Bill’s Budget response

Bill Shorten delivered a stinging attack on the Abbott Government’s first budget last night.

Bill’s Budget response

An unusually feisty Bill Shorten delivered a stinging attack on the Abbott Government’s first budget last night.

His opening shot was the claim that millions of Australians would be ‘shocked and angry at the attack on their way of life’, before going on to accuse Tony Abbott of fostering a ‘colder, meaner, narrower’ culture in Australia.

He spoke of a loss of a sense of ‘fairness and community’ in a country where young people’s prospects ‘should not be determined by their parents’ wealth and postcode’. And warned older Australians, ‘If you rely on a pension, you will be punished’.

Moving to specifics, Mr. Shorten promised that his party would block key aspects of the budget, including:

  • Medical co-payment of $7
  • Changes to funding of higher education
  • Changes to Newstart
  • The proposed fuel tax and
  • Changes to pension age and indexation.

In total, this represents about half the $37 Billion proposed cuts in Budget 2014-2015, creating a significant threat to the ability of the Abbott government to carry out it’s economic vision. Already the Palmer United Party and the Greens have indicated that they, too, will oppose many of the above measures, so it seems unlikely this legislation will become law in the short term.

Watch Mr. Shorten in action here.

What do you think?
Was Mr. Shorten’s response a good one? Or was he merely negative? And should the Federal Opposition oppose such a large proportion of the budget measures?





    COMMENTS

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    Kopernicus
    16th May 2014
    10:45am
    Good to see Shorten finally to show a bit of animation, emotion, passion and conviction.
    Yes, I agreed with his view that the budget was a cruel display of Liberal ideology - ripping off most cash from those with the least and token amounts from the well off, leaving untouched huge tax concessions for the well off (eg capital gain, neg gearing, tax discounts for payments into super etc), flogging health and welfare and education.

    Yes, the deceit was boggling. Series of lies prior to the election, the pre budget confected economic 'crisis', and lies within the budget - like hardly any extra new money put into infrustructure, the passing of the buck onto the states to the tune of $80 bill etc.
    We have yet to find out the full extent and impact on the closure of many govt bodies and programmes.

    Finally, the witch hunt on publicly run institutions. Do we really want privatised education - just like Amerika? Is it worth flogging off Medibank when it's stuffing millions into treasury. Is the ABC going to be strangled by this rabid mob fueled bu dogma and hatred?

    16th May 2014
    10:53am
    We have the Labor party which stands for wicked things like same sex marriage and yet opposes welfare cuts. We have the Liberal party which opposes wicked things yet cuts welfare. The two parties need to morph together, then there will be no wicked things made legal and no cuts to welfare.
    MICK
    16th May 2014
    11:01am
    Whilst I do not agree with same sex marriage you need to remember that this comes from the Greens, not Labor.

    You need to stand back and be a bit pragmatic PIXAPD: put it up both parties by finding a GOOD Independent and voting him/her in. Lobby the local paper and discuss the benefits with your social group personally and via social media. Explain that a good Independent looks after his/her constituency whilst Labor and Liberal ignore what locals want and make decisions which the local member (if Labor and Liberal) normally has no say in.

    Get smart, not mad. Make a difference an send a message!
    particolor
    16th May 2014
    6:10pm
    Yes !! Get a hold of Your Independent Local member !! Shake Him if need be !! Tell Him about the wicked Same Sex Cuts and the Morphing of Wicked things and Welfare!!
    Ny19
    16th May 2014
    6:53pm
    The morphing of wicked things and welfare? Oh woe..... Is our PM going onto welfare?
    particolor
    16th May 2014
    7:01pm
    Don't be Silly now. I Don't think He even knows what that word means ??
    Ny19
    16th May 2014
    7:15pm
    Of course he does. He was once a monk(y)ish type person in a seminary or some such alternative universe type place. That's why he has such big ears.
    particolor
    16th May 2014
    7:20pm
    Noddy in TOYLAND had a friend like that ,and He was terribly rude to people if I recall Rightly ??
    Ny19
    16th May 2014
    7:37pm
    Well maybe there are worm holes connecting catholic seminaries, noddy land and prime Ministership?
    particolor
    16th May 2014
    7:57pm
    Ministership ?? Now there's a word I wont forget in a big hurry !!..Does it sail under a Greek Flag ??
    Ny19
    16th May 2014
    9:13pm
    Hmm maybe, because that sort of connects with "budget emergency". Yes, does sound Greekish.
    particolor
    16th May 2014
    9:24pm
    They are in all sorts of trouble over there !! Maybe be they didn't have a Stimulus Program like Rudd had ??
    MICK
    16th May 2014
    10:56am
    Tony Abbott and his bunch of twisted, malicious , lying misfits made their bed when they made uncategorical PROMISES during the election campaign. As soon as the campaign had ended these ALL went straight into the bin. So does Abbott and his misfits take the public to be complete fools? Obviously yes.

    Shorten has been a real wimp until now and I am pleased that he came out of his shell and told the government what most Australians think of the betrayal which has taken place. Trust is an important attribute and this government is to be less trusted than any government which has come before it. Also, we all need to head Abbott's words that he "is not finished yet" so there is worse to come.

    It was interesting watching the faces of the government front bench during the Shorten response. Julie Bishop (did anybody actually vote for this piece of work?) sat there laughing and smirking like a Cheshire cat for the whole speech as though she was watching an episode of Seinfeld rather than a response to what her leader had done. Clearly Bishop has no understanding of how most Australians have taken the wholesale and multi-pronged attack on their way of life. Christopher Pine (who is at home when he is launching malicious attacks on anybody who presents an argument different to the official line) did a fair bit of squirming as did Joe Hockey to a lesser extent. It was clear that the whole group like to dish it out and expect Australians to do as they are told (by them).

    I congratulate Shorten for his position. And I also say to Abbott's threat about a double dissolution "bring it on". This bunch are the agents of the rich and big business sent to plunder the population and they need to be sent on their way.

    I will be voting for an Independent at the next election rather than either toxic side of politics, but I will make sure that the candidate of my choice directs his/her preference to Labor. That way we break the your turn my turn stranglehold and get parliament to start working for the nation rather than politicians.
    PlanB
    16th May 2014
    11:19am
    Well said mick,

    Re Julie Bishop that nasty bit of work ! She was the defence for Hardie against the Asbestos, so that shows you where her morals lie.

    I almost always vote for an independent --but trouble is with preferential voting some times make it hard
    Ny19
    16th May 2014
    11:28am
    I enjoyed watching Julie Bishop and Christopher Pyne smirking so childishly. Hockey looked like he wanted to throw punches and Abbott appeared to be masking fury behind his strange smirky half smile. Their aberrant behaviour added silent movie impetus to Bill Shorten's great critical analysis of their budget. Fun to watch :)
    particolor
    16th May 2014
    7:10pm
    Yes ! It was like watching the Old Hag in The Tale of Two Cities, Knitting and Cackling while the Heads Rolled !!
    Luchar
    16th May 2014
    10:35pm
    So if I read this correctly, "Mick" actually "congratulates Shorten on his position" while "Robiconda" refers to Shorten's "great critical analysis of the budget".

    Did they watch the same speech I saw? What I saw was a man who simply tried to gain political mileage out of criticising verything Hockey had proposed, while having no answers himself to cleaning up the mess Abbott was elected to clean up. The Coalition was elected to stop the wasteful spending using money we do not have, yet Shorten plans to knock back many of the cuts proposed by Hockey. He will knock back the pitiful cent per litre fuel tax, and with it the plannedinfrastructure program and the jobs which will come with it. He told us of no planned cuts he would propose, meaning that any return to a Shorten government would meran a retyurn to an overstaffed public service, handouts to failing industries to save uneconomical jobs, a return to budget deficits, and thought bubbles producing promises of grandiose unfunded schemes which will never see the light of day. - in other words a return to the very policies of a government which has already spent six years proving itself to be disfunctional.

    And did any one of the Shorten cheer squad hear him say a sungle word about job creation or wil;l we simply return to the days of reducing unemployment by boosting the pub;lic service and propping up umeconomical industries?
    Dotty
    17th May 2014
    3:00pm
    Again well said Mick,
    I agree with everything you said and more ! And as for Julie Bishop ! well it goes without saying that she would be the nastiest piece of work ever in a Liberal Party,s side !
    Sitting as you said like a chesshire Cat that had just licked the cream!
    And she can afford to smirk as she is on a wonderful income !
    Not like us older Pensioners that as Bill Shorten said on a income just under $20.000 and nothing else like the Perks that comes from the said Taxpayers !
    Dotty
    Anonymous
    17th May 2014
    8:20pm
    Luchar - you need to remember that Abbott did the same throughout Labor's reign. He was Dr. No. The libs knocked back many of Labor's reforms. Now, you can say that they were not good reforms, BUT - hey presto - now Labor is now going to say that the Libs reforms are not good - and who is going to prove otherwise?

    It is called payback - don't get angry, get even is the slogan I believe.

    I actually find it extremely amusing because the Libs are now actually cleaning up half their own budget mess from Howard’s era. They ran up THE biggest PRIVATE debt bubble in history between the early 2000's and 2007. In the same period they used some tax money they got from people running up their private debt and paid down the government debt and roughly eliminated it.

    Households now have the biggest debt to GDP ratio in history - more than the Yanks had prior to 2007. This means their ability to consume lots of junk like when Howard was encouraging them to run up their debt is stymied - because of this high debt level. If people can't spend then the government does not get tax income, no tax income, no budget surplus. Tax receipts were already decreasing when Labor came into power in 2007.

    The libs under Howard gave tax decreases EVERY year - previously only once every three. They also provided THE BEST tax minimisation laws ever known to person kind if you paid attention to what was available. Was the best thing that ever happened for those who took every possible advantage and is a misnomer to think it was only the rich who benefited. And the best thing it was all legal.

    Costello recently said he wished he had put more money into the Future Fund he started, instead of giving it back as middle-class welfare and tax cuts. I note you made comment about the mining tax, but we have about $90b in the Future Fund and over $200b of unfunded liabilities in public servant and politicians pensions, so it does not even cover that.

    A country like Norway has about $900b in their Future Fund and that has been gained through taxes on their non-renewable oil reserves – they understand that the country needs to retain some of the wealth – as one day it will be gone. Australia has similar non-renewable resources and we squandered the opportunity to keep massive tax receipts that could have been had from the big miners. Naru had a massive phosphate supply and has now mined it all and blown away their heritage and wealth.

    Labor unfortunately removed nearly all of the really good tax minimisation rules brought in by Howard that the average person could use to gain wealth. They then proceed to spend the tax money this saved on social programs, as they usually do, and with tax receipts still decreasing due to people not having as much money to spend due to debt, they consequently caused more havoc to the budget.

    The Libs like to tell everyone they are good money managers. Actually they are not much better than Labor – but Labor is incapable of articulating why. Perception is reality, so the Libs get the kudos as such. Logic says it is because very few people are that interested in money and managing it themselves, so it is easy to lead them, because that is what they are used to have happen.

