The Budget.

[Iggypoppin']

Peoples thoughts on our new budget? What does this mean for us, our car industry, infrastructure, etc? Please don't turn this into a slanging match it's just peoples thoughts/ideas.

[SB076]

I am concerned with the deficit, apart from that I think its good that they are spending money on transport (road and rail) as thats long over due. Will be interesting to see how other measures effect us, there is nothing in there to help assist the car industry (green car fund is a little different, but it will not ensure that car manufacturers continue to produce cars in oz)

I think they need to remove some of the taxes on our manufacturers so that they can get closer to competing with overseas manufacturers - otherwise the increased unemployment will cost everyone more money.

[merlin]

I think they have really screwed middle and upper Australians with the budget. I am mostly talking about private health insurance rebates here. They have it all backwards - they want people to spend money to support businesses but at the same time take screw the people that actually have the spending power in the first place.

I was REALLY against the handouts in the first place and now we are seeing the impact of handing out money that dosn't exist to win votes - record defecits, cuts to private health insurance, no maternity leave until 2011 ect.

I read that the maternity leave scheme costs $711 million dollars yet they claim not enough money till 2011 to implement it. In the same budget they have allocated $1 BILLION dollars to "indigenous spending". What a crock.

[Paull]

sleep:

[Bmobile]

Originally Posted by merlin

I think they have really screwed middle and upper Australians with the budget. I am mostly talking about private health insurance rebates here. They have it all backwards - they want people to spend money to support businesses but at the same time take screw the people that actually have the spending power in the first place.

I was REALLY against the handouts in the first place and now we are seeing the impact of handing out money that dosn't exist to win votes - record defecits, cuts to private health insurance, no maternity leave until 2011 ect.

I read that the maternity leave scheme costs $711 million dollars yet they claim not enough money till 2011 to implement it. In the same budget they have allocated $1 BILLION dollars to "indigenous spending". What a crock.

I fall into the lower income group, and it has been great to get some cash ect. however I am in no posistion to spend at the moment therefore no good to drive the economy and jobs with spending.

I too am a little worried about the huge deficit, and I don't think they will be able to pull themselves out of it as quick as they would like.
It too seems a little strange that they are screwing the rich as pointed out, they have got the spending power and may not wish to spend as much seeing they are getting screwed.
One thing is they are making it less acctractive to invest in super and higher income earners will therefore see it better to spend the $'s elsewhere and hopefully into investment property or the like and not gobbled up by health insurance.

[ADSXR8]

THis would probably be more suited to The Bar.

But as for my 2c worth. As a NSW Tax payer we once again got f#$%#d over by Labour. Of $22 billion of infracture spending across Australia, Nathan Reece and his team of dead beats had successfully lobbied the Federal Government for $91 million dollars. So again our Federal tax dollars (just like the gst) is being distrubuted across all other states and territory's.

I am just unsure where the crime starts, the disrespect shown by Federal Labour and another proven fact our State government has no idea!

Did anybody hear yesterday, Joe Tropodi and six others just returned from an around the world trip seeking EOI for Electricity Infracture buyers. Cost $290 000.00 for 16 days. $170 000.00 just in airfares...........Who the hell do they think they are! Doing business for NSW flying First Class. Thats what Business Class is for guys! I'm sure if they where paying out of their own pocket, cattle class all the way!

[Geez Louise]

Every single discussion on the current government and what they do just ends up in arguements. I hope this one doesn't but it is a sensitive subject to many seeing as the budget effects everyone. I can't see how this thread will last long without emotions taking over.

I hope I am wrong..

[gtfpv]

my only gripe is .
not all of us are tied to desks for a living . some of us have to work . i have to climb at heights and hang around in the air often in my job it is very physically demanding . heavy engineering trade . i have to be fit to do it .
how are us tradies supposed to do this at age 67 . by 60 most people arent fit enough to do the work i need to do.
can you imagine a builder / or roof tiler working at 67 .

[GT0132]

Originally Posted by gtfpv

my only gripe is .
not all of us are tied to desks for a living . some of us have to work . i have to climb at heights and hang around in the air often in my job it is very physically demanding . heavy engineering trade . i have to be fit to do it .
how are us tradies supposed to do this at age 67 . by 60 most people arent fit enough to do the work i need to do.
can you imagine a builder / or roof tiler working at 67 .

More the point who is gonna want to employ you at that age?

[ADSXR8]

Originally Posted by GT0132

More the point who is gonna want to employ you at that age?

Did you know the retirement age of 65 was set by the Federal Government in 1909, 100 years ago. Back in 1909 the average age of a female was 62, male was 58years old. This is not a joke!

Now average lifespan are in the mid 80's, something like 87 and 84 respectively. So if government was consistant, retirement age would be 95!

