Federal budget 2019: The winners and losers
All eyes were meant to be on Treasurer Josh Frydenberg delivering his first Budget speech but it was hard not to be distracted.
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Treasurer Josh Frydenberg handed down his first Budget last night, which includes tax cuts for millions of Australians and a surplus for the first time in 12 years.
And while all eyes were meant to be on the treasurer it was hard not to be distracted by former Foreign Minister Julie Bishop attending her last Budget speech.
The retiring MP choose a very eye-catching blue sparkly dress and it got plenty of reaction.
Only Julie Bishop can get away with rocking up to budget night wearing a $1299 Rachel Gilbert dress https://t.co/F6bnC8UQvH
— Benita Kolovos (@benitakolovos) April 2, 2019
I love Julie Bishop’s style going out with glitz and glamor this #budget2019
— Roanna Dawson (@RoDawson) April 2, 2019
But now back to the serious stuff.
The 2019 Budget is a pre-election sweetener designed to sell the Coalition Government’s economic management credentials while delivering hip-pocket relief for voters.
“Tonight, I announce that the Budget is back in the black and Australia is back on track,” Mr Frydenberg said to a roar of cheers from the government benches.
The Budget projections are for a $7.1 billion surplus in 2019-20, which he said was a $55 billion turnaround on when the government came to power.
“Australia is stronger than when we came to government six years ago,” Mr Frydenberg said.
“Growth is higher. Unemployment is lower. There are fewer people on welfare. There are a record number of Australians with a job.”
While the government is earning more than it spends for the first time in more than a decade, Mr Frydenberg has also outlined a long-term planned reduction in net debt.
However, the treasurer said the country faces significant fiscal challenges, including the slowing global economy.
“Communities are feeling the impact of flood, fire and drought. Families face cost of living pressures and everyone one of us wants to see wages growing faster.”
The solutions to those challenges “are not higher taxes”, Mr Frydenberg said, but growing the economy, lowering taxes and investment in infrastructure.
RELATED: What the 2019 federal Budget means for you
TAX CUTS
Mr Frydenberg announced $158 billion of tax relief “for hardworking Australians”, which he said were “the largest personal income tax cuts since the Howard Government”.
The low- and middle-income tax offset, introduced last year, will double.
“Taxpayers earning up to $126,000 a year, including teachers, tradies and nurses, will receive a tax cut,” he said.
“For a single-income family, this means $1,080 in your pocket per year. And for families on a dual income, this is up to $2,160 per year in your pocket.”
EASING THE SQUEEZE
The Budget also includes a plan to boost infrastructure spending to $100 billion over the coming decade.
“We will deliver new infrastructure projects to ease congestion in our cities, to unlock the potential of our regions, to better manage population growth, and to improve safety on our roads,” Mr Frydenberg said.
DROUGHT RECOVERY
The Budget includes a significant boost for drought recovery initiatives, as regional communities across the country continue to struggle.
“These communities have shown strength and resilience, as all Australians have stood with them,” Mr Frydenberg said.
“The Morrison Government is providing $6.3 billion in drought support and $3.3 billion for those affected by flood. (We are) Expanding the National Water Infrastructure Development Fund, establishing the Future Drought Fund, extending the Farm Household Allowance and supporting graziers through a new North Queensland Livestock Recovery Agency.
“Tonight, I can announce that we will establish a new $3.9 million-dollar Emergency Response Fund that will ensure additional resourcing is available to support future natural disaster recovery efforts.”
All you need to know about #Budget2019 in just over 60 seconds #BuildingOurEconomy pic.twitter.com/Sk9WcvNl4B
— Scott Morrison (@ScottMorrisonMP) April 2, 2019
SKILLS PACKAGE AND EDUCATION
Mr Frydenberg announced a $525 million skills package, which he said would create 80,000 new apprenticeships as well as double incentive payments to employers in industries experiencing skills shortages.
“The government will also work closely with industry to train Australians in areas of future high demand, including communications technology, advanced manufacturing and health services,” he said.
“We announce tonight 10 new training hubs connecting schools, local industries and young people in regional areas with high youth unemployment.”
Among education spending was an announcement of $453 million to extend preschool education.
HEALTH
Mr Frydenberg said the Budget included substantial funding for upgrades to regional hospitals, the first being in Townsville.
“We are establishing Australia’s first children’s cancer centre in Sydney, helping to build a new brain and spinal ward in South Australia,” he said.
“And in this Budget, we also list more medicines on the (Pharmaceutical Benefit Scheme) to treat kidney, bladder, liver and skin scanner.”
One drug to be added to the PBS will be Besponza, a treatment for acute leukaemia that currently costs $120,000 per course.
Once listed, Mr Frydenberg said “patients will now have access to the medicine at a cost of only $6.50 per script for concession card holders and $40 for general patients”.
Youth mental health will also receive a $461 million investment, including 30 new Headspace centres, indigenous youth mentoring and a focus on cutting waiting lists.
Aged care will also receive a significant investment of $725 million to deliver 10,000 new Home Care packages.
BORDER SECURITY
The Budget includes a significant boost for national security and counter-terrorism, with agencies like the Australian Federal Police and ASIO receiving $570 million.
“In this Budget, we’re also allocating an additional $680 million to support our service men and women deployed abroad,” Mr Frydenberg said.
“Our government also recognises the importance of supporting our veterans. They have served our nation, defending our values and our interests. And so, in this Budget, we are adding $278 million invested in our last two Budgets to improve the wellbeing of the veterans and their families.”
