Debt and Deficit - Coalition Budget Emergency

[midorigreenwood]

http://m.smh.com.au/federal-politic...crease-to-the-petrol-tax-20150623-ghv2r6.html

Looks like labor were backfooted by the greens supporting the pension measure and have backed away from opposition for the sake of opposition for the moment...

Di Natale had already telegraphed supporting petrol tax indexation so labor obviously didn't want to be caught with their pants down again.

 

[Ratts of Tobruk]

http://m.smh.com.au/federal-politic...crease-to-the-petrol-tax-20150623-ghv2r6.html

Looks like labor were backfooted by the greens supporting the pension measure and have backed away from opposition for the sake of opposition for the moment...

Di Natale had already telegraphed supporting petrol tax indexation so labor obviously didn't want to be caught with their pants down again.

No doubt it sped up their response, but when the Libs fiddled with the rules it majorly increased the chances of it being passed. The alternative was for the tax already paid by motorists to be given to the petrol companies. That doubled-down the 'bad look' for Labor and especially the Greens.

 

[yibbida]

http://www.theguardian.com/commenti...bt-and-deficit-reduction-but-few-have-noticed

In less than two years in office, the Abbott government has added almost $100bn to the level of Commonwealth government debt. This is a 35% increase from the $273bn level of gross government debt at the time of the September 2013 election.

By the time the next election is held, most likely in the latter part of 2016, the Budget papers indicate the Abbott government will have increased government debt by around $150bn in its three years in power and three years of implementing its economic policy objectives.

Policy changes after the election of the Abbott government have seen government spending rise 7.8% in real terms in 2013-14 and it is forecast in the budget to increase in every year thereafter. In 2014-15 and 2015-16, government spending will be 25.9% of GDP, a quite stunning 1.8 percentage points higher than the level in the last full year of the previous government

 

[geelong_boy]

No doubt Captain Australia will simply wave away those figures as being untrue.

 

[Power Raid]

our debt is a disgrace

the only solution now is simply don't hold our currency or have debt. our youth will suffer for decades to come.

 

[Sugar2Sideshow]

I'm assuming there are issues with it, but why can't the government just say. "In 20(07?) spending started becoming out of control so we are going to go back to the budget measures in the year before that, obviously adjusted for inflation." I mean, if it was good enough for us 10 years ago shouldn't it be good enough for us now?

If we assume that the labor spending during the gfc was a once off in order to save the economy, surely the measures put in place then don't apply now so we can cut back on it.

 

[Ratts of Tobruk]

I'm assuming there are issues with it, but why can't the government just say. "In 20(07?) spending started becoming out of control so we are going to go back to the budget measures in the year before that, obviously adjusted for inflation." I mean, if it was good enough for us 10 years ago shouldn't it be good enough for us now?

If we assume that the labor spending during the gfc was a once off in order to save the economy, surely the measures put in place then don't apply now so we can cut back on it.

It was actually the tax cuts proposed by Costello/Howard and matched by Rudd (because it's hard to win an election against income tax cuts) that caused the major long-term 'structural' problem, so you're right we could just go back to those tax levels.

On other policies and adjustments, however, you would actually want to keep most of what Labor put in place. They cut a lot of spending and weren't as generous as the Coalition made out. That's why Abbott and friends have increased our levels of debt even while losing all their political capital; there simply weren't any easy savings to be made. Labor had already used 'efficiency dividends' and made (relatively) 'tough calls' like moving single mothers onto New Start once their kids turned 6.

But I agree that a return to those levels of income tax should be fine. The NDIS is a big-cost that has been introduced, and most people think it is necessary, so we could keep the extra 0.5% Medicare levy and then look at the numbers. It would be good to bring in Gonski if affordable. As well as the cost-saving measures Labor would've kept if elected, like removing the no-questions-asked threshold for Fringe Benefits Tax, we still might need a consumption tax (the Carbon tax acts the same way as a GST so you can look at either or a combination to ensure we get a good environmental outcome at the same time as hitting up the poor more for tax).

 

[Play by Numbers]

our debt is a disgrace

the only solution now is simply don't hold our currency or have debt. our youth will suffer for decades to come.