    Now I happen to fit a category that knows both sides of the fence – I know what happens at the top end of town and how the tax rules work and what happens at the bottom.

    The top end of town came out of this latest budget Teflon coated. No changes to Super, Trusts, negative gearing, 50% discounts on capital Gains, over 60’s Super not taxed, salary sacrificing cars is still allowed, etc makes for a non-event budget. Many will minimise tax and not pay the debt levy as the rules were not changed for the big end of town. This group will get more aggressive – because they can – and will increase their wealth accordingly because if they are not already they will be forced to get smarter using the tax minimisation benefits they have been left with.

    The bottom end’s spending gets affected by uni fees, and they/their own kids will pay more down the track for high education accordingly, higher petrol tax, lower unemployment benefits, new charges for doctor visits, extra cost for drugs, cancelled first home saver scheme, and their inability to efficiently minimise taxes (impossible as a pensioner), etc – means these people bear the brunt of the latest budget. I sure know which group I would rather be in to minimise the effect of the Libs latest ideas.

    Now, the Libs are not short of silly ideas themselves with paid parental leave - or taking away the carbon tax – BUT give people the tax benefits anyway (paid with money from heaven I assume).

    So to sum this up, the Libs are now a little bit worried about their own history catching up now they are back in power, just as much as what Labor has left them. BUT the Libs are smart and perception is reality and as most people don’t understand much about money – Labor should and will wear all the blame.

    The quality we have on either side of politics is VERY poor.
    Neptunia
    16th May 2014
    10:59am
    I think it is not so much with "broken promises"
    Liberal is trying to fix the debt created by the Labor Government who wastefully spent the funds left by the Howard Government and making it worse incurred enormous debt, which all of us have to pay. In fixing the debt problem, it is natural that there will be "tightening of the belt", which Liberal is planning to do. Unfortunately, when the belt is to be tightened a lot of areas will be adversely affected with reduced funding.
    I was hoping Shorten would present his side on how to fix the debt problem left as a legacy by his previous party instead of just attacking the budget. Shorten's plan of blocking the budget cuts to save billions of dollars implies that he does not intend to fix the problem but is just happy of leave the debt problem of the country as is or make it worse, which is detrimental to country and to every Australian.
    MICK
    16th May 2014
    11:10am
    You have clearly been out of the country for a year. Tony Abbott made balck and white promises before and during the election campaign. THIS IS WHAT HE WAS ELECTED ON. The man had the gall to use the word "mandate" frequently during the campaign. I say this to you Neptunia: Abbott had no mandate to reverse all of the groundwork set by the previous 2 governments and his stated intention to repeal everything the previous 2 governments did is an act of evil as he solemnly promised he would not. The thing is: it is not that he had to change his mind; it is that he never had any intention of keeping his word. The man is an unabated liar and needs to be sent on his way.

    I do agree with you that we have debt but there again Abbott and his spruikers have made it out to be an enormous problem. It is not. It never was. And you need to realise that this is how Abbott is orchestrating the transfer of wealth from the poor to the rich. It is a scam and not true. If you disbelieve me then have a look at the figures from his own budget as the country is not going to reduce debt at all and this will continue to grow. All Abbott is doing is an accounting fiddle and blame shift.

    It is sad that average Australians are so gullible and believe that greatest political liar this nation has ever seen.
    Kopernicus
    16th May 2014
    11:12am
    How do you account for the fact this mob have spent much more than Labor since elected? Yes, changes need to be made, but this is NOT a crisis. Abbot conveniently left out the revenue side, apart from petrol which is highly regressive and inflationary.
    Shorten is opposing about a third of the cuts - based on social equity ground and I agree even thou very little has affected me directly. The well off and the private sector have been smacked with a feather, the lower strata belted over the head - I can't believe the proposed dole changes (hello Amerika).

    Lets make changes to come into surplus gradually and with care for the most vulnerable in our society.
    PlanB
    16th May 2014
    11:26am
    Neptunia, Lab' also went through a very tough time with the GFC and got us out of deep Doo doo.
    Abbott lied and lied --after he criticised Gillard for lying --he lied and broke so many promises and had really made those that need help worry and suffer, he did this to get the TOP job for his ego and as he said he would do -- look it up for your self --he stated he would do "ANYTHING" to get the top job.
    particolor
    16th May 2014
    6:17pm
    Heard today down the Street from an Old Lady friend of Mine !!...
    Howard stole it !..Rudd gave it back and now Abbott wants it back again !!!
    Luchar
    16th May 2014
    11:28pm
    Can't believe some of the nonsense written on this site.

    Let's agree that Abbott lied about the "no new taxes". Fact of the matter was that he didn't need to make such promises in the first place since he was going to win the election anyway, so to make such promises was a mistake, and will continue to hurt him. But to tag Abbott as the "greatest political liar this nation has ever seen" , as "Mick" overlooks names like Julia Gillard and Craig Thompson for a start.

    However, "Mick" also claims Abbott had no mandate to reverse the groundwork of the previous government. Are you telling me, Mick, that he had no mandate to stop the boats, or to abolish the mining tax, or to abolish the carbon tax, or to take steps to reduce the $12 billion dollars per year interest we are paying on money borrowed by Labor. And you dare claim this is not a problem! Far from suggesting "Neptunia" has been out of the country, I might well suggest that you are living on another planet.

    "Kopernicus" would then have us believe that the "petrol tax is highly regressive and inflationary". Twelve months ago I was paying 122.9 cents per litre for my fuel. That same fuel tody is 143.9 cents per litre, and that is at the lower end of the price cycle and will likely be up to 20 cents dearer tomorrow. I mix with many pensioners in variious Veterans and Seniors organisations, and I do not know of a single person who has stopped driving during the past twelve months because of the increase in petrol prices. And now you want to claim all sorts of horrors relating to a one cent per litre rise. Since Shorten is going to oppose the rise, it does mean the end of the infrastructure programs which were to be paid for using the money from the fuel increase, and with it will go the increase in job opportunities which would accompany these programs. Great work, Bill!

    And of course we still have people like "PlanB" who still want to believe it was Labor which got us through the GFC, totally ignoring the strength of our banking regulations thanks to Hawke/Keating and Howard/Costello, ignoring the $20 billion we had in the bank at the beginning thanks to Howard/Costello while America and European countries were already in debt, and ignoring the fact that there was no crisis in China which continued to purchase our iron ore.

    It is also intersting to read "particolor's" comment about "Howard stole it." For years, this site has been filled with comments from those who actually blamed Howard for causing our debt crisis claiming the he gave away too much in handouts when he should have put more in kitty for the Rudd-Gillard-Rudd economic vandalism. However particolor's Old Lady down the Street was right about one thing - Rudd certaunly gave it back. Like his $900 "stimulus" handouts to 27,000 people living overseas and 21,000 dead people, like his handouts to uneconomic car manufacturers, like his handouts to unscrupulous pink batts installers, like his handouts to a green loan scheme which sent genuine businesses to the wall, like his handouts during the BER when it cost up to twice as much to build a school hall in a state public school as it cost to build the same school hall, built by private contractors, in the private school down the road - the list of Rudd "handing it back" is endless.

    Take a close look at Shorten's budget reply speech. Find one thing in his speech which suggests a Shorten government would be anything other than a return to the wasteful days of Rudd and Gillard.
    particolor
    17th May 2014
    3:23pm
    You were Robbed ??? I got $1,400 !!!
    Ny19
    16th May 2014
    11:00am
    Shorten performed like a true leader. I have newfound respect for him. Brilliant speech.
    particolor
    16th May 2014
    6:35pm
    Absolutely Brilliant Speech and is very deserving of going without that $6,500 Pay Rise !!
    Ny19
    16th May 2014
    7:06pm
    Deserving indeed. He is a hero, unlike Abbott who loves tax payers filling his piggy bank with money for doing charity things. Hail Shorten!
    particolor
    16th May 2014
    7:17pm
    Yes !! what Pain and Suffering some of them will have to Endure getting this Deficit fixed and Back to its Rightful Owners !!
    niemakawa
    16th May 2014
    8:22pm
    Maybe you were hallucinating at the time, or just plain ignorant of the facts.
    Kopernicus
    16th May 2014
    11:02am
    To add a little more.... Shorten did refer, albeit briefly, to the need for structural change. He stated the obvious, the need for social equity when making cuts (ie not like in this budget) AND the need to review and expand sources of revenue, so much diminished thanks to Howard (and channeled into the pockets of the well off).
    It was not his role to give more detail at this point.
    You may all recall the tactics of Abbott in opposition - policy being totally absent, but for 3 word slogans for 3 years, not that I would see Labor repeat this pathetic strategy. I would like to see them articulate their vision more in the future.
    MICK
    16th May 2014
    1:44pm
    Correct. Voters were sucked in by 3 word slogans and by the media which ran an outright one sided propaganda campaign. What is truly sad is that average Australians did not see what the real game was. It must be clear now that this is all about inventing a national emergency so that the wealth transfer to the rich can start. It has........with more to come according to Tony Abbott. Welcome to "class warfare", created by One T. Abbott.
    PlanB
    16th May 2014
    11:11am
    I was impressed with Shorten's rant and he said almost all I feel !
    Ming
    16th May 2014
    11:37am
    Doesn't take a lot to impress some!
    Nightshade
    16th May 2014
    12:51pm
    What Our Wee Billy Shorten needed to do was to cost a few of the "cost savings schemes"
    like work for the dole
    &
    the cost of job search & employment services employment agencies

    HOW MUCH WILL IT COST TO RUN THESE ORGANIZATIONS /SCHEMES
    AS OPPOSED TO THE CALCULATED SAVINGS
    JUST HOW MANY WORK FOR THE DOLE POSITIONS WILL BE CREATED
    THERE ARE CERTAINLY MORE THAT ONE HUNDRED THOUSAND - 100.000 - YOUNG PERSONS WITH NO JOB - BUT IN REALITY MUCH - MUCH MORE.
    Billy Boy get a bean counter to add it up for us.
    MICK
    16th May 2014
    1:50pm
    Come on guys. Fair go!!

    Look at the form. When did Abbott ever cost any of his programs, apart from a nebulous figure for his ridiculous parental leave scheme? And the country can afford this????

    The real issue is that Abbott invented a financial crisis which does not exist and then began redistributing the national wealth to the rich. Seriously, who can justify taking money from pensioners so that working mums can stay at home? Surely it is enough that the state is expected to throw in billions of dollars for child care when this is not the responsibility of the state.
    Aloysius
    16th May 2014
    11:49am
    Just for a little balance here, Brian Loughnane (LNP) commented:
    Tonight’s address-in-reply to the Budget by Bill Shorten was his opportunity to finally explain to the Australian people his plan to start paying down Labor’s record debt. It was also his opportunity to show that Labor had changed since the Rudd/Gillard years.

    Instead, Mr Shorten completely failed this test.

