Federal Budget 2016: What it means for South Australia
SOUTH Australia’s nation-leading unemployment crisis will be hit in a three-pronged attack of new training for young jobseekers, tax cuts for small business and big spending on defence.
Budget 2016
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- MAIN WRAP: Job creation centrepiece of Budget
- REVEALED: Budget winners and losers
- ANALYSIS: Is this Budget enough for Coalition to retain power?
- KOCHIE’S VERDICT: There’s good news and bad news
- ANDREW BOLT: ‘Gunna Budget’ nothing but bunch of IOUs
SOUTH Australia’s nation-leading unemployment crisis will be hit in a three-pronged attack of new training for young jobseekers, tax cuts for small business and big spending on defence.
Last week’s blockbuster submarines announcement has locked away $90 billion in defence programs for the state, which the Coalition hopes will be a foundation for economic recovery.
In addition, the total amount of cash handed to SA by the Federal Government will leap from $8.9 billion to $10 billion in the coming financial year as GST returns surge further ahead.
However, the Budget is lacking in detail about a plan to save the Whyalla steelworks as the state and federal governments remain locked in discussions with the administrators.
SA Treasurer Tom Koutsantonis on Monday announced a $10 million loans scheme to help businesses in the Arrium supply chain, and is prepared to help fund a steelworks upgrade.
The state also missed out on a major new infrastructure announcement, as other states get cash for rail and airport building. However, SA is considered to have fought well above its weight in recent years by securing money for three separate South Rd upgrades in the past two budgets.
It does include detail on $7.5 million in compensation for an SA community earmarked for a low-level nuclear waste dump, and a plan to send other waste to France for reprocessing.
Treasurer Scott Morrison’s first Budget also starkly lays out another major difference between SA and the rest of the nation. The Australia-wide jobs growth rate is expected to be 2.1 per cent in the coming year, a staggering three times higher than what is currently projected for SA.
Mr Morrison said the transition to a more diversified economy, forced by the tailing off of sectors like mining and manufacturing, required workers to build new skills.
The Budget estimates 2800 jobs from subs and 2000 from the future frigates, which are being exclusively built in Adelaide. Four hundred offshore patrol vessel jobs will be split with Perth.
“Through our 20-year defence industry plan, we will secure an advanced local defence manufacturing industry, driving new hi-tech jobs in Australia,” Mr Morrison said.
“The nine future frigates, 12 offshore patrol vessels and 12 new regionally superior submarines will do the job of boosting our defence capability, but they will also drive jobs and growth in the new economy we are building ... right across the supply chain of our national economy.
A state dominated by small and medium businesses will also get a lift from tax reform, as the Federal Government unveils a 10-year plan to get their tax rates down and investment up.
“We ... share the ambition for small businesses to become bigger businesses,” he said.
“We will not be able to rely on our natural advantages in resources to secure the jobs of the future like we have in the past. If we wish to continue to see our living standards rise with more jobs and higher wages, we need to ensure that our tax system encourages investment.”
Business SA has long warned that local firms are deterred from hiring, especially young people, due to additional costs including state payroll tax and on-the-job training.
Mr Morrison’s work for the dole overhaul aims to put more than 100,000 young people to work.
It will include internships with businesses, and top-up payments of $200 per week for workers.
The Federal Government has also sought to repair a rift with the states by returning a fraction of the $80 billion in health and education funding which was axed from the Budget in 2014.
The “work and earn” Federal Budget creates a political predicament for Mr Koutsantonis ahead of his own unveiling of documents next month. With the Coalition in full election mode, it has moved to smooth the waters in SA by delivering a huge gesture of goodwill on jobs.
The direct investment of subs and frigates has now been augmented with training for workers and tax cuts for businesses that is aimed at helping individuals carve their own path.
They also rob Mr Koutsantonis of a political bogeyman on whom much of the state’s economic woes have been blamed in the past three years. The closure of Holden and the fate of Whyalla remain likely political flashpoints. However, the Coalition has offered appeasement in the form of frigates and subs, moving past the blame game but also putting the jobs ball in SA Labor’s court.
WHAT THE BUDGET MEANS FOR DIFFERENT SOUTH AUSTRALIANS
UNDER 25
Name: Jason Byrne
Age: 20
Suburb: Woodcroft
Occupation: Student
Marital status: Long-term girlfriend
Voting last election: I wasn’t old enough to vote in the last Federal Election but I voted Labor at the 2014 state election
Who are you planning to vote for next time: I will be voting for Labor at the Federal Election
Wishlist — did they get what they want?
1. No 20 per cent cut to higher education funding and no deregulated fees. YES
2. Australia needs to take more action on climate change and the Budget has to reflect our goals as a nation for doing our part. NO
3. The government has to stop the cuts to domestic violence services, which we have seen in the last six months. YES
FIRST HOMEBUYER
Name: Sarah Hein
Age: 31
Suburb: Kurralta Park
Occupation: Teacher
Marital status: Single
Voting last election: Liberal
Who planning to vote for next time: Undecided
Wishlist — did they get what they want?
1. More funding for public and independent schools. YES
2. It would be great to see a first homeowners grant that applies to purchasing an already established home. NO
EMPTY NESTERS
Name: Tony Simmons
Age: 57
Occupation: Financial adviser
Name: Linda Simmons
Age: 55
Occupation: Early childhood worker
Suburb: St Peters
Marital status: Married
Voting last election: Liberal
Who planning to vote for next time: Liberal
Wishlist - did they get what they want?
1. A progressive and equitable tax system that stimulates job growth generally and employment opportunities for our children specifically. YES
2. On a state basis, provide incentives for businesses to relocate or start up in Adelaide through lower state taxes including payroll tax and further stamp duty exemptions. YES
3. On a Federal basis expand consumption taxes while making an allowance for affected low income earners. YES
4. Assist funding of workers own retirements through flexible superannuation contribution rules that although may put a cap on contributions allow flexibility of contributions regardless of age. NO
MIDDLE CLASS FAMILY
Name: Stewart Brown
Age: 47
Suburb: Kingswood
Occupation: Manager
Marital status: Married
Voting last election: Greens
Who planning to vote for next time: Leaning to Liberal
Wishlist — did they get what they want?
1. Policies that make the best possible medical facilities available to everyone. NO
2. More research positions to ensure our young people don’t have to leave the country for those jobs. YES
3. More money for early education and especially for literacy to ensure everyone gets a good start in life. NO
4. A fairer tax system where the big companies pay their fair share. YES
MANUFACTURING WORKER
Name: Michelle Liesker,
Age: 44.
Town/Suburb: Salisbury North.
Occupation: Learning and Development Manager at Ellex Medical Systems.
Marital status: Single.
Voting last election: Greens (with Liberal preferences).
Who you plan to vote for next time: Undecided. I will vote for the party I think will improve living standards and do the best job for the future of Australia.
Wishlist — did they get what they want?
1. I would like job prospects to improve. YES
2. I think there is a place for free trade but not to the detriment of Australian jobs and products. NO
3. Companies should be responsible for their emissions and product cycle from cradle to grave. NO
Originally published as Federal Budget 2016: What it means for South Australia
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