‘TODAY IS THE DAY’
Speaking to the Coalition party room on Tuesday morning, Prime Minister Scott Morrison declared the return to surplus as momentous.
“Today is the day we’ve been working towards since first being elected in 2013,” Mr Morrison said.
“Today we’re bringing the Budget back in black. This is a demonstration of what the Australian people expect us to do, to get the job done compared with Labor’s talk.”
Labor’s Shadow Treasurer Chris Bowen has accused the government of “copying” the Opposition’s tax policy.
“I can assure the member that the Liberal and Nationals parties will never be borrowing any economic policy from the Labor Party,” Mr Morrison said in response.
“The last time the Labor Party had a surplus was 1989, Mr Speaker. I had long curly hair back then, Mr Speaker. That’s how long that was ago,” he says.
‘PATHETIC’ ATTACK SLAMMED
It might have been Budget day yesterday but there have been plenty of other antics elsewhere in Canberra.
Greens Senator Larissa Waters copped criticism, abuse and praise for an unsavoury image she posted on social media attacking one of her colleagues.
The Queensland politician uploaded a photograph to Instagram showing her give the finger to Fraser Anning, which one commentator described as “pathetic”.
“That moment when Fraser Anning talks to media outside your parliamentary window and you can’t help yourself,” the Queensland politician captioned the picture.
Senator Anning has been under fire for weeks since he blamed the deadly Christchurch mosque massacre, which killed 50 people, on Muslim immigration.
On Twitter, Senator Waters received a lot of praise for the move, with some describing her as their hero. Although plenty were also critical of the move, which some argue shows a lack of respect for the institution of politics.
Broadcaster Tom Elliott from Melbourne station 3AW slammed Senator Waters, describing the picture as “pathetic and puerile”.
“It’s taking Australian politics down to the level of schoolyard insults,” Elliott said.
“Giving the finger? It’s pathetic. She’ll probably become a hero on Twitter for doing this but I think it’s absolutely ridiculous.”
And predictably, trolls unleashed in the comments section of her Instagram account, hurling abuse at Senator Waters.
ANNING SLAMMED IN SENATE
Senator Anning copped a hiding from his colleagues, with one describing him as lacking “basic humanity”.
He faces a censure motion tomorrow, which is expected to pass with bipartisan support.
But acting government Senate Leader Simon Birmingham delivered an early brutal take-down, describing his remarks as “appalling”.
“The way you have conducted yourself in the time since betrays the rights you have to freedom of speech,” Senator Birmingham said.
“The lack of compassion you have shown demonstrates, frankly, a basic lack of basic humanity.”
He also backed Prime Minister Scott Morrison’s belief that Senator Anning should face the full face of the law for physically lashing out at a teenage boy who cracked an egg on his head.
“You have failed the test of character I would expect of anybody who is elected to this place,” Senator Birmingham said.
“We also trust that the people of Queensland will deal with you as you deserve to be dealt with at the next election.”
INSTAGRAM PIC PANNED
Ahead of Tuesday’s Budget, the PM shared a moody black-and-white portrait of himself on social media that was widely panned.
Just a day after he joined the youth-favoured social media app Snapchat, the PM took to Instagram with a highly stylised image of himself to promote the promised Budget surplus.
But the majority of comments were far from positive, with users urging him to “delete this” and “fire your comms people”.
“I can’t wait until AC/DC sue you,” one said.
Today show newsreader Tom Steinfort compared the picture to an album cover.
What do we think of @ScottMorrisonMP’s new album cover? pic.twitter.com/fEziN3wLXx
— Tom Steinfort (@tomsteinfort) April 1, 2019
We now have to endure B&W photos the AUS PM Scott Morrison sitting on the toilet? Srsly?! #Budget2019 #auspol pic.twitter.com/qIvWTNfSRC
— Peter Murphy (@PeterWMurphy1) April 2, 2019
A few pointed out that the crop and contrast make the photograph appear it was taken in “a toilet cubicle”.
Another cheeky commenter pointed out that Mr Morrison and his Treasurer Josh Frydenberg have only been in their roles a short while.
“Excellent work by (Malcolm Turnbull) to get our country into this position,” the user wrote.
And the Liberal Party has made its own video that resembles a promo for a television series, featuring a slow motion Mr Morrison and big, bold graphics.
Back in the black - tonight the Morrison Government is delivering the first Budget surplus in more than a decade.
— Liberal Party (@LiberalAus) April 2, 2019
Sign up for more information: https://t.co/xENqUQYGtO pic.twitter.com/Xr10eIETmA
A CAMPAIGN LAUNCH
Last night was always about much more than the Budget for the next year.
It marks the unofficial start of the election campaign, with Mr Morrison unveiling the sales pitch he will deliver to Australia over the coming month.
And it will clearly focus on paying down debt and delivering tax cuts to millions.
The Liberal Party released social media images less than two hours after the Budget address driving home the surplus messaging.
The last Labor surplus was in 1989!
— Liberal Party (@LiberalAus) April 2, 2019
Today the Morrison Government is delivering the first Budget surplus in more than a decade. pic.twitter.com/63NDehAuXE
Mr Morrison is expected to call the election within the next week, with the favourite picks for a possible date currently being May 11 or May 18.
We’ll find out soon enough.
RATES ON HOLD
In other fiscal news yesterday, the Reserve Bank of Australia kept the country’s official cash rate unchanged at 1.5 per cent.
The interest rate has sat on hold for a record-breaking 32 months now. It hasn’t increased since November 2010.
Originally published as Federal budget 2019: The winners and losers
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