Sorry smokers, students and parents, budget 2016/17 has dropped
Welcome back, it’s that time of year again when we have a crucial look at the damages done under the Liberal Government. Still licking my wounds from last year budget I came into this year hopeful that hey maybe public education would make advancements further and we’ll see universities not the cuts that cause universities to cut music and languages across the nation. That sounds cynical but hey, life as 21 year old student can be rough.
For starters I think we should at least have a look at the positives that are coming from this year’s budget and the growth experienced from last year.
POSITIVE COOL THINGS
Unemployment is at a low, sick
Though mining is slowly destroying not just Australia but the world one benefit has been the way in which it has (a) created jobs and (b) has brought a lot of economic gain due to domestic and international investors. Through our rich raw resources (the triple R threat) we have been able to show a great margin of growth though, thankfully, is finally being acknowledged that our big mining boom of half-a-decade with start to slow. On another note just under 300,000 jobs were created over the past year, the highest numbers we have seen since 2007 (thanks Kevin 07’). Not only this we will a crisp $840 million be put in place for a Youth Employment Package to help our young people secure jobs.
Still wanting to continue on the trade of minerals and resources the Liberal Government is hoping to continue the rise of tourism of nations as over the past year we have seen a ground breaking amount of visitors and international students entering our shores (maybe we shouldn’t destroy the reef then?). Jokes aside it is nice to see our nation show international popularity putting our treatment of boat people aside. Over the next the aim is see our tourists numbers grow alongside international students wishing to study across our country. What this will do is create more jobs throughout the tourism sector as we see more demand for everything holiday. We do have the best beaches after all.
The economy side of things
Australia been experiencing 26 years of economic growth and after all our hard work we are growing at faster rate than ALL ADVANCED ECONOMIES. What this has created is historically low interest rates and lower exchange rates which hopefully we will see get better over the coming year. Due to strong trade agreements with South East Asia our current economic standings should continue to grow over the coming years.
On top of this, continuing the want to reduce of national debt our targets are showing that by 2020 we’ll debt free. Though in some ways this could be looked at as a positive we’ll also look at this through our negative lens later. It will be interesting to see this happen though because post-GFC not a lot of country have quite been able to recover. So like, props Malcom, good luck and all that.
Small Business, saving of your corner takeaway
Aims for the coming year include a tax cut to help small businesses find their feet in times of need. Beginning July 1 we will see a 1% tax cut going from 28.5% to 27.5% whilst also raising the margin for business to come under this new cut. Currently it stands that businesses earning $2 million or less receive the 28.5% cut but beginning July 1 this yearly earning is being raised to $10 million giving an extra 870,000 businesses an easier time whilst also helping 3.4 million workers across the nation currently employed by small businesses. (Conspiracy alert: maybe this is an attempt to help take away penalty fees. #first)
Something pretty fun announced is the new investments being made regarding roads, railways and dams. Over the coming year, hopefully, we will start to see a lot of means of transport grow in improvement with the Liberal Government looking into fixing more roads and creating more directs roots across our bare nation. New roads, railways and better means of water are all coming our way, what a time to be alive. Not only this, ‘Smart Cities Plan’ is being putting in place to help businesses flourish across our nation raising our quality of work and living.
Road Recovery and National Network Maintenance are also coming our way.
It has been announced that full university deregulation has been cut which is a sigh of relief whether you quite knew about it or not. Basically it would give universities the right to charge what they want for universities degrees whilst also being placed alongside different rules regarding payment i.e. the introduction of interest rates on HECS and cool things like that.
TOBACCO – POSITIVE OR NEGATIVE?
This here will be our transitional from positives to the negatives as really this is a tax hike that will either leave you happy or hella sad with a huge hole in your pocket. It has been announced, even before the Budget Release, that over the coming four years we will see an extremely high tax hike on tobacco aiming to make packets of your favourite durries $40 by 2020. This is a hike of around 12.5% per year. No matter how you place yourself on this argument at least its fun to see Australia flipping the bird to the tobacco industry. Hella evil bad bad not good. Maybe they should use some this extra smoking tax to create better institution to help those die hard tobacco fans quit.
NEGATIVE – NOT VERY COOL THINGS
To jump back to education so quickly is rather sad but not a lot is really being done regarding both schools and universities. As we saw over the past year the Gonski Reforms have been scrapped putting shade over our current education sector. All the plans announced for schools only regards a raise in funding of $1.2 billion which does really nice except for fact we’re not going to see this rise until 2018 which is fairly sad. It is a dramatic less amount than that promised in the 2013 election using Gonski approach.
To add, though university deregulation has been scrapped (let’s all reduce), we will $2 billion cut to higher education. Maybe this is why they want to see a rise in international students and the crazy huge fees they have to pay. Just think about it like this, in just a few years we won’t have to worry about being a nation with some of lowest debt, because we won’t have debt. Sick cool times.
Sorry guys but as a regular theme has been this budget, broken promises, working parents won’t quite be acknowledged just yet. Subsidies designed to help those that have to work to afford health, education and recreation for their kids are still coming our way, only problem is they won’t be here till 2018. If only these parents earned more, like a lot more then they wouldn’t be feeling such a bite as it was also announced the upper-middle class will be experiencing a bit more leeway in their taxes. The top 25% won’t be feeling the burn that’s for sure.
Though they are really proud of themselves for putting $1.1 billion into science this time around, it is much much much less than previous years and seems that it will continue to fall. Just last year it was $2 billion which means it seems they’re rather keen to see this amount get lower. To add, no additions have been made to research across the nations which has also been steadily declining losing $300 million just a year ago.
As with education, all promised money for the public healthcare system (with a heavy focus on public hospitals) won’t be felt until 2018.
Putting the previous points into account, the amount that is being put into defence is alarming considering the losses we will be facing. Though claims over 5000 jobs looks pretty, the amount we’re putting into isn’t enough to justify. Especially with the cuts to science and education in mind it’s strange to put so much money into something that needs both of those things. Could this be our next big step trying to become the big red, white and blue of America?
THE SAVINGS HELL YEAH
As a way to get one step closer to deficit a lot, and I mean a lot, of sectors will be experiencing rather large losses all in the name of being that cool country with no debt. Some notable cuts that stand out is the National Disability Scheme Savings Fund losing $164.4 million, Higher Education Reform is losing $133.7 million, Asset Recycling Initiative is losing $452.7 million and clean and renewable energy innovation is getting a $47.5 million cut.
It’s getting quite obvious where the Liberal government is wanting to go over the coming year.
THANKS FOR MAKING IT TO THE END
Some last thoughts that have arisen since the announcement include the assumption that it’s possible the Liberal Party is being far too optimistic about it all. A lot of the stuff that has been announced personally has seemed quite radically conservative strictly saving money cutting everything in sight. Though it would be nice to land in a situation where we are financially sound I really don’t think this is the way to go about it.