No they won't.

Australias real debt problem is private debt.

Cuts to the safety net, which Abbott has attempted despite not cutting spending, only increase this problem.

The unwillingness to tackle the housing bubble and its strangling effect of growth and competitiveness, will backfire when it all falls apart and we have tens of thousands of households holding billions in debt unable to service it.

 

[Power Raid]

No they won't.

Australias real debt problem is private debt.

Cuts to the safety net, which Abbott has attempted despite not cutting spending, only increase this problem.

The unwillingness to tackle the housing bubble and its strangling effect of growth and competitiveness, will backfire when it all falls apart and we have tens of thousands of households holding billions in debt unable to service it.

our youth won't have to pay off private debt but they will have to pay off our public debt. they will do this through higher taxes, lower wages and less opportunity.

 

[Ratts of Tobruk]

No they won't.

Australias real debt problem is private debt.

Cuts to the safety net, which Abbott has attempted despite not cutting spending, only increase this problem.

The unwillingness to tackle the housing bubble and its strangling effect of growth and competitiveness, will backfire when it all falls apart and we have tens of thousands of households holding billions in debt unable to service it.

Power Raid is a retiree - everyone is a "youth" to him.

 

[Power Raid]

Power Raid is a retiree - everyone is a "youth" to him.

lol Ratts

 

[RightorKhan]

Wtf it takes Labour 7 years to spend $273bn and these clowns rack up $100bn in only 22 months?? We're not even in a gfc ffs.

Makes you think where the money from these savage cuts is really going.

 

[Gough]

Doesn't matter, most likely you'll be killed by a jihadist tomorrow, so you won't have to worry about it.

 

[Slax]

We need to have a complete overhaul of the tax system. Costello/Howard did so much damage to Australia long term with massive tax cuts that it will tax either small incremental tax increase or a complete overhaul to fix. We wasted the biggest growth period in 40 years on tax cuts and now have nothing to show for it rather than building infrastructure.

We need to increase the GST, overhaul personal tax rates to compensate. Remove all tax concession for non-residents, simplify the tax concessions system and fix the superannuation tax problem.

Negative gearing for Australian tax residents is not as big an issue as many make it out to be, the superannuation tax loop holes are much bigger. Removing negative gearing for non-residents will impact the housing market, but not to the same extent as a total removal, it will most likely mean a stagnation of the market as the benefits of buying here are now gone for foreign investors so they will look to sell. This will provide the correction required without leaving the average home owner with negative equity, which is the worst possible scenario.

 

[rodney hoo]

We need to have a complete overhaul of the tax system. Costello/Howard did so much damage to Australia long term with massive tax cuts that it will tax either small incremental tax increase or a complete overhaul to fix. We wasted the biggest growth period in 40 years on tax cuts and now have nothing to show for it rather than building infrastructure.

We need to increase the GST, overhaul personal tax rates to compensate. Remove all tax concession for non-residents, simplify the tax concessions system and fix the superannuation tax problem.

Negative gearing for Australian tax residents is not as big an issue as many make it out to be, the superannuation tax loop holes are much bigger. Removing negative gearing for non-residents will impact the housing market, but not to the same extent as a total removal, it will most likely mean a stagnation of the market as the benefits of buying here are now gone for foreign investors so they will look to sell. This will provide the correction required without leaving the average home owner with negative equity, which is the worst possible scenario.

Let's just hope we can find another Paul Keating,who had the balls to take things head on and explain it to the punters despite of the negative right wing press. Slax you seem switched on maybe you could be the man.

 

[Slax]

Let's just hope we can find another Paul Keating,who had the balls to take things head on and explain it to the punters despite of the negative right wing press. Slax you seem switched on maybe you could be the man.

Was actually a member of the ALP and quit in disgust at the fact that people only wanted to compete for public office because of the pay and perks or to look after business interests they could foster as a politician, not because they wanted to make Australia a better place. We currently have only about 10 politicians in both houses who are actually there to try and make Australia a better place and currently none are in a position where they can really achieve anything meaningful because those who run the two main parties are looking after their interests and the interests of their mates.