    He offered no solutions – and accepted no responsibility to help fix the mess left by Labor.

    His speech was all politics, and no economics.

    Bill Shorten and Chris Bowen left Australia with a projected record $667 billion debt, but aren’t prepared to work with the Australian Government to begin fixing Labor's mess.

    Nine months after being rejected by the Australian people, Labor has not changed and Mr Shorten is showing no leadership.
    Tom Tank
    16th May 2014
    12:08pm
    That projected debt was Joe Hockey's figures. You obviously have a bias in one particular political direction.
    Tony Abbot never ever made a statement has to what he was going to do once he won government. H e did make strong statements about what they wouldn't do, eg health , education, pensions etc then proceeded to break those promises.
    Oppositions role is to really act as Devil's Advocates and explore the weak points of government policy not to create policy.
    MICK
    16th May 2014
    1:53pm
    "labour's record debt". Please look at the figures and also how Australia compares with the rest of the world. You are quoting your Furhrer Tony.

    Shorten's speech was about the unfairness of the budget which hit low and middle income earners whilst the rich got a 1.5% tax cut. Nobody expected a costing at this stage as the speech was a response to the government's attack on the most vulnerable, nothing more.
    Kopernicus
    16th May 2014
    5:21pm
    Is it accidental that your avatar is Aloysius - same as the school both Abbott and Joe attended.

    Bills job was to critique the budget - he does not govern. His, and the verdict of a seeming majority, is that Abbott CHOSE to raise money mainly from the pockets of those who can least afford it ie sparing the Big End of Town. Does that make it right, after all there are alternatives
    Twould be a cakewalk to dump super concessions, increase capital gain tax, lift top marginal rates, cease making family trusts a tax dodge, dump negative gearing ........ and bingo! - a surplus next time round.
    Luchar
    16th May 2014
    11:42pm
    Mick,

    Why do you think the answer is to compare us with the rest of the world? If I am a pensioner with a $10,000 debt hanging over my head, and my neighbour, also a pensioner, is in debt to the tune of $20,000, it does not mean that I am doing well.
    grand
    16th May 2014
    12:01pm
    Julie Bishop was playing with her phone during the speech, I do hope the people who voted for her in WA saw that disgraceful display. If Tony Abbott and his mob think that if an early election was called that they would be re elected, then he must be dreaming.Why would any sane person vote for THAT budget,especially if you are a pensioner, or on a low income, they want us all to roll over and die, will this black duck isn't.
    grand
    16th May 2014
    12:07pm
    Bill Shorten was doing a Tony Abbott pre election by not revealing HOW they will pay for there policies if my memory serves me correctly both Abbott and Hockey said that there costs will be revealed Just before the election
    MICK
    16th May 2014
    1:55pm
    Worse than that Bishop was smirking right through the speech. So what was so funny? Was it that Shorten objected to what was being done to average Australians? You are right grand and I suggest that this despicable Howard left over needs to be sent packing at the next election.
    niemakawa
    16th May 2014
    7:26pm
    Being a Liberal supporter I hope an election is on the cards. Once again the Liberals would win and more convincingly with a clear majority in the senate and then they can get on with the job of securing a future for us all. Labor will only entrench everyone into poverty where there would be no option to advance your own wishes.
    Nightshade
    16th May 2014
    12:17pm
    1 :- JOB SEARCH & EMPLOYMENT SERVICES ACTIVITIES
    2 :- 25 HOURS A WEEK WORK FOR THE DOLE -is the federal government going to set a up structured work for the dole system & if so - HOW MUCH WILL IT COST THE TAX PAYER ?
    CONSIDER THAT LIABILITY INSURANCE ALONE - TO INSURE THE WORKERS WILL COST A FORTUNE.
    caution :- If you or your loved ones must participate in a work for the dole scheme make sure they have total & correct OCCUPATIONAL HEALTH & SAFETY UP & RUNNING & make sure that they CURRENT & COMPREHENSIVE HAVE LIABILITY INSURANCE.

    If you hurt yourself & sustain injury that may incapacitate you for a time or even a life time make sure you will be looked after.

    THE INSURANCE ALONE WILL COST THEM MORE THAN THE DOLE PAYMENT.
    Nightshade
    16th May 2014
    12:18pm
    Abbott looks what he is
    Nightshade
    16th May 2014
    12:20pm
    Ring a health & safety inspector to come around & make sure that the place is okay - do not take any ones word for it - it is your life - they don't give a shit.
    Nightshade
    16th May 2014
    12:22pm
    ALL OF THIS
    COSTING THE TAX PAYER A SMALL FORTUNE
    INSTEAD OF HELPING BUSINESS TO FLOURISH IN AUSTRALIA
    MICK
    16th May 2014
    1:58pm
    So are you advocating that the current rorts whereby some young people make the dole a lifestyle choice be permitted to continue. I fully support that anybody being given a handout do something other than head off surfing or sit around drinking all day. Most people would agree with that observation.
    particolor
    16th May 2014
    6:30pm
    I wont let any of those Unskilled Under Insured, low Paid Workers put Bats in My Roof !!
    MICK
    16th May 2014
    8:13pm
    The current beat up and witch hunt regarding the pink batt deaths ignores the reality that IT IS THE RESPONSIBILITY OF THE CONTRACTOR TO ENSURE SAFETY OF WORKERS and if they were not skilled then they should not have undertaken the work. I would have thought that existing installers only should have been allowed to do this work and that the state government would have been the responsible entity. As I said this looks very muck like another witch hunt.
    particolor
    16th May 2014
    8:25pm
    Mick... You are RIGHT.. It is the Responsibility of the Contractors to Ensure the Workers are Fully Protected and trained or Qualified and covered by Insurance before undergoing any Work !!.. Witch Hunt !!..Its like trying to Sue Hitler for the Second World War ??
    GregB
    16th May 2014
    12:30pm
    What a dreary effort. Just as well the Collingwood-Adelaide match was on to save us all from mundane monologue.
    particolor
    17th May 2014
    7:34pm
    A toss up between the Colosseum and the Ariel Ping Pong ay Greg ??
    Colours
    16th May 2014
    12:31pm
    Very impressive speech. Did Sam Seaborn write it?
    particolor
    16th May 2014
    6:47pm
    No ! Seinfeld did....
    niemakawa
    16th May 2014
    7:33pm
    Well it is quite obvious that Mr Shorten did not write it, he just said the words, without any conviction I would add.
    particolor
    16th May 2014
    7:45pm
    Yes !! He doesn't Posses a smug Grin like the others does He ??..
    Mar
    16th May 2014
    12:45pm
    Excellent reply by Bill Shorten, well delivered. Now it's about time as concerned Australians we stand up for what made us a great country and look after our young,elderly,disabled. Not take them down. We all (including pensioners) need to make our voices heard. Forget "she'll be right", because this time it's NOT right.
    Ny19
    16th May 2014
    6:17pm
    Spot on! Time to stand up and be counted. Start emailing or writing your complaints to MPs folks. We need to bombard them. Won't get anywhere by putting up and shutting up.
    Mar
    16th May 2014
    1:18pm
    Come on all you pensioners. Stand up for your rights!!!!!! This budget is not fair.
    MICK
    16th May 2014
    2:01pm
    The way to fix this: ALL PENSIONERS VOTE IN ONE BLOCK. This would make a point and end the begging game pensioners regularly go through. So put your personal political party away and do what is good for the cohort. Locally, meet, pick out the best Independent available and go talk to him/her and discuss your proposal and what the candidate will do for the group. if you like what he has to say vote for him/her. Message sent and problem solved.
    particolor
    16th May 2014
    7:53pm
    "Stand and Deliver !!" said Kelly..So they stood and emptied their Davey Crockets...
    Nightshade
    16th May 2014
    1:27pm
    ON
    C 31 Australian Free to Air Television.
    There is a MUST SEE program
    The PI Show
    The Personal Injury Law Show
    I have watched this show many times - these people are true professionals & they know what they are talking about.
    Oldie84
    16th May 2014
    1:30pm
    I've watched many budgets in my advanced years and one thing is for certain: there is never any praise, only complaining and whining in the aftermath. It gets really tedious. Us Oldies should be used to it by now.
    PlanB
    16th May 2014
    1:53pm
    I have watched many too but this one was a doosey as far as out right lying goes
    Waytoopoortobeme
    16th May 2014
    2:32pm
    As a democracy every1 is entitled their opinion. But there is Nothing to praise the Liberals for. Too many of the haves simply have no empathy nor compassion for the have nots. Circumstance beyond our control in this day & age would see any of us at any time perhaps needing assistance from the Government. But it appears that will no longer be the case for many. Beg Borrow & steal will be their only option. Abbott & Hockey both out of touch with reality. They want to push the poor into the water with a sink or swim approach. Bill Shorten's response showed me that he will get my Vote next time!
    MICK
    16th May 2014
    2:38pm
    Been to America lately? I go every year and the poverty and the abuse and low pay for workers make me wonder if I am in the most industrious and rich country in the world.

