Federal Budget 2015: Treasurer Joe Hockey to deliver second Abbott government budget

AS IT HAPPENS: TREASURER Joe Hockey is announcing his make or break Budget in Canberra.

TONIGHT’S budget is a make or break moment for Treasurer Joe Hockey.

But Tony Abbott has told his colleagues this year’s budget includes proposals the government can go out and fight for.

And just hours before the treasurer hands down his second budget, the prime minister personally praised Hockey for doing an “absolutely outstanding job” in its lead-up.

“This budget is not about our political fortunes, but what is best for the people of Australia,” Mr Abbott told a joint party room meeting in Canberra.

The North Sydney MP will hand down his second budget at 7.30 tonight in Canberra.

As with most budgets, much of the detail has already been leaked.

So far there are wins for parents paying for childcare, the deficit is down and businesses will get a tax break.

But many prospective parents face a reduction in paid parental leave, with the government seeking to stop parents from claiming the government scheme and their own employer benefits.

Big night ... The Treasurer of Australia Joe Hockey will deliver the budget tonight. Picture: Gary Ramage

The backlash has already begun, with many parenting groups and families angry that Tony Abbott came into office on a promise of a more generous parental leave program and now seeks to cut it.

There will be no new cuts to foreign aid in this year’s federal budget, Julie Bishop has told her colleagues.

In an address to a joint party room meeting in Canberra on Tuesday, the foreign minister said funds to Pacific nations were being preserved.

But there will be a reduction in money given to Southeast Asian countries except Cambodia

But tonight it is down to the wire for Mr Hockey, whose last budget — his first — was widely unpopular and caused major backdowns for the government after many of the measures were blocked by the Senate.

Former Palmer United Party Senator now independent Jacqui Lambie has already said she would vote against the generous families package in tonight’s budget that puts more money into the pockets of families earning more than $165,000.

No cigar this time ... this image of Finance Minister Matthias Cormann and Treasurer Joe Hockey puffing on cigars before last year’s budget announcement did not play well for the government. Picture: CHANNEL 9

Among the measures announced by Social Services Minister Scott Morrison on Sunday, the cap on the childcare rebate would be slashed, or boosted by $1500 for high-income families.

Stay-at-home mums would no longer receive government benefits for childcare if their partner earns more than $65,000 unless they can demonstrate at least four hours of work or study per week.

Other crossbench Senators Glenn