Wednesday, May 15, 2013

2013 Australian Budget

My really take on the 2013 Australian Budget. I think it was a good tactical budget by the Labor Party and will help them going forward.

The reasons are

  • Scrapping Baby Bonus is okay as the current perception is that it will reduced large handouts to ethnic immigrants who have 9 or 10 kids. They will still vote for labor anyway. Because of the family Tax benefit.
  • Adding NDIS and Gonski as policies that are labor meme's
  • Reducing Foreign Aid always good in attracting votes
  • Increase Tax compliance for big corporations. If targeted banks it would go down even better
  • Main reason though is not leaving much for the Liberal Party to work with except for adding negative votes in the policies that will reduce the budget i.e reducing government workforce

Huge credibility gap though in the budget forecast figures and actions speak louder then words. Its been really funny trying to work out what is the actual deficit as it kept changing week by week by really significant numbers. You can't believe figures given based on past history. 

I don't believe they will get 4 billion from large company tax as they are find smarter ways of reducing their tax burden. 

If really interested in reducing budget deficit they would get of negative gearing but those are the people that both labor and liberal need. I am sure that is also what is keeping the Housing Boom from collapsing.

Why are people so afraid of the Liberal party as interview with Joe hocking seemed to make so much sense e.g should compare unemployment with main competition i.e Asia not Europe and deficits do have to be paid back. Maybe afraid of entitlements and Labor Government spending does help a lot of small businesses by giving money to the people.

Labor is still screwed in the September elections and I have a feeling they are playing for the next elections which to me is the best move.


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