    Make no mistake that the Abbott government is, just like the Howard government, after workers. The "more to come"after the budget from Abbott will be Work Choices dressed up differently. Big business laments day in and day out for its American style labor policies. If Australians think that this budget is tough then wait for the next one. Then and only then perhaps the folk who were conned into voting for this crew might see that they have been done over.
    billber
    16th May 2014
    4:20pm
    I bet we see the Abbott Gov let the YANK Murdoch take over from the ABC in Asia.
    MICK
    16th May 2014
    4:34pm
    Given that Murdoch ran ongoing attacks against Labor in the run up to the last election whilst ignoring the rorts which several liberal candidates (including Abbott) had been involved in and that the other big media players joined ranks in this propaganda campaign who do you think is running the country? Unsure? Ok, who provided funding for the Abbott election campaign? There is an old saying about 'follow the money trail' and given what has been coming out at the ICAC regarding state Liberal I am sure that it is not rocket science to work this out.
    particolor
    16th May 2014
    5:51pm
    ..I'm late for Friday Fun Night !!..
    We have started a Polly's Pay Rise Fund here where I live,in Sympathy of them foregoing a Pay Rise from the Public Purse!!..
    I have kicked it off with a $7 Donation, instead of going to the Doctor with My Chronic Illness..Memory Loss ??.. I forget where I put My Wine ???..
    I also found a Musty Stale Old Cigar in My Grandfathers Shed, which I sent to Joe as He wont be able to afford another for a Whole Year !!!..
    Please Give Generously...Box 666 Bullamakankarulla NSW...
    Ny19
    16th May 2014
    6:46pm
    I don't have $7 to spare but I would like to donate a cigar for Joe which I made with my own gnarled old lady hands. It contains arsenic laced cow dung but we won't tell him that will we. Hopefully he'll share it with Mathias. Would like to give Abbott something too but it's so hard to think of presents for rich people. I do have some spare cow dung so maybe he'd like a sculpted cross to kiss when he prays that people won't forsake him?
    particolor
    16th May 2014
    6:58pm
    OOW !!! No Sweeny Todd's here thanks !! We want to Frighten them not send them to the Doctor as they wont Have the 7 Bucks now with their Pay Loss in the coming future !!..But a NEW PAIR of RED Speedo's would be a nice Jesture for Him !!!
    niemakawa
    16th May 2014
    7:42pm
    Robiconda what is wrong with being rich. Maybe you did not try or work hard enough to have a comfortable life. Obviously you have issues, and maybe you should seek help.
    Ny19
    16th May 2014
    8:10pm
    You've got it all wrong. We have to do everything we can to send them to the doctor while their pay rises are frozen. The more pain they can experience over the next year the better. They haven't earned so they need to learn. It's our only chance to get empathic reasoning instilled into them. Call it work experience.
    particolor
    16th May 2014
    8:18pm
    Do You really think Forfeiting 6 and a Half Big Ones would worry them 1 Iota ??.. Some of them spend more than that on Cigars !!
    Ny19
    16th May 2014
    8:25pm
    You appear to be on the wrong channel niemakawa. I have nothing against rich people but everything against rich people telling poorer people that they have to sacrifice for the sake of rich people.
    Ny19
    16th May 2014
    8:32pm
    No particolor it won't worry them one iota. I was just taking the mickey.
    particolor
    16th May 2014
    8:48pm
    And here I was thinking that was My job ?? .. Putting Mickeys back is a daunting job and requires Delicate Surgery !!
    particolor
    16th May 2014
    8:50pm
    PS....Plus 7 Bucks !!..
    niemakawa
    16th May 2014
    7:20pm
    When will he admit to the Australian people that the problem is a legacy of the Labor Governments ineptitude 2007-2103. Until he comes clean I wouldn't place any importance on his rebuttal of the budget measures. Best he be compliant and assist with the passage of the budget through the senate.
    particolor
    16th May 2014
    7:41pm
    Someone who can look into the future and Predict Doom and Gloom is certainly one to be admired !!.. The World Bank could use Joe as a Profit of Doom !! .. And take appropriate action a forehand !! like Rob Poor People !!!!
    niemakawa
    16th May 2014
    7:48pm
    Particolor who is Rob Poor People?
    particolor
    16th May 2014
    8:04pm
    Rob Roys father I think ??
    niemakawa
    16th May 2014
    8:06pm
    A Scot, now I understand.
    MICK
    16th May 2014
    8:22pm
    Labour was certainly "inept" but it also did things which did something for the nation. The only thing liberal governments do is to move wealth to their supporters. You'll never see the liberals provide a universal health care (same in the US at the moment). You'll never see a liberal government see into the future regarding communications (I could write a book on this one) and you'll never see a liberal government seek to better the lot of ordinary Australians. This makes me sad as well as mad because I expect any government in our nation to work for the whole nation, not just one select group who believe that the wealth of the nation is all theirs.
    niemakawa
    16th May 2014
    8:27pm
    Mick the wealth of the Nation is open to all. Unfortunately there are too many people in this Country of all ages that do not want to make an effort. It is people in this group that favour Labor to ensure that they never have to. Yet they do most of the complaining about their "suffering".
    particolor
    16th May 2014
    8:40pm
    Mick.. That reminded Me of My old Friend Malcolm Frazer.. Got Whitlam Sacked Grabbed the Reigns with Lies a Flowing, and was in ten Minutes and put the Income tax on wages Up to 33% ..Which set Me back a Fortune at the time I!!! .. I nearly Crashed The Train with Shock !!!
    MICK
    16th May 2014
    9:38pm
    I agree that folk who want to make social security a lifestyle need to eased into the real world but not providing any form of social security may turn these people to crime. I wonder how we all will feel when our house is burgled or we are bailed up in the street by desperadoes.

    Whilst there are always 2 sides to any discussion it never ceases to surprise me that the liberal side of politics is ALWAYS about transferring money to the rich and buying votes when they think they are going to get the boot.

    Whilst I think that this country needs a bit of tough love so that those of us who are preying on the system begin to understand that somebody is paying their way I do not advocate wholesale plundering as the harmony we all live in will be broken once class warfare becomes nasty. Force people into starvation and it will.
    Kopernicus
    16th May 2014
    7:58pm
    I was just reminded of an omission in my formula to fix the deficit. Tonight's news mentioned the potential use of fringe benefit rules for those earning >$180K to evade the 2% "levy". How easy is that?
    How does an unemployed person evade getting a rock bottom meager benefit for only 50% of the time? Get a job? But there is 6% unemployment and much higher in the younger cohort. Someone will fall into this category, it's a Russian roulette - no fringe benefit rescue here.
    particolor
    16th May 2014
    8:12pm
    Tell the Boss He is Overpaying You by a Thousand Bucks !! Too easy..But no doubt they are working on Better Formulas now !!..
    niemakawa
    16th May 2014
    8:18pm
    Personally I think everyone should pay the levy, including pensioners. That will be an incentive to never allow Labor the chance of regaining office. When are people going to realise that each of us has the responsibility to learn and be educated. I applaud the Hockey budget for its vision on alerting this point.
    particolor
    16th May 2014
    9:08pm
    Niemakawa..Why do I keep Smelling Cigar Smoke ??
    niemakawa
    16th May 2014
    9:11pm
    Paticolor, maybe because you are smoking a cigar!
    particolor
    16th May 2014
    9:20pm
    No !! It seems to be whenever You enter the room ??
    niemakawa
    16th May 2014
    9:27pm
    Particolor I would never want to be in the same room as a loser like you. Do something positive for once in your life and see sense by voting Liberal. Then you will have redeemed yourself. Then perhaps we can be in the same room, smoking cigars.!
    MICK
    16th May 2014
    9:41pm
    Thanks Kopernicus. I saw that tonight. So the 2 years Deficit reduction Levy on the rich is now effectively gone as they can use fringe benefits to fiddle their income below $180 000 pa. But they get to keep the 1.5% reduction in the company tax rate. Well done Tony. It worked....and of course the states will now have to levy a GST to make up for the money you have stripped away from them. You are an evil man.
    Mar
    16th May 2014
    8:00pm
    That Labour created the "legacy of debt" is a Liberal furphy and always used as an excuse to defend their actions. It's about time we stopped accepting this excuse.
    niemakawa
    16th May 2014
    8:05pm
    Well maybe we can stop accepting the excuse that seniors cannot manage their budget. I am a senior and do so adequately.
    Ny19
    16th May 2014
    8:52pm
    Unfortunately Mar that furphy dug deep into the nation's psyche with big help from Murdoch. Getting people to understand the truth on this fact is a huge hurdle.
    niemakawa
    16th May 2014
    9:15pm
    Robiconda, you seem to understand the truth of this fact so enlighten us. If you had a bank account with a debit balance, would that not alert you that you have overspent? Maybe you would ignore it and expect someone else to make a donation to replenish the funds. Get a grip please.
    particolor
    16th May 2014
    9:35pm
    Nienakawa..I manage adequately too as you put it !! I have a Budget too!! And at every Federal Budget I cross a Luxury Item off it !! Like Dunny Rolls and Candles Etc !!
    niemakawa
    16th May 2014
    9:37pm
    particlolr, keep the candles they have multi uses!
    MICK
    16th May 2014
    9:44pm
    It is rather amazing how people repeat this a 'fact' when it is essentially untrue. Talk about a snow job. I'm sure some of the Howard left over front bench would get a job with Goebbels as propaganda ministers. they are good.
    niemakawa
    16th May 2014
    9:48pm
    Mick, you have contradicted yourself. See your earlier reply to the post by Kopernicus.
    bookwyrm
    17th May 2014
    2:32am
    Double Dissolution now! Get rid of Liar Liar Pants On Fire before we become a state of the United States of America. Didn‘t think Bill could do it but he did - absolutely brilliant. Hahaha, worth it just to see the expressions on Hockey and Abbott‘s faces. I‘ll vote for anybody who gets rid of this sociopathic government. Palmer and Milne were brilliant too. Bring it on! Let‘s give the bully boys a taste of their own medicine! Australians are not stupid and still believe in a fair go for all!
    Ny19
    17th May 2014
    3:10pm
    "sociopathic government" - yep, that fits.

    17th May 2014
    8:11am
    What is wrong with the Australian mentality that it could be sucked in by that idiot Shorten. How he became leader shows what a dim witted lot we have become. Are we all a bunch of morans. Start using your brains and realize a country with only 23 million people cannot afford the dupication of state governments. Get rid of all this dead wood which is sucking us dry. A tiny population only needs one federal government with many less unproductive leeches dragging from the public purse.
    PlanB
    17th May 2014
    8:21am
    And may I ask Dogsbody ? Who are you calling leeches ? I also don't like Shorten BUT Abbott is a real mongrel, liar and hypocrite, he and his mob do not give a stuff about any one but the BIG end of town, so we have to have something in the middle
    particolor
    17th May 2014
    10:55am
    Ignore them PlanB !! They are Badly infected with BigEaritis and there is no Cure !! Niem has it too but worse !!.. Telling Me to vote Liberal !...I would rather eat Fukishima Dirt !!..
    Even though I wasted My vote I thought My Sketch of Goofy looked fitting !!
    Toss the lot of them hopeless Farts out and get some people that know what they are doing !!..Thank You I wont be back...
    MICK
    17th May 2014
    2:34pm
    Dogs Body: "Sucked in"?

    Surely you mean what was done to the Australian public for over a year before the election. That's sucked in. Well really its called a propaganda campaign.

