Today’s Budget update is a clear indication that the Abbott Government’s first Budget continues to inflict significant damage on the Australian economy.
The Abbott Government was elected promising to improve the Budget. They promised it would get better – instead it has become so much worse.
Under the Abbott Government:
Unemployment has risen to its highest level in 12 years at 6.3 per cent today, and is expected to now rise to 6.5 per cent by the middle of next year, while youth unemployment is at 14.5 per cent;
Families will be $6,000 worse off a year, pensioners will be worse off and students will be forced to pay $100,000 for a university degree;
Australians will have to pay a new GP tax every time they go to the doctor and motorists have to pay increased Petrol Tax every time they fill up their car;
The deficit has worsened under Tony Abbott in every single year;
The Budget has blown out by $16.4 billion since Joe Hockey came to office
Net debt grows every single year; and
Under the Abbott Government spending has increased by $13.7 billion over the forward estimates.
This unfair Budget has damaged consumer and business confidence all year, hurting the economy and putting even more cost of living pressure on low and middle income families.
Today’s results are very clear. The Government’s unfair Budget is having a negative impact on business confidence, on consumer confidence and on Australia’s unemployment rate.
This is Tony Abbott’s and Joe Hockey’s Budget disaster – and they are entirely responsible for it.
Before the election Joe Hockey said:
“I’m not afraid to accept responsibility and I’m not afraid to be accountable. We will own it from day one. We will be responsible for the Australian economy.”
Joe Hockey – 6 August 2013
To add insult to injury, the Abbott Government is spending tens of millions of dollars on an expensive advertising campaign for its unfair Budget, including plans for $100,000 degrees and new GP Tax.
Labor has always taken a constructive approach to Budget management, including supporting more than $20 billion of measures that improve the Budget bottom line.
Since coming to office Joe Hockey has foregone more than $1 billion in revenue by scrapping Labor’s changes to offshoring of corporate profits to tax havens and changes to high income superannuation.
The Government’s lack of a plan to create Australian jobs is having an impact on the economy; Australia needs a plan for jobs.
Labor will fight to protect the living standards, jobs and opportunities of low and middle income Australians. Labor believes in a strong economy that delivers for all Australians and doesn’t leave people behind.
At election and the Pre-election Economic and Fiscal Outlook (PEFO) – produced by Treasury and the Department of Finance:
Deficit for 2014-15 was $24.0 billion
Net debt for 2014-15 was $212.1 billion
Unemployment was forecast to peak at 6.25 per cent
Consumer confidence was well above average levels
Jobs growth forecast to be 1.5 per cent in 2014-15
Wages were growing
Deficit is $40.4 billion an increase of nearly 70 per cent
Net debt is $244.8 billion an increase of over 15 per cent
Unemployment is forecast to rise to 6.5 per cent in 2014-15
Consumer confidence is down 18 per cent from the election
Jobs growth forecast revised down to be 1 per cent in 2014-15
Australia is the midst of an “income recession”.