Friday 27 2018
The Government would have us believe the economy is in such fine shape, that despite adding 5 million dollars a day to the national debt, it can afford to drop the tax, in the form of a levy, on Medicare. Sorry for that. It has saved 5 billion on something that didn’t exist. It’s a bit of a Claytons tax on tax approach that was never going to pass the Senate.
The Government is already throwing out signals that this will be a giveaway budget, full of goodies to bribe the electorate into believing that after almost six years we have made a remarkable recovery without doing anything. We will even return to a surplus on time. It’s enough to get you dancing in the streets.
I find that a bit hard to digest. It is only a short time ago that they were telling us the economy was a cot-case. A disaster of the first order. Remember how they drove around in a truck with a dial indicating that we were at the abyss of a global meltdown.
How has this remarkable turnaround been achieved and how can we drop the Medicare levy and still pay for the cost of administering the NDIS. Well, we don’t know and we won’t know until the budget. But of course cynical minds like my own would question if the available funding for the NDIS will be adequate for its needs. There are many in the sector who say no. At the moment the Finance Department has an employment cap on them.
I think we can now be assured that we are heading toward an election in August/September of 2018. John Howard always had enough money to buy his election wins. We will be able to afford it all plus the huge tax cuts to the businesses who don’t pay tax and those who break the law to ensure they maximise profits.
Undoubtedly we will be subjected to a barrage of self-congratulatory words from the likes of those ministers with the loudest mouths and the fastest tongues.
“We are now in a position to give our guarantee to Australians living with a disability and their families and carers that all planned expenditure on the NDIS will be able to be met in this year’s budget and beyond without any longer having to increase the Medicare levy. This is the benefit that comes from a stronger economy,” Morrison will tell Australian Business Economists in Sydney.
One has to really wonder if, had the levy already been imposed, would the taxpayer have enjoyed a conservative government dropping it? I wonder. Anyhow, the politics will now open up.
The other thing to consider is that a levy would have guaranteed the NDIS funding. Now it is year to year.
Had the levy come into being at 0.5% then every Australian earning over $21,655, would have felt the effect but this is improbable because the government looked unlikely to secure Senate support to legislate it.
“Labor moved in budget week last year to say it would only support an increase for workers in the top two tax brackets – people earning more than $87,000 – despite the fact that it levied a similar universal increase when in government.”
“The opposition is also proposing to keep a 2% deficit levy first imposed by the Coalition in the 2014 budget applying to earnings above $180,000, which the government has moved to scrap.”
I am now looking forward to Scott Morisson’s budget speech in which all this wizardry will then be revealed. If it is all as good as they are telling us then two things interest me. One is how did he do it and two, what’s in it for me?
My thought for the day:
People need to wake up to the fact that government affects every part of their life (other than what they do in bed) and should be more interested. But there is a political malaise that is deep-seated.
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