OK folks – a special open forum for discussing and debating the ALP’s budget. Since I haven’t the time to study the budget in depth and it’s not really appropriate for me to comment on the stuff I do know about (telco & broadband), I’ll kick things off with some casual observations and questions for the audience.
In no particular order.
Medicare Surcharge
What’s with increasing the income at which the Medicare Levy Surcharge kicks in, particularly increasing it by more for singles than couples? On the one hand – the levy was probably an artificial distortion anyway and every person that decides to not take up private health insurance will save the government $$$ since it won’t have to pay the 30% subsidy for these people . But this change potentially will see fewer young and healthy under 30’s joining private health insurance, which is likely to put upward pressure on premiums and in turn drive more people back into public health care. Was this a cost saving plan or a plan to undermine private health? (Disclosure – I have private health insurance and have shares in a health insurer)
First Home Saver Accounts
What the? I know this isn’t new and it’s been debated before in the blogosphere, but I still don’t see how giving potential buyers more money doesn’t wind up being a little bit self-defeating.
Fuelwatch
I hope to find time to write a specific post on this proposal. In short – I think it’s good politics, will be popular with many voters and will make petrol companies more money.
Babybonus
Yes – I accepted it when the government gave it to me, even though I (we) probably didn’t need it. But I’m not a fan using taxpayer funds to provide a cash gift to people when their baby is born. People who have chosen to live child-free must be going nuts at the increase of the baby bonus to $5k… it’s just another $5k of their taxes they won’t get back.
One laptop per child? (in years 9-12)
If only it were as cheap as the real OLPC. But the government is talking about ~$250m p.a. here. The likes of Dell, HP, Asus & Apple must be rubbing their hands with glee at this one.
Future Funds (Building Australia, Health & Hospital, Education Investment)
So the surplus has to go somewhere…somewhere that’s not inflationary and not in the hands of Jo Average who might just spend their money if you give it back to them. Can’t give it to rich people (despite their higher marginal propensity to save and invest any money they get back)… so why not squirrel the money away for a rainy day when the economy (or the government’s election prospects) are looking a little gloomy.
FBT on Laptops
Well there goes my favourite salary sacrifice item out the window.