    By way of example consider what happened to Peter Slipper for almost a month. Labor was grilled almost every night about his cab cab charge rort. When Tony Abbott was caught doing the same thing the same ABC reporter asked Abbott about his rorting and Abbott replied "oh come on Lee" and that was the end of it: no follow up questions; no grilling for a month; finished! So you talk about sucked in do you Dogs Body. The truth is that Shorten was telling it like it is and Abbott and his bunch of cut-throats are disreputable liars deceiving the feeble minded. Whilst I never vote for either side of politics see the last 2 years for what they are: THE BIG END OF TOWN GETTING RID OF A GOVERNMENT WHICH WAS NOT ABLE TO BE CONTROLLED BY THE RICH AND BIG BUSINESS. Your clues, if you wish to check them, lie in both the current budget, Hockey's statement that they "are not finished yet" and the policies which this government seek to repeal (first). All benefit the big business and the rich whilst society and the well being of the nation can go whistle. The sad thing is that people like yourself cannot see that you are like the lobster in the pot: being cooked slowly whilst unaware of what is happening. Just like the lobster you will wake up when it is too late and when you have been done over.
    Anonymous
    17th May 2014
    2:41pm
    Phew, that stirred the pot. Good budget to fix the damage caused by the useless labor party. Wake up Australia. Or go down the gurgler. Leeches are the excess baggage running around the halls of state and federal government pretending to be doing something. Plan B there are lots of them on both sides.
    particolor
    18th May 2014
    9:53am
    Ole Stoggies I have found!.
    Short ! But not too Big around !!.
    Roger Miller.....
    Lacemaker
    17th May 2014
    9:11am
    What we need are more politicians like Ted Mack.
    PlanB
    17th May 2014
    9:20am
    Lacemaker --((hugs to you) you are dead right he was an honest Polly
    MICK
    17th May 2014
    2:36pm
    I had a soft spot for Mack. He was an honest politician and told it like it is. That is why he was reviled in the parliament. You don't get too many honest pollies and even less who want to see accountability in the parliament.
    Aviatorman
    17th May 2014
    3:43pm
    Did Labour really leave things in a "mess".?? .... What.. was there paper strewn all over the floor or what.? Funny thing, immediately after the election many ministers were running around using the "mess" or "disaster". Dear Joe was getting around with mouth dropping- head shaking- antics. Now the debt has doubled, but the question is...is a real problem or not. Oh, and what a shame the NBN's been interfered with. Anyway, great speech with lots of applause from the gallery. Bill doesn't have to find solutions NOW.. that'll come later. As for Julia and her reversal (sorry-lie) can't wait for her book in August. Bet Bobby brown had something to do with the reversal on Carbon tax.
    particolor
    17th May 2014
    3:52pm
    Joe is felling Much better now !! He took a Bex Powder and had a Good laydown !!
    MICK
    17th May 2014
    7:20pm
    Good that somebody saw the campaign for what it was: one based on lies run by a media one sided propaganda campaign.
    If anybody heard Christopher Pine's comments tonight about poor Jule Bishop being jostled at Sydney uni then you'd have to shake your head because Bishop smirked and laughed through the entire Shorten response. Was it really so funny that poor and average Australians were singled out so severely by the rich man's party? From my perspective Bishop received exactly what she deserved. Lucky for her that she lives in a peaceful nation as in third world nations she would have been attacked, not jostled.
    particolor
    17th May 2014
    7:31pm
    Yes Mick and I'm glad She wasn't visiting Shark World at the time !!
    MICK
    17th May 2014
    8:12pm
    Feel sorry for the shark who would have come off second best.
    particolor
    17th May 2014
    8:35pm
    OOW !! Never though of that !!
    PlanB
    18th May 2014
    6:00am
    I don't think Julie Bishop would be too worried about a bit of a jostle she is tough as nails and her face is starting to really show it too--she is a hard bitch and one that defends the like of Hardies , over the Asbestos suffers, same as the lack of feeling Abbott had for Bernie Banton.

    This Government are led by the like of Gina Rinhart and even use her sayings
    ie --'the age of entitlement" ---BIG business are the ones that dictate to this Government
    particolor
    18th May 2014
    8:23am
    Seek Hail !!!!
    Paddington
    18th May 2014
    8:05am
    Why were people sucked in by people like Tony Abbott and Joe Hockey, when they are both such smug, self satisfied, individuals, being paid far too much for a job they struggle to do.
    They have added to the deficit since they have been in charge of this country's finances and now they are going to take money of the sick and aged. I am so glad I am not responsible for them running this lovely country.
    particolor
    18th May 2014
    8:07am
    Let them eat Steak !!
    PlanB
    18th May 2014
    8:11am
    I think most unthinking people voted for what they thought was
    "the best of a bad bunch" at the time--instead of voting for the minor parties and sending a LOUD and clear message, that neither were much chop. Now we are stuck with this mob that brown nose the big end of town
    MICK
    18th May 2014
    9:51am
    You understand both the problem and the solution PlanB. Sadly most Australians are both apathetic as well as easily swayed by lies and distortions. The one sided propaganda campaign run by the business owned media was too much for them to make a proper decision and the voting public proved again that it is little more than cattle to be manipulated as required. And you are dead right that the better of 2 evils was the decision made by voters when the lies were put before them.

    If all Australians gave a damn and spent a bit of time on blogs like this then maybe they would do what is required: vote in a good Independent. Both parties are terrified of this and campaigned against this at the last election but I am not holding my breath on that one.
    Aviatorman
    18th May 2014
    11:33am
    Geeze, See todays Sun-Herald (NSW version page 43)... More sting in the Budget hidden in fine print, not mentioned in the speech. Affects Seniors and Pensioners... check it out NOW.
    PlanB
    18th May 2014
    11:42am
    Can you give us a site please Aviatorman, as I have looked an can't find --or do you have to be a paying member ?
    Aviatorman
    18th May 2014
    12:39pm
    Yes, go to www.smh.com.au Todays sun-herald comes up... then in search box, top R/H corner, type in David Potts, after selecting this go to "Budgets secret sting for pensioners and mature-age workers" Hey presto and there it is.!!
    particolor
    18th May 2014
    12:51pm
    Yes We are all Magicians and Computer Hackers ?? Why hide it in the First Place ??..
    Print it up here so We can all read it !!! ..
    Your Humble Servants .....
    MICK
    18th May 2014
    2:50pm
    Good one Aviatorman. This simply confirms what I predicted before the election. I hope that retirees can get smart and not vote this government in again but I'll believe it when I see it.
    PlanB
    18th May 2014
    3:13pm
    Feel the sting: budget 2014

    New rules discourage anyone over 65 from remaining in the workforce. Photo: Wolter Peeters

    Pensioners, mature-age workers and self-funded retirees will be stung sooner than expected by the budget.

    Those eligible for the part pension from next January will be hit by an effective 50 per cent tax as super payments are included in both means tests, financial advisers warn.

    Worse, after July 1 this year those on concession cards which are available to pensioners could lose as much as $2000 a year, says Louise Biti, head of technical services at Strategy Steps, which advises financial planners.

    The pension concession and Commonwealth Seniors Health cards offer travel, electricity, phone and council rate discounts in an agreement with the states.
    Advertisement

    But buried in the budget documents the government reveals it will be "terminating" this agreement after July 1, saving $1.3 billion over four years.

    "It will hurt pensioners the most. This will cost $1000 to $2000 a year. No one was expecting that. Since it's not a direct payment to pensioners the government didn't want to highlight this," Biti says.

    The separate abolition on September 20 of the "seniors supplement" attached to the Seniors Health card for self-funded retirees will cost couples $1320 a year.

    But the biggest sting is the government's decision to count super drawdowns as part of the assets test from next January.

    This will bring super into the deeming net where it is assumed to earn a certain return, as is the case for term deposits and other financial investments.

    Currently super pension income is adjusted by dividing the balance by the pensioner’s life expectancy.

    Under deeming, super will be simultaneously caught by both the assets and income tests.

    For example, a 65-year-old with $250,000 in super on the full pension would, after January 1, be assessed as earning $8284, which is above the $7176 income threshold. Every dollar earned above $7176 would lose 50 cents of pension.

    In a double whammy, you lose some of the pension to begin with, then another 50 cents in every dollar you earn if you keep a part-time job, financial planner Paul Moran, principal of Moran Howlett Financial Planning, says.

    “Under the assets test you could work part-time to use up the income test threshold but now if you have a super pension you’ll lose half. The change amounts to a new tax of 50 per cent for many existing and soon-to-be pensioners and veterans. It’s a huge hit,” Moran says.

    It will hit even harder in 2017 when deeming starts with balances of $30,000 (or $50,000 for couples) instead of the current $46,600/$77,400.

    Those getting the age pension before December 31 will be exempted from the new super deeming rule. But this will also discourage anybody over 65 from remaining in the workforce, at the risk of being caught in the new rules from next year.

    “There’s an incentive to retire if you reach 65 this year. Or you could resign, go on the pension and then go back to work part-time and start a super payment so long as you do it before December 31,” Moran says.

    “These are not wealthy people. So getting $100 less a fortnight is very material to them,” he adds.

    In another budget hit, the mature age worker’s tax offset for those in the workforce aged over 55 and earning less than $63,000 a year will be scrapped on July 1.

    Although this will pay for the new $10,000 subsidy to employers for hiring older workers who had been on the dole for six months, Biti warns this could backfire.

    “A boss might sack you and hire somebody else and get the $10,000,” she says.

    Other budget booby traps include:

    The fringe benefits tax rising to 49 per cent for those earning over $180,000 paying the deficit levy.
    The franking credit from dividends drops from 30 to 28.5 per cent after July 1, 2015.
    A freeze on the thresholds for the private health insurance rebate and Medicare levy surcharge from July 1, 2015. This will reduce the value of the rebate for some and push others into the surcharge as wages rise.
    The abolition of the twice-yearly income support bonus on Centrelink and Veterans’ Affairs payments.
    The abolition of the dependent spouse tax offset from July 1.

    One piece of good news that has escaped notice is Treasurer Joe Hockey’s claim that households will save “on average around $550 next year alone” from the abolition of the carbon tax.

    And while the Medicare levy rises to 2 per cent on July 1, it appears the higher tax-free threshold of $19,400 due to start on July 1, 2015 has also been spared the axe

    http://www.smh.com.au/money/budgets-secret-sting-for-pensioners-and-matureage-workers-20140516-zreh5.html
    particolor
    18th May 2014
    4:04pm
    THANK YOU....
    particolor
    18th May 2014
    4:17pm
    I heard one of the State Premiers (C N) say this afternoon at that Meeting .. That due to loss of Federal Funding, that the Electricity Supplement to Pensioners is not Sustainable or some thing to that Effect !!??...YOW !!!
    PlanB
    18th May 2014
    3:39pm
    BTW Aviatorman thanks for that site address
    particolor
    18th May 2014
    4:21pm
    What a well thought out Budget ?? Its got more Kickbacks than a Crank Handle in an A Model Ford !!!
    MICK
    18th May 2014
    4:44pm
    So you thought that Labor was so bad eh? So you believed the Abbott slogans and promises eh? So you think that debt is going to be paid down eh? So you think that the country will be better off under a Liberal government eh?

    Sadly, if you answered YES to all of the above then you have been duped. Bad (voting) decisions are made as none of us has a crystal ball but the important thing is that we make our votes count next time. So for the next year expect ongoing attacks with a back-off 1 year before the next election so that people forget. Hopefully those of us without Alzheimers will not.
    PlanB
    18th May 2014
    4:57pm
    I reckon if they chopped Abbotts hands off he would not be able to talk --see Insiders

    http://www.abc.net.au/insiders/content/2014/s4006775.htm
    particolor
    18th May 2014
    5:06pm
    Lay off him B !! ..He may have Italian Heritage way back !!..Armless = Lye less ERR !! Speechless........And BLA ! BLA !! BLA !!! in the first term in Office Yak Yak.............
    PlanB
    18th May 2014
    5:11pm
    Here is the transcript for those that have limited downloads


    Tony Abbott joins Insiders


    Broadcast: 18/05/2014

    Reporter: Fran Kelly

    Prime Minister Tony Abbott joins Insiders to discuss the full impact of the Federal budget.

    FRAN KELLY: You said before your budget, by sharing the load we lighten the load. Now the truth of this budget is the load falls heaviest on the poorest, on the sickest, on those least able to bear the load. Where is the fairness in this budget?