There are a contingent in Canberra who went there with honourable intentions but have just become part of the two party machine and lost their way, as it was easier just to become part of the machine than actually stand up to the machine. Malcolm Turnbull is now looking like he has also joined this group.

 

[Gough]

Apparently if we can get cheap groceries we'll avoid problems facing Greece, and China. PM highlighting his economic credentials again.

 

[RUNVS]

Negative gearing needs to be removed, income tax needs to be increased to all but the bottom bracket and GST needs to go up 2%.

 

[Lebbo73]

Negative gearing needs to be removed, income tax needs to be increased to all but the bottom bracket and GST needs to go up 2%.

I don't know much about negative gearing but the rest your post has to be taking the piss right? Surely you ain't serious? There is nothing like a little Greekconomics to get the economy rolling hey Runs!
How about we increase the GST to 20% and apply it to everything? On one condition, income tax rates are decreased by at least 10% in every bracket above the zero rate!

 

[Play by Numbers]

our youth won't have to pay off private debt but they will have to pay off our public debt. they will do this through higher taxes, lower wages and less opportunity.

Of course they will have a larger private debt burden. Rising house prices, expensive goods driven up by the price of rentals, stagnant wages, due to low diversity and growth, increased cost of medical care, insurance and education if this government pushes forward with it's agenda.

And come housing crash, what about tax payer bailouts?

It's private or household debt that is the enemy, not government debt, which can be managed via currency controls, taxation and inflation. Sound macroeconomic management and dealing with the property crisis is far more important than our low gov debt levels, however debt does not go away. If you cut public spending, that debt transfers to households and private alternatives are usually more costly.

An over leveraged population risks crossing a threshold that could spell tragedy post market crash.

 

[Play by Numbers]

I don't know much about negative gearing but the rest your post has to be taking the piss right? Surely you ain't serious? There is nothing like a little Greekconomics to get the economy rolling hey Runs!
How about we increase the GST to 20% and apply it to everything? On one condition, income tax rates are decreased by at least 10% in every bracket above the zero rate!

That isn't Greekonomics, in fact the opposite.

Greeces main problem is tax avoidance.

 

[Play by Numbers]

Apparently if we can get cheap groceries we'll avoid problems facing Greece, and China. PM highlighting his economic credentials again.

We can get cheaper groceries if we stop rorting by distributors and supermarkets and legislate against anti competitive behavior. The opposite of what this gov will do.

 

[Play by Numbers]

We need to have a complete overhaul of the tax system. Costello/Howard did so much damage to Australia long term with massive tax cuts that it will tax either small incremental tax increase or a complete overhaul to fix. We wasted the biggest growth period in 40 years on tax cuts and now have nothing to show for it rather than building infrastructure.

We need to increase the GST, overhaul personal tax rates to compensate. Remove all tax concession for non-residents, simplify the tax concessions system and fix the superannuation tax problem.

Negative gearing for Australian tax residents is not as big an issue as many make it out to be, the superannuation tax loop holes are much bigger. Removing negative gearing for non-residents will impact the housing market, but not to the same extent as a total removal, it will most likely mean a stagnation of the market as the benefits of buying here are now gone for foreign investors so they will look to sell. This will provide the correction required without leaving the average home owner with negative equity, which is the worst possible scenario.

Read the Guardian today. Productivity Commission has said super concessions are a huge burden, unsustainable and largely only benefit the rich.

But Abbott has ruled out changes.

 

[Slax]

Read the Guardian today. Productivity Commission has said super concessions are a huge burden, unsustainable and largely only benefit the rich.

But Abbott has ruled out changes.

Of course won't make changes because that would mean that the impact is felt my Liberal voters rather than making cuts to government services which will instead have a bigger impact on Labor voters.

Abbott does not care about what sort of country he leaves his daughters with.

 

[Maggie5]

Promised today that they are not Labor will not touch super. I think they must have forgotten that they already have. Frozen employer SG at 9% until 2017? In the previous budget.
Possibly doesn't' count though as only affects those on wages.