The Australian Budget

May 14th, 2014 at 3:00 pm by David Farrar

The Australian Budget yesterday was a great example of what happens when previous Governments don’t get spending under control and the deficit gets so large.

As we are about to hit surplus. has a $30 billion deficit.

Some of the Government Budget decisions include:

  • The government will axe 16,500 jobs over three years, by cutting 230 bureaucratic programs and 70 government agencies.
  • A temporary tax increase on those earning over $180,000
  • A cut in tertiary education subsidies by 20%
  • A lower repayment threshold and higher interest rate on student loans
  • Increase in pension age to 70
  • A part charge for seeing a GP

 

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28 Responses to “The Australian Budget”

  1. SPC (5,772 comments) says:

    So no mining tax then?

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  2. georgebolwing (978 comments) says:

    It is not clear that the budget will pass the Senate, especially after 1 July when the Senators from the last election take their seats.

    This leaves Abbott with a clear problem. If he seeks a double dissolution (a fresh election for both houses), he is unlikely to gain control of the senate and his House majority would also likely be reduced.

    The alternative is to try to do a deal with the batshit crazy minor parties, which might be even less popular.

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  3. JeffW (327 comments) says:

    The problem with western democracy as it is presently practiced is that it will be the fixing government (Liberals) which get blamed while the gross over-spending of its predecessor Labor will be forgiven or forgotten very quickly. How many NZers “hate” Roger Douglas for saving us from bankruptcy?

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  4. Redbaiter (9,560 comments) says:

    If NZ wasn’t paying interest on $60 billion debt what would the surplus be?

    Key needs to gather the guts to follow Abbot’s example.

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  5. Redbaiter (9,560 comments) says:

    “How many NZers “hate” Roger Douglas for saving us from bankruptcy?”

    Good example.

    Demonized by a viciously partisan media.

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  6. dime (10,100 comments) says:

    “How many NZers “hate” Roger Douglas for saving us from bankruptcy?”

    Yep, as i wrote on facebook:

    “Its like the mum blew all the family cash on crap and the kid blames the dad for no pocket money cause hes trying not to go bankrupt.”

    This budget is fucking great to watch. hopefully it sinks in a bit with idiot swing voters. This would have been us if Helen & co had won in 08

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  7. wikiriwhis business (4,116 comments) says:

    Hidden due to low comment rating. Click here to see.

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  8. Cunningham (846 comments) says:

    If kiwis need any warning about what will happen if the LabGreens get in they only need to look across at Aus. Economic treason is the only way to describe what has been done to Aus by the previous government.

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  9. dime (10,100 comments) says:

    This is awesome. Aussies going apeshit.

    Ya gotta feel for the families who have a parent earning 100k a year. they will lose almost 3 grand a year in welfare HAHAHA

    no wonder they are fucking broke

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  10. Manolo (14,044 comments) says:

    I wish Labour Lite had the balls to cut adrift a few quangos. If only.

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  11. thor42 (971 comments) says:

    Some good axing of the bureaucracy over there.

    Although they have a $30 billion deficit, that’s not all that massive given the size of the country ( 20+ million or so ).

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  12. thor42 (971 comments) says:

    The Aussie government should also kick out the 50,000+ invaders (boatpeople) that the Labor government let in.
    Those people will cost an absolute MINT over the next few decades in welfare and crime costs.

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  13. tvb (4,501 comments) says:

    This sort of horror budget one can expect after a profligate Labour Government has left office that is utterly incontinent with public money. The problem is Labour can always think of a good reason to spend money but they forget it has to fit into an overall budget and be financed.

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  14. RRM (10,009 comments) says:

    :eek: Any one of those cuts would be the right wing apocalypse here, a sure sign of a tory government that hates the poor and only cares about money.

    Well guess what kids? If you run out of money, you can’t take care of the poor.

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  15. Cunningham (846 comments) says:

    The thing that I find most amazing is over time people will forget what happened and vote them in again. The same will happen here even after the trainwreck that was the previous government (esp the last term).

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  16. mikemikemikemike (331 comments) says:

    Wasn’t it the Howard government that introduced Welfare for the middle classes…?

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  17. bondi (4 comments) says:

    Australian GDP is growing at about 2.8%. 30billion deficit is 1.7% of GDP. Therefore, under the settings prior to this budget, Australian national debt in proportion to GDP was still set to shrink (and yes, my calcs are back of an envelope). There is broad dissatisfaction with this budget over here.

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  18. wikiriwhis business (4,116 comments) says:

    Can you believe Nat supporters are defending Labour’s Roger Douglas on this thread.

    Cause Nat/Lab parties are a coalition

    Kiwibloggers just said it themselves on here

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  19. jcuk (713 comments) says:

    Yes Wiki it was one of the sensible things I read on KB tonight.

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  20. burt (8,312 comments) says:

    wikiriwhis business

    Oh for gods sake, the surprise here would be to see a Labour party supporter defending Roger Douglas. Is that last comment the best you can do to ? Have a cup of tea.

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  21. CharlieBrown (1,027 comments) says:

    Yip – the Australian Budget is an example of what we will go through due to 15 years of socialism.

    I only wish Key would take heed from Australia and fix the systemic issues labour started, but unfortunately Key is keen to just carry them on… gutless.

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  22. Johnboy (16,994 comments) says:

    Have the Aussies announced an amnesty for expatriate, ginga, commie cunts so we can flick that Norman bloke back to them with a clear conscience, knowing he will only get the minimal of the torture he really deserves? :)

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  23. Johnboy (16,994 comments) says:

    If he didn’t sound so much like a girl when he squawks I could almost suggest to the Aussies not to torture him so much when we send him back! :)

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  24. burt (8,312 comments) says:

    Australia, playing out 1984 in NZ for us to watch all over again. The folly of protected markets, unions writing employment legislation and spending more than they earn to stay popular and get elected. Suck it up Australia, the wise among you will thank Abbott for this one day, the militant unionists will campaign for the return of the good old days and that will be the same path of ruin for that got Australia to where they are now.

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  25. deadrightkev (511 comments) says:

    Sir Roger Douglas removed “privilege” from being the domain of the rich and allowed New Zealanders who wanted to succeed to compete and prosper in an open market.

    Sir Roger Douglas and Joe Hockey highlight how appallingly visionless and spineless National is as a political party.

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  26. PaulL (6,044 comments) says:

    I’m happy enough with the Australian budget – particularly compared to the alternative, but don’t believe the hype. They’re reducing the rate of increase in spending, nothing more. It’s not some sort of black budget. It’s about the same as what Key and English have done over time.

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  27. deadrightkev (511 comments) says:

    A systematic reduction in the rate of spending to a predetermined target percentage of GDP with a flat tax outcome is a sound economic strategy the average punter can understand. Another option is a tax free income threshold as I believe the Conservatives are proposing.

    All the current distortions and exemptions with WFF just add staff to the IRD we don’t need. It is also demotivating for those families that want to earn more and get ahead. Labour and National should be horse whipped for allowing this socialist scam to continue unaddressed.

    Tax cuts are something the left are opposed to vigorously because they are locked into tax and spend for control purposes.

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  28. Liberal Minded Kiwi (1,571 comments) says:

    It’s insanity that during Australians biggest ever boom period, the left managed to totally destroy the economy. It beggars belief. Just as when Helen and co left us with the ACC and Kiwirail black holes….

    We simply cannot afford to allow any Labour/Labor party near the purse strings again.

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