    TONY ABBOTT: Everyone plays their part. High income earners pay the deficit levy, members of Parliament take a pay freeze, and everyone will pay fuel excise indexation. So I think the load is fairly shared because that's the Australian way.

    But, Fran, let's talk about why this is happening. This is all happening because we were living beyond our means. The former government gave us the six biggest deficits in our history. It was debt and deficit stretching as far as the eye can see. We are not doing this because we are somehow political sadomasochists. We are doing this because it is absolutely necessary for the long-term welfare of our country.

    FRAN KELLY: You get to make the choices about what you do. And you talk about everybody bearing the load. But if you drill in the numbers, there was an example of a single mother on $45,000 a year with one child. This budget was going to cost her around $6,500 - sorry, around $2,690. You said, as we heard there, this will cost you your contribution, around $6,500.

    You earn 11 times more than this woman but you pay 2.5 times the contribution. How is that fair?

    TONY ABBOTT: I just want to get back to the fact that we could not just sit here and do nothing, because to do nothing would be to rob the future. It would be to make our children and grandchildren pay for our excesses or the excesses of the former government. So doing nothing was not an option.

    Now let's look at the precise issue you raised. I don't have front of mind the figures for people on $45,000. But if you look at a sole income family with one child under six on $30,000, even after these changes that family will continue to get almost $19,000 from the taxpayer.

    So I think the fair go principle, which is very important for our country, continues in this budget.

    What we also want to do, though Fran, is encourage people to have a go. We do have to reduce unsustainable expenditure. We do have to reduce what's been described as middle class welfare if all of us are going to prosper in the years ahead.

    FRAN KELLY: Sure, but it comes down to who bears the load. When we put out the notice that you were going to be on the program, we've had letters and calls from pensioners unhappy. One pensioner particularly unhappy at you cutting the Pensioner Education Supplement or payment, another or several unhappy about you cutting the pensioner bonus. Why are you picking on pensioners in this budget?

    TONY ABBOTT: We are not picking on anyone...

    FRAN KELLY: They feel like you are picking on them.

    TONY ABBOTT: We said pre-election that the low income bonus would go. We said pre-election that the Schoolkids Bonus would go.

    FRAN KELLY: You said pre-election no changes to pensions.

    TONY ABBOTT: And there are no changes to pension in this term of Parliament.

    FRAN KELLY: That's not how they feel it because they were getting the payments, now they are not getting the payments.

    TONY ABBOTT: The low-income bonus, we were up-front with people before the election that that was going to go. And we were also quite up-front, Fran, that we would get the budget back under control. You might remember the mantra, it was Stop the Boats, repeal the carbon tax, build the roads of the 21st century and get the budget back under control.

    So people, I think, were on notice that we were going to do what was necessary to ensure that we were not being a burden on our children and grandchildren.

    FRAN KELLY: I wonder how you think, though, that people were on notice that they weren't going to receive cuts to their pensions or weren't going to see cuts to health or cuts to education when you said there would be no cuts to health, no cuts to education. You said it over and over again. Why did you think you could get away with saying that if you weren't going to deliver that?

    TONY ABBOTT: But Fran, again, we have a very serious problem here - a problem where we were living beyond our means. And the first duty of government is not to do what's easy but to do what's right and necessary for our country. And we could not go on running up massive debts for our children and grandchildren to pay. That would be a form of inter-generational theft.

    Now you ask about health and education. We promised that there would be no reductions over the forward estimates. What's happened is that the first of the out years has now come into the forward estimates and we never said we were going to maintain Labor's pie in the sky promises in the out years. We never said that.

    And all these claims of massive cuts to health and education, none of that money was ever in the budget. And what we've said is that there will be a slower rate of growth in what were the out years than Labor promised.

    FRAN KELLY: I think you've got a problem, though, in terms of trust. I mean you are saying now, I think what you're saying, is that the promise to restore the budget was always paramount, but I don't think everybody who heard the other promises thought that. And so now how do we know in the future what to believe when you say things and what not to believe?

    TONY ABBOTT: Well I know that people hear different things. Someone can say...

    FRAN KELLY: Well you said them.

    TONY ABBOTT: …and people hear different things. We constantly talked about Labor spending like a drunken sailor. It was always obvious that we were going to have to rein back unsustainable spending. We constantly talked about Labor indulging in a cash splash with borrowed money. And now we've done what is necessary.

    Look, we could have continued to try to fool people and say "you don't have to change" but that would, frankly, have been pretending to people that our country could somehow go on living on borrowed money.

    You cannot endlessly live on borrowed money, and that's what our country had been doing for the six years of the Labor government.

    FRAN KELLY: I will move on in a moment because you have been asked about the broken promises a lot this week, but before I do, following on from what you said there, play back something you said on ABC Radio before the election.

    Let's have a look.

    TONY ABBOTT (on ABC Radio pre-election): I've seen the disaster that this Government has created for itself by saying one thing and doing another and, John, I don't want to be like that. I really don't. And if we do win the election and we immediately say 'we got it all wrong, we've now got to do all these different things', we will instantly be just as bad as the current Government has been. And I just refuse to be like that.

    FRAN KELLY: With respect, Prime Minister, you are being like that.

    TONY ABBOTT: Well that's in the end for the people to judge, Fran. But I believe we have fundamentally kept faith with the promises we made pre-election.

    Yes, I accept that the deficit levy will impact on the top 3 per cent of taxpayers. Yes, I accept that the fuel excise indexation will cost in the first year the average family 40 cents a week. I accept all of that.

    But we did say that we were going to get the budget back under control. And I believe that this was what the people of Australia elected us to do. If I'm wrong, they will cast their votes accordingly at the next election. But why would I be doing this, why would I be exposing myself, Fran, to a world of political pain ...

    FRAN KELLY: Expending political capital.

    TONY ABBOTT: ..If I didn't think… Why would I be exposing myself, why would my colleagues be exposing themselves and ourselves to a world of political pain if we didn't think it was absolutely necessary for the long-term good of our country?

    FRAN KELLY: Let's go to some of the measures, as I say, all budgets are about choices, you have walked away from the agreement with the states and territories over funding schools and funding hospitals into the future to the tune of $80 billion. It is quite clear in the budget.

    You say you want grownup, adult states. What's grown up and adult about breaking this agreement with the states with no warning?

    TONY ABBOTT: Well we said pre-election that we were not bound in the out years. We explicitly said time and time again pre-election that we were bound by the forward estimates, we weren't bound by the out years. Now, of course, the first of the out years has come into the forward estimates and we have been totally up-front, we've said the money will continue to increase but it will increase at a slower rate than before.

    FRAN KELLY: Eighty-billion dollars less is written in the budget papers. The states say they've got a signed agreement and they are shocked, or are they feigning shock?

    TONY ABBOTT: Well look, I'm not going to run a commentary on the states.

    FRAN KELLY: They are running one on you right now.

    TONY ABBOTT: What I am saying is that what we have done is precisely, precisely, what we said we would do before the election. We said we would honour the then government's commitments over the then forward estimates. We said we weren't bound by their pie in the sky promises for the out years. We said it was unsustainable. We said it was undeliverable. And we're not going to try to deliver it.

    FRAN KELLY: You also said "We're a unity ticket on Gonski and there is no difference between Kevin Rudd and myself for school funding".

    TONY ABBOTT: For four years.

    FRAN KELLY: Do you think people heard the four years?

    TONY ABBOTT: Look, we always said, and this was the subject of argy bargy during the election, if you'll remember Fran, we were accused constantly by Labor during the election of not continuing if Gonski funding. They said this pre-election, and they're right.

    FRAN KELLY: What about the $50 billion for hospitals?

    TONY ABBOTT: And they're right. Again we said we would only be bound over the then forward estimates. The first of the out years has now come into the budget.

    FRAN KELLY: What happens to that schools and hospitals, what happens to the national agreements to lift standards of treatment and schooling?

    TONY ABBOTT: Well again, Fran, let's get back to the problem. The problem is that we were living beyond our means. And we cannot keep spending money that we don't have. We cannot keep mortgaging the future.

    We cannot keep ripping off our children and grandchildren, and this Government won't do that.

    Now we also said pre-election - And I've repeated that regularly since - that we would have a Federation white paper and that would be the opportunity for the Commonwealth and the states to sit down and work out what's going to happen in three years' time. We're not talking about…

    FRAN KELLY: You just pre-empted that, why didn't you wait for the white paper?

    TONY ABBOTT: We are not talking about next week or next month or even next year. We are talking about changes in three years' time. We've got an enormous amount of time to sit down and work things out. But what we are not going to do is continue unsustainable spending with borrowed money. That would be wrong. That would be an offence against the future.

    FRAN KELLY: You've also said that the states should run schools and hospitals. They run them, they should pay for them, they should fund them. But you're taking away this $80 billion. How should the states raise the money? Should they raise it from the taxes they have, the gambling taxes, the payroll taxes, the stamp duties? Should they lift those?

    TONY ABBOTT: Well, Fran this 80 billion was never in any budget. It was an unsustainable promise for the out years made by a government that knew it was never going to have to deliver.

    FRAN KELLY: Are you saying as you look forward, as Prime Minister of this country, you think we can do better in our schools and hospitals without that money? You can be - or are you happy to be Prime Minister of a country that has different standards of hospital care and different standards of school education in different States?

    TONY ABBOTT: I think ...

    FRAN KELLY: We can't have everything without the money, can we?

    TONY ABBOTT: Money isn't everything, Fran. And this is part of the problem. Over the years we have thought the only solution to school problems and to health problems was more money. Now money is important, no doubt about that, but are you really saying, Fran, that we can't be more efficient in schools? Can't be more efficient in hospitals?

    FRAN KELLY: No, but $80 billion is a lot of efficiency.

    TONY ABBOTT: That money was never in any budget. It was a pie in the sky promise by a Labor government that knew it wouldn't be around to deliver on it.

    FRAN KELLY: The states are meeting this afternoon. They say that money was in the agreements they all signed with the Commonwealth, and they want you to stick to it. They say if you don't stick to it, then how else are they going to get this money? Are you considering giving them a share of Commonwealth-raised income tax?

    TONY ABBOTT: Fran, we always said we weren't bound by those agreements in the out years. The first of the out years has come on to the budget. And we've said to the states 'we will continue to increase your funding but not at the same unaffordable rate Labor was promising.'

    We have been absolutely up-front with the states and now have three years to sit down and have a mature, adult discussion about this and work out what the best way forward is.

    FRAN KELLY: Should a bigger, broader GST be part of that discussion?

    TONY ABBOTT: That's a matter for the states. I don't propose….

    FRAN KELLY: Do you have a view?

    TONY ABBOTT: I don't propose changing the GST at all because the GST is a state tax. The revenue all goes to the states...

    FRAN KELLY: It is a Federal tax, but the revenue goes to the states. Under the legislation as it is, all states would have to ask. Now at the moment they are not going to do that, probably because three are facing elections in the next eight months. But if all the states came to you and said 'Prime Minister, we need you to increase the GST,' would you agree to that?

