acted in line with his own views. I note from my personal conversations with Don Randall that he had many sides - some are well known, such as his fierce love of family; some less well known, such as his abiding interest in special education. I regret now that I never followed up his invitation for Gary Gray and I to have lunch with him and his great mate Steve Irons. Perhaps there is a lesson for all of us not to always waste so much energy upon our disagreements.”
Australian Federal Budget 2015
On 12 May 2015 the Treasurer, Hon. Joe Hockey MP delivered the second Budget of the Abbott Liberal/National Government. Mr Hockey’s previous Budget was widely condemned as harsh and unfair. As a result, the government suffered a significant fall in its electoral standing with many polls showing that the Labor Opposition could win an election. The 2015 Budget sought to reverse this position by withdrawing unpopular measures and introducing a range of spending proposals. Mr Hockey referred to his 2015 Budget as the ‘have a go budget’.
The Australian economy is entering its 25th
year of
economic expansion with real GDP growth for 2015- 16 forecast to grow by 2¾% rising to 3¼% in 2016-17. The underlying cash deficit in 2015-16 is expected to be A$35.1 billion which is 2.1% of GDP. The deficit is expected to reduce to A$6.9 billion by 2018- 19. The unemployment rate is hovering around 6¼%. The consumer price index was 1¾
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for 2014-15 which is forecast to increase to 2½% for 2015-16. Mr Hockey noted the
economic challenges faced by Australia include a dramatic fall in iron ore prices, weaker than expected global demand and falling revenue. Mr Hockey stated that “even in the face of the largest fall in our terms of trade in half a century, which has contributed to a significant fall in tax receipts, our economic plan has helped Australia to have one of the fastest growing economies in the developed world.”
One of the focus areas for the government is assisting small businesses to grow and invest. Mr Hockey announced that “from 1 July this year, small companies with annual turnover of less than A$2 million will have their tax rate lowered, from 30% to 28½%.”
Mr Hockey noted that this was the lowest company tax rate in almost 50 years. In addition to this measure, Mr Hockey announced that small business can claim an immediate tax deduction for each and every item they purchase up to A$20 000. Mr Hockey’s clear message to small businesses was to expand, innovate and create new jobs.
Parts of Queensland and New South Wales are in drought which is creating significant pressure for farming communities. Mr Hockey announced that the government would commit over A$300 million in drought assistance. In addition, to cope with future droughts, Mr Hockey announced that “all farmers will get an immediate tax deduction for new investment in water facilities and a three-year depreciation allowance for all capital expenditure on fodder storage assets.”
In relation to retirement policy, Mr Hockey announced
that there would be no new taxes on superannuation. For those people reliant on the Age Pension, Mr Hockey noted that this would continue to increase, twice a year at the highest available indexation rate. The Age Pension at an annual cost of A$44 billion is the Budget’s biggest item of expenditure. In order to ensure that the pension is sustainable over time, Mr Hockey announced that “from 1 January 2017, we will make changes that benefit pensioners with fewer assets beyond the family home. But we will also tighten eligibility for those pensioners with higher levels of assets.” The Leader of the Opposition, Hon. Bill Shorten MP in his Budget reply speech commented that “the 2015 budget has neither the qualities nor the priorities of the Australian people. Australians awaited this budget in fear, anticipation and hope - fear that the unfairness and cruelty of last year’s budget would be repeated; anticipation that it might not; hope that the government would at last, after 613 days, get the economy right. But once again, in every way, this government let Australia down. The test for this budget was to plan for the future, to lift productivity, to create jobs, to boost investment, to turbocharge confidence for the years and decades ahead, to restore hope, but this budget fails every test.”
In relation to the size of the government’s stimulus package, Mr Shorten commented that “the sum total of this government’s stimulus is a A$5.1 billion deposit against a A$96 billion withdrawal. Is the Treasurer seriously asking Australians to believe that this is the best he can do in response to a A$96 billion withdrawal?” Mr Shorten noted that “this budget drops the ball on reform,
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