[aualright]

Without commenting too much about politics, the revised retirement date doesn't mean you can't retire earlier. With more emphasis on self-funded retirement due to the Superannuation everyone will have (or was supposed to) built up, it is hoped most people will be in a position to choose their time of retirement instead of having to wait until 67. There needs and will be less retirees dependent on the govt in the future, especially since compulsory super would have been in for quite some time by 2023.

As for all the middle class welfare I've enjoyed over the past decade, I have no problem in losing that. In fact, I still can't believe I get 50% rebate on childcare! Crazy stuff.

****

[GT0132]

Originally Posted by aualright

Without commenting too much about politics, the revised retirement date doesn't mean you can't retire earlier. With more emphasis on self-funded retirement due to the Superannuation everyone will have (or was supposed to) built up, it is hoped most people will be in a position to choose their time of retirement instead of having to wait until 67. There needs and will be less retirees dependent on the govt in the future, especially since compulsory super would have been in for quite some time by 2023.

As for all the middle class welfare I've enjoyed over the past decade, I have no problem in losing that. In fact, I still can't believe I get 50% rebate on childcare! Crazy stuff.

****

Sure...you can retire at any age you like provided you can afford it. However you must reach 67 before you can access the pension, provided you pass the income and assets test, and at least 60 (but up to 65 depending on when you were born) to access your super

Those that are up to 5 years out from retirement that have lost half their super fund balance because of the recent GFC and are suffering (or will suffer) poor investmemt returns due to low interest rates will have no option but to rely on the government pension or work longer

[ADSXR8]

Originally Posted by GT0132

GEC

I thought it was the GFC!

Either way, not good news when it has its own acronym.

[GT0132]

Originally Posted by ADSG6ET

I thought it was the GFC!

Either way, not good news when it has its own acronym.

Thanks...youre right...I edited it ...

[Scott]

GEC & GFC are both right. Here is the breakdowon of where we are heading in the next few years is Swan got his forecasting right:

Whole doc here:http://ato.gov.au/budget/2009-10/con...nitiatives.htm

It's interesting to note that between 07/08 and 09/10, we've lost $13b of revenue but are spending $55b more. 95% of the income, 124% of the spend.

[ranger58]

Unfortunately the Government has to try to increase the retirement age, when all the Baby Boomer's are retired not only is there going to be a financial problem (any pensions or other entitlements) there could also be a rather large skills gap in the economy.

As for the rest of the budget what a joke, as a middle class family I was prepared to to be hit hard in this budget, instead there was nothing in this budget that hinders or helps me, a total non-event. The only thing this budget gave me was a large debt inheritance to pass on to my kids.

All this pain for those stupid handouts, most people saved them or if they did spend them they bought imported goods which does little for the economy. The original stimulus packages should have been the infrastructure projects not handouts.

[Scott]

Originally Posted by ranger58

As for the rest of the budget what a joke, as a middle class family I was prepared to to be hit hard in this budget, instead there was nothing in this budget that hinders or helps me, a total non-event. The only thing this budget gave me was a large debt inheritance to pass on to my kids.

My thoughts too. What people get with one hand is taken away with the other. I had *oddly* hoped for some slash and burn but what we got was far from it.

When things are going well, I expect to be looked after - perhaps even half as well as low income earners. But when things go bad, I am prepared to accept a hard line from the Treasurer (even if it is Swan).

In my opinion, this budget is weak and voter friendly ahead of the election. It is not the firm, guiding hand we desperately need.

I'm keen to spend more time looking at the changes to Super - it just puts a sick feeling in my guts so far.

[InTrail]

All the debt we're now incurring adds up to about $9,000 per man, woman & child.

If that's bad, consider the USA where the budgeted debt equates to $35,000 per person.

[Scott]

Originally Posted by InTrail

All the debt we're now incurring adds up to about $9,000 per man, woman & child.

If that's bad, consider the USA where the budgeted debt equates to $35,000 per person.

So that means we're doing good??

[ADSXR8]

Originally Posted by GTP006

So that means we're doing good??

I believe we are. Nowhere near the troubles of America, Asia and UK.

If the government doesn't take these measures of large debt it spells much more heartache for the country.

I also share the opinion of no more stimulas through payments, but more through infrastructure. Something we would not have if it wasn't for those smart pollies post WWII.

[vztrt]

One thing from the budget that may help the car industry.

Sales incentive gets budget boost

Government increases and extends business tax break to stimulate new vehicle sales

By DAVID HASSALL 13 May 2009

LAST night’s federal budget contained a surprise bonus for the car industry with the government announcing it would increase the investment tax break incentive for small business and extend it by six months.

Treasurer Wayne Swan said small businesses would now be able to claim a bonus tax deduction of up to 50 per cent – up from 30 per cent – on the cost of new vehicles acquired after December 13, 2008.

The Small Business and General Business Tax Break was to have ended on June 30, but has been extended to December 31.

The Federal Chamber of Automotive Industries (FCAI), which was concerned that the proposed legislation had yet to be enacted by parliament and was therefore pushing for an extension, has welcomed the government initiative, saying it would provide a valuable incentive for new-vehicle sales.