    TONY ABBOTT: Well you're asking me a hypothetical. I don't respond to hypotheticals, Fran. Let's wait and see what happens here. But we've got three years.

    This idea there is some kind of emergency because things are going to have to be adjusted in three years' time is not right. But I'm looking forward to having lots of discussions with the states over coming months and years. And I am absolutely confident that at the end of those discussions, we will continue to have good schools and good hospitals and we'll have a better Federation as well.

    FRAN KELLY: And higher taxes?

    TONY ABBOTT: My objective is lower taxes. That's my objective. I didn't come into politics to put taxes up. I came into politics to bring taxes down, they should be lower, simpler and fairer. And that's what will happen under this Coalition Government.

    FRAN KELLY: I'm glad you mentioned emergency because the States are unhappy. And one State Health Minister is threatening to open the emergency wards in our hospitals to GPs so people can go there, not pay the co-payment and the Commonwealth bears the brunt of that through Medicare rebate. It is going to be chaos.

    TONY ABBOTT: Well look… No, I think if that sounds like it is a creative response by the states.

    FRAN KELLY: You like that idea?

    TONY ABBOTT: Well, look, the states are perfectly entitled to do what's open to them as a sovereign government. And I know in different states in the past, different states have taken advantage of the Medicare arrangement to deliver what they thought were better treatments for their patients, and that's fair enough.

    FRAN KELLY: Prime Minister, it now goes to the Senate. The Senate will be a challenge for you, this one and the next one, you know that, and you've said horse trading will go on. Where are you prepared to horse trade?

    TONY ABBOTT: Well what we aren't prepared to do is sell our kids down the river by continuing to spend way beyond our means.

    What we have laid out for the Australian people this week in the budget is a careful, considered, sensible path back to surplus, and we are not walking away from that. Obviously we are happy to talk about different details with minor parties and independents in the Senate, but they've got to accept that we are the government, we were elected to run the country, we've got to make tough decisions as well as easy decisions. We can't keep this cash splash with borrowed money going, and let's have that discussion.

    FRAN KELLY: One of the toughest decisions, and Labor will oppose this, and so will the Greens I understand, is the decision to keep young people under 30 off the dole for six months if they are not earning or learning, if they are not training. People all across the community regard that as very, very harsh.

    Can you imagine how those people are going to live if they aren't capable of learning, if they aren't capable of going to training because their life is too chaotic or shambolic or - there's many reasons why. What are they going to do?

    TONY ABBOTT: We are not giving up on those people and saying 'OK here is a cheque, we're going to forget about you.' We are not doing that at all. There will be services that will work with people to try to ensure they are either earning or learning. And the highly disadvantaged people will continue to get access to unemployment benefits, but work-ready youngsters won't be allowed to leave school and go on to the dole. They just won't be Fran.

    FRAN KELLY: You can't stop them leaving school…

    TONY ABBOTT: We can.

    FRAN KELLY: …they will, they will because some people's lives are not like your life or my life, they will leave school. How do they live?

    TONY ABBOTT: Well if they leave school and they don't get a job, and they're work-ready, we expect them to go into some form of education or training.

    FRAN KELLY: What's your line in the sand here? You've talked double dissolution. Are you prepared to go to an election if you can't get this budget through, and is this a budget to take to an election?

    TONY ABBOTT: Fran, whenever the next election comes, the people will judge us on what we've done. And before the election we said we'd stop the boats, we'd scrap the carbon tax, build the roads of the 21st century, we'd get the budget back under control. This is precisely what we are doing.

    I believe that we will be able to say to the people at the next election, whenever it is, and I expect it in the middle of 2016, we'll be able to say to the people 'we said this is what we'd do, we've carefully, purposefully, methodically done it. Now, it's in your hands.'

    FRAN KELLY: But you are not threatening a double dissolution over this budget?

    TONY ABBOTT: I am promising a strong and decisive Government. That's what I'm promising. And I am confident that the minor parties and the Independents in the Senate will understand that we could not go on living the way we were, we could not go on mortgaging the future. Now if they don't like what we are putting up, what are they going to put up as an alternative?

    FRAN KELLY: Thank you for joining us.

    TONY ABBOTT: Thank you Fran
    PlanB
    18th May 2014
    5:11pm
    Here is the transcript for those that have limited downloads


    Tony Abbott joins Insiders


    Broadcast: 18/05/2014

    Reporter: Fran Kelly

    Prime Minister Tony Abbott joins Insiders to discuss the full impact of the Federal budget.

    FRAN KELLY: You said before your budget, by sharing the load we lighten the load. Now the truth of this budget is the load falls heaviest on the poorest, on the sickest, on those least able to bear the load. Where is the fairness in this budget?

    TONY ABBOTT: Everyone plays their part. High income earners pay the deficit levy, members of Parliament take a pay freeze, and everyone will pay fuel excise indexation. So I think the load is fairly shared because that's the Australian way.

    But, Fran, let's talk about why this is happening. This is all happening because we were living beyond our means. The former government gave us the six biggest deficits in our history. It was debt and deficit stretching as far as the eye can see. We are not doing this because we are somehow political sadomasochists. We are doing this because it is absolutely necessary for the long-term welfare of our country.

    FRAN KELLY: You get to make the choices about what you do. And you talk about everybody bearing the load. But if you drill in the numbers, there was an example of a single mother on $45,000 a year with one child. This budget was going to cost her around $6,500 - sorry, around $2,690. You said, as we heard there, this will cost you your contribution, around $6,500.

    You earn 11 times more than this woman but you pay 2.5 times the contribution. How is that fair?

    TONY ABBOTT: I just want to get back to the fact that we could not just sit here and do nothing, because to do nothing would be to rob the future. It would be to make our children and grandchildren pay for our excesses or the excesses of the former government. So doing nothing was not an option.

    Now let's look at the precise issue you raised. I don't have front of mind the figures for people on $45,000. But if you look at a sole income family with one child under six on $30,000, even after these changes that family will continue to get almost $19,000 from the taxpayer.

    So I think the fair go principle, which is very important for our country, continues in this budget.

    What we also want to do, though Fran, is encourage people to have a go. We do have to reduce unsustainable expenditure. We do have to reduce what's been described as middle class welfare if all of us are going to prosper in the years ahead.

    FRAN KELLY: Sure, but it comes down to who bears the load. When we put out the notice that you were going to be on the program, we've had letters and calls from pensioners unhappy. One pensioner particularly unhappy at you cutting the Pensioner Education Supplement or payment, another or several unhappy about you cutting the pensioner bonus. Why are you picking on pensioners in this budget?

    TONY ABBOTT: We are not picking on anyone...

    FRAN KELLY: They feel like you are picking on them.

    TONY ABBOTT: We said pre-election that the low income bonus would go. We said pre-election that the Schoolkids Bonus would go.

    FRAN KELLY: You said pre-election no changes to pensions.

    TONY ABBOTT: And there are no changes to pension in this term of Parliament.

    FRAN KELLY: That's not how they feel it because they were getting the payments, now they are not getting the payments.

    TONY ABBOTT: The low-income bonus, we were up-front with people before the election that that was going to go. And we were also quite up-front, Fran, that we would get the budget back under control. You might remember the mantra, it was Stop the Boats, repeal the carbon tax, build the roads of the 21st century and get the budget back under control.

    So people, I think, were on notice that we were going to do what was necessary to ensure that we were not being a burden on our children and grandchildren.

    FRAN KELLY: I wonder how you think, though, that people were on notice that they weren't going to receive cuts to their pensions or weren't going to see cuts to health or cuts to education when you said there would be no cuts to health, no cuts to education. You said it over and over again. Why did you think you could get away with saying that if you weren't going to deliver that?

    TONY ABBOTT: But Fran, again, we have a very serious problem here - a problem where we were living beyond our means. And the first duty of government is not to do what's easy but to do what's right and necessary for our country. And we could not go on running up massive debts for our children and grandchildren to pay. That would be a form of inter-generational theft.

    Now you ask about health and education. We promised that there would be no reductions over the forward estimates. What's happened is that the first of the out years has now come into the forward estimates and we never said we were going to maintain Labor's pie in the sky promises in the out years. We never said that.

    And all these claims of massive cuts to health and education, none of that money was ever in the budget. And what we've said is that there will be a slower rate of growth in what were the out years than Labor promised.

    FRAN KELLY: I think you've got a problem, though, in terms of trust. I mean you are saying now, I think what you're saying, is that the promise to restore the budget was always paramount, but I don't think everybody who heard the other promises thought that. And so now how do we know in the future what to believe when you say things and what not to believe?

    TONY ABBOTT: Well I know that people hear different things. Someone can say...

    FRAN KELLY: Well you said them.

    TONY ABBOTT: …and people hear different things. We constantly talked about Labor spending like a drunken sailor. It was always obvious that we were going to have to rein back unsustainable spending. We constantly talked about Labor indulging in a cash splash with borrowed money. And now we've done what is necessary.

    Look, we could have continued to try to fool people and say "you don't have to change" but that would, frankly, have been pretending to people that our country could somehow go on living on borrowed money.

    You cannot endlessly live on borrowed money, and that's what our country had been doing for the six years of the Labor government.

    FRAN KELLY: I will move on in a moment because you have been asked about the broken promises a lot this week, but before I do, following on from what you said there, play back something you said on ABC Radio before the election.

    Let's have a look.

    TONY ABBOTT (on ABC Radio pre-election): I've seen the disaster that this Government has created for itself by saying one thing and doing another and, John, I don't want to be like that. I really don't. And if we do win the election and we immediately say 'we got it all wrong, we've now got to do all these different things', we will instantly be just as bad as the current Government has been. And I just refuse to be like that.

    FRAN KELLY: With respect, Prime Minister, you are being like that.

    TONY ABBOTT: Well that's in the end for the people to judge, Fran. But I believe we have fundamentally kept faith with the promises we made pre-election.

    Yes, I accept that the deficit levy will impact on the top 3 per cent of taxpayers. Yes, I accept that the fuel excise indexation will cost in the first year the average family 40 cents a week. I accept all of that.

    But we did say that we were going to get the budget back under control. And I believe that this was what the people of Australia elected us to do. If I'm wrong, they will cast their votes accordingly at the next election. But why would I be doing this, why would I be exposing myself, Fran, to a world of political pain ...

    FRAN KELLY: Expending political capital.

    TONY ABBOTT: ..If I didn't think… Why would I be exposing myself, why would my colleagues be exposing themselves and ourselves to a world of political pain if we didn't think it was absolutely necessary for the long-term good of our country?

    FRAN KELLY: Let's go to some of the measures, as I say, all budgets are about choices, you have walked away from the agreement with the states and territories over funding schools and funding hospitals into the future to the tune of $80 billion. It is quite clear in the budget.

    You say you want grownup, adult states. What's grown up and adult about breaking this agreement with the states with no warning?