“The tax break will help stimulate the new vehicle market and support jobs in the industry,” said FCAI chief executive Andrew McKellar.

“Every plumber, every painter, every electrician – in fact any small business owner – is urged to take full advantage of this offer.

“This measure offers an incentive of real value and will encourage small business owners to bring forward purchasing decisions.

“The tax break offers a huge saving on the cost of a new vehicle. It provides a real boost in confidence to small businesses looking to undertake new investment in coming months.”

Car companies will welcome the extra stimulus, but remain keen to see the legislation enacted quickly so they can avoid having to place qualifications on advertisements promoting the tax break.

Toyota Australia executive director David Buttner summed up the problem when he told GoAuto last week: “In any advertising that mentions the investment allowance, we have included an extensive disclaimer that clearly indicates it is a ‘proposed’ measure and depends on it being passed into law. We have also urged potential buyers to seek independent advice as to their eligibility.”

So far, the 30 per cent incentive has failed to ignite sales, with figures for April showing light commercial vehicle sales lagging behind the market average.

If the legislation fails to be passed in both the House of Representatives and the Senate this week, it could be at least another five weeks before it is enacted because the Senate is not due to sit again until June 15.

Budget papers have revealed that the tax deductions will cost the government about $141 million.

“Small businesses are the engine room of the Australian economy, accounting for around 95 per cent of all businesses and around 50 per cent of the all private sector employment,” said the budget papers.

“This will further help them to invest, bolster economic acidity and support Australian jobs.”

[mikestp]

Originally Posted by ADSG6ET

Did you know the retirement age of 65 was set by the Federal Government in 1909, 100 years ago. Back in 1909 the average age of a female was 62, male was 58years old. This is not a joke!

Now average lifespan are in the mid 80's, something like 87 and 84 respectively. So if government was consistant, retirement age would be 95!

I might be missing your point, but aren't average age of a population and average lifespan two different things?

[ranger58]

Originally Posted by InTrail

All the debt we're now incurring adds up to about $9,000 per man, woman & child.

If that's bad, consider the USA where the budgeted debt equates to $35,000 per person.

Here is where I get Scared, true the current amount works out to only $9000 per person, but the interest equates to and extra $500 per person annually. Most of the governments supposed savings doesn't start kicking in till anywhere between late 2011 and 2023. Even then all the figures are based on the economy picking up sharply the year after next (common 26 red).

So what happens if the economy does not recover as wished for/planned. When is the government planning top pay the loans back, are they going to pay interest only or the principal as well. As the loans are mainly from China what happens if our currency become devalued compared to theirs.

[Black F6]

So what happens if the economy does not recover as wished for/planned. When is the government planning top pay the loans back, are they going to pay interest only or the principal as well. As the loans are mainly from China what happens if our currency become devalued compared to theirs.[/QUOTE]


Easy tax hikes

[ADSXR8]

Originally Posted by mikestp

I might be missing your point, but aren't average age of a population and average lifespan two different things?

yes, but I was meaning to talk about average lifespan, not age of population.

[Scott]

Originally Posted by ADSG6ET

I believe we are. Nowhere near the troubles of America, Asia and UK.

More accurately, we're not doing as badly. I don't see why we need to go into the levels of debt that this budget and future estimates takes us to.

[SB076]

Originally Posted by ranger58

Here is where I get Scared, true the current amount works out to only $9000 per person, but the interest equates to and extra $500 per person annually. Most of the governments supposed savings doesn't start kicking in till anywhere between late 2011 and 2023. Even then all the figures are based on the economy picking up sharply the year after next (common 26 red).

So what happens if the economy does not recover as wished for/planned. When is the government planning top pay the loans back, are they going to pay interest only or the principal as well. As the loans are mainly from China what happens if our currency become devalued compared to theirs.

Yes and I would suggest just because the United States is in that much debt, doesnt mean we should follow. Plus by the governments own admissions they expect 1,000,000 people to be unemployed, this will further reduce the governments income (not just through direct tax, but also G.S.T) and increase expenditure.

I would love to see governments getting rid of advisers and the advisers advisers (and all the different groups) There are so many levels of government and they must cost us a fortune.

[4Vman]

This govt frightens me, i've changed tacks, i'm paying off debt as quickly as i can now to live loan/debt free.... No more investment loans.
If i can't pay cash for something i'll go without.
Im not risking my future or placing trust in anyone elses hands at the moment.

[Scott]

Lots of faith in Emperor Rudd & Robin Swan 4V? If the debt isn't scary enough, alcopops could see us rush to an early election...

[PimpMyHubcap]

I`m thinking about helping out Krudd and saving this country so I`m on the lookout for a new XR6T so I can use the new 50% business infrastructure tax break/rebate/saving (call it what you will)

I will feel so much better being in debt and helping the country recover from this GFC. :

Plus I have never had a new car and I am a sole trader.

Cheers
Mick