    TONY ABBOTT: Well we said pre-election that we were not bound in the out years. We explicitly said time and time again pre-election that we were bound by the forward estimates, we weren't bound by the out years. Now, of course, the first of the out years has come into the forward estimates and we have been totally up-front, we've said the money will continue to increase but it will increase at a slower rate than before.

    FRAN KELLY: Eighty-billion dollars less is written in the budget papers. The states say they've got a signed agreement and they are shocked, or are they feigning shock?

    TONY ABBOTT: Well look, I'm not going to run a commentary on the states.

    FRAN KELLY: They are running one on you right now.

    TONY ABBOTT: What I am saying is that what we have done is precisely, precisely, what we said we would do before the election. We said we would honour the then government's commitments over the then forward estimates. We said we weren't bound by their pie in the sky promises for the out years. We said it was unsustainable. We said it was undeliverable. And we're not going to try to deliver it.

    FRAN KELLY: You also said "We're a unity ticket on Gonski and there is no difference between Kevin Rudd and myself for school funding".

    TONY ABBOTT: For four years.

    FRAN KELLY: Do you think people heard the four years?

    TONY ABBOTT: Look, we always said, and this was the subject of argy bargy during the election, if you'll remember Fran, we were accused constantly by Labor during the election of not continuing if Gonski funding. They said this pre-election, and they're right.

    FRAN KELLY: What about the $50 billion for hospitals?

    TONY ABBOTT: And they're right. Again we said we would only be bound over the then forward estimates. The first of the out years has now come into the budget.

    FRAN KELLY: What happens to that schools and hospitals, what happens to the national agreements to lift standards of treatment and schooling?

    TONY ABBOTT: Well again, Fran, let's get back to the problem. The problem is that we were living beyond our means. And we cannot keep spending money that we don't have. We cannot keep mortgaging the future.

    We cannot keep ripping off our children and grandchildren, and this Government won't do that.

    Now we also said pre-election - And I've repeated that regularly since - that we would have a Federation white paper and that would be the opportunity for the Commonwealth and the states to sit down and work out what's going to happen in three years' time. We're not talking about…

    FRAN KELLY: You just pre-empted that, why didn't you wait for the white paper?

    TONY ABBOTT: We are not talking about next week or next month or even next year. We are talking about changes in three years' time. We've got an enormous amount of time to sit down and work things out. But what we are not going to do is continue unsustainable spending with borrowed money. That would be wrong. That would be an offence against the future.

    FRAN KELLY: You've also said that the states should run schools and hospitals. They run them, they should pay for them, they should fund them. But you're taking away this $80 billion. How should the states raise the money? Should they raise it from the taxes they have, the gambling taxes, the payroll taxes, the stamp duties? Should they lift those?

    TONY ABBOTT: Well, Fran this 80 billion was never in any budget. It was an unsustainable promise for the out years made by a government that knew it was never going to have to deliver.

    FRAN KELLY: Are you saying as you look forward, as Prime Minister of this country, you think we can do better in our schools and hospitals without that money? You can be - or are you happy to be Prime Minister of a country that has different standards of hospital care and different standards of school education in different States?

    TONY ABBOTT: I think ...

    FRAN KELLY: We can't have everything without the money, can we?

    TONY ABBOTT: Money isn't everything, Fran. And this is part of the problem. Over the years we have thought the only solution to school problems and to health problems was more money. Now money is important, no doubt about that, but are you really saying, Fran, that we can't be more efficient in schools? Can't be more efficient in hospitals?

    FRAN KELLY: No, but $80 billion is a lot of efficiency.

    TONY ABBOTT: That money was never in any budget. It was a pie in the sky promise by a Labor government that knew it wouldn't be around to deliver on it.

    FRAN KELLY: The states are meeting this afternoon. They say that money was in the agreements they all signed with the Commonwealth, and they want you to stick to it. They say if you don't stick to it, then how else are they going to get this money? Are you considering giving them a share of Commonwealth-raised income tax?

    TONY ABBOTT: Fran, we always said we weren't bound by those agreements in the out years. The first of the out years has come on to the budget. And we've said to the states 'we will continue to increase your funding but not at the same unaffordable rate Labor was promising.'

    We have been absolutely up-front with the states and now have three years to sit down and have a mature, adult discussion about this and work out what the best way forward is.

    FRAN KELLY: Should a bigger, broader GST be part of that discussion?

    TONY ABBOTT: That's a matter for the states. I don't propose….

    FRAN KELLY: Do you have a view?

    TONY ABBOTT: I don't propose changing the GST at all because the GST is a state tax. The revenue all goes to the states...

    FRAN KELLY: It is a Federal tax, but the revenue goes to the states. Under the legislation as it is, all states would have to ask. Now at the moment they are not going to do that, probably because three are facing elections in the next eight months. But if all the states came to you and said 'Prime Minister, we need you to increase the GST,' would you agree to that?

    TONY ABBOTT: Well you're asking me a hypothetical. I don't respond to hypotheticals, Fran. Let's wait and see what happens here. But we've got three years.

    This idea there is some kind of emergency because things are going to have to be adjusted in three years' time is not right. But I'm looking forward to having lots of discussions with the states over coming months and years. And I am absolutely confident that at the end of those discussions, we will continue to have good schools and good hospitals and we'll have a better Federation as well.

    FRAN KELLY: And higher taxes?

    TONY ABBOTT: My objective is lower taxes. That's my objective. I didn't come into politics to put taxes up. I came into politics to bring taxes down, they should be lower, simpler and fairer. And that's what will happen under this Coalition Government.

    FRAN KELLY: I'm glad you mentioned emergency because the States are unhappy. And one State Health Minister is threatening to open the emergency wards in our hospitals to GPs so people can go there, not pay the co-payment and the Commonwealth bears the brunt of that through Medicare rebate. It is going to be chaos.

    TONY ABBOTT: Well look… No, I think if that sounds like it is a creative response by the states.

    FRAN KELLY: You like that idea?

    TONY ABBOTT: Well, look, the states are perfectly entitled to do what's open to them as a sovereign government. And I know in different states in the past, different states have taken advantage of the Medicare arrangement to deliver what they thought were better treatments for their patients, and that's fair enough.

    FRAN KELLY: Prime Minister, it now goes to the Senate. The Senate will be a challenge for you, this one and the next one, you know that, and you've said horse trading will go on. Where are you prepared to horse trade?

    TONY ABBOTT: Well what we aren't prepared to do is sell our kids down the river by continuing to spend way beyond our means.

    What we have laid out for the Australian people this week in the budget is a careful, considered, sensible path back to surplus, and we are not walking away from that. Obviously we are happy to talk about different details with minor parties and independents in the Senate, but they've got to accept that we are the government, we were elected to run the country, we've got to make tough decisions as well as easy decisions. We can't keep this cash splash with borrowed money going, and let's have that discussion.

    FRAN KELLY: One of the toughest decisions, and Labor will oppose this, and so will the Greens I understand, is the decision to keep young people under 30 off the dole for six months if they are not earning or learning, if they are not training. People all across the community regard that as very, very harsh.

    Can you imagine how those people are going to live if they aren't capable of learning, if they aren't capable of going to training because their life is too chaotic or shambolic or - there's many reasons why. What are they going to do?

    TONY ABBOTT: We are not giving up on those people and saying 'OK here is a cheque, we're going to forget about you.' We are not doing that at all. There will be services that will work with people to try to ensure they are either earning or learning. And the highly disadvantaged people will continue to get access to unemployment benefits, but work-ready youngsters won't be allowed to leave school and go on to the dole. They just won't be Fran.

    FRAN KELLY: You can't stop them leaving school…

    TONY ABBOTT: We can.

    FRAN KELLY: …they will, they will because some people's lives are not like your life or my life, they will leave school. How do they live?

    TONY ABBOTT: Well if they leave school and they don't get a job, and they're work-ready, we expect them to go into some form of education or training.

    FRAN KELLY: What's your line in the sand here? You've talked double dissolution. Are you prepared to go to an election if you can't get this budget through, and is this a budget to take to an election?

    TONY ABBOTT: Fran, whenever the next election comes, the people will judge us on what we've done. And before the election we said we'd stop the boats, we'd scrap the carbon tax, build the roads of the 21st century, we'd get the budget back under control. This is precisely what we are doing.

    I believe that we will be able to say to the people at the next election, whenever it is, and I expect it in the middle of 2016, we'll be able to say to the people 'we said this is what we'd do, we've carefully, purposefully, methodically done it. Now, it's in your hands.'

    FRAN KELLY: But you are not threatening a double dissolution over this budget?

    TONY ABBOTT: I am promising a strong and decisive Government. That's what I'm promising. And I am confident that the minor parties and the Independents in the Senate will understand that we could not go on living the way we were, we could not go on mortgaging the future. Now if they don't like what we are putting up, what are they going to put up as an alternative?

    FRAN KELLY: Thank you for joining us.

    TONY ABBOTT: Thank you Fran
    MICK
    18th May 2014
    7:01pm
    Stone the crows PlanB, is this spam? I should talk.

    Did you know that Abbott had studied for the priesthood as a young man? Given that more than a few catholic priests have been shown to be pedophiles why does the disturbing behaviour of Abbott not surprise me? I can see the dishonesty, deception and 'do what I say' control streak in him.
    particolor
    18th May 2014
    7:14pm
    Well I find this Subject Fascinating !! Never in My life anyhow have I seen a Budget get such a Rubbishing !!.. And the Monarchy in More trouble than a Werribee Duck !!..
    Long live King Snake Oil !!
    MICK
    18th May 2014
    7:40pm
    Maybe you mean this budget IS rubbish. Certainly an affront to decent Australians, but apparently the best thing since sliced cheese for the rich and big business. That's what happens when you own a political party in power though.
    particolor
    18th May 2014
    9:01pm
    As Shakespeare would say... Rubbish by any other name would Smell as Bad !!.
    And as the Sun sinks slowly on Parliament House Joe has a Big NT Steak and an Havana Cigar !!.."AHH! Life is Good At The Top!!".." I wonder what the poor people are having ??"
    MICK
    18th May 2014
    9:27pm
    If Abbott and his lackey Hockey have anything to say about it: gruel!!
    PlanB
    19th May 2014
    5:23am
    Sorry for the repeat there but I tried to remove but there was NO remove button.

    Yes Abbott left his pregnant girl friend to join the priesthood, -- shows you how fair dinkum he is ---was in that for 3 years and couldn't hack it--maybe because it restricted him from screwing around.
    PlanB
    19th May 2014
    5:25am
    Now he is screwing US
    MICK
    19th May 2014
    8:59am
    Perfect for a priesthood which seems to have abandoned all that used to be Christian.
    MICK
    19th May 2014
    8:59am
    Perfect for a priesthood which seems to have abandoned all that used to be Christian.
    PlanB
    19th May 2014
    9:13am
    Yes you can say that again Mick
    particolor
    19th May 2014
    9:31am
    There should be a Remove Button on Governments for More than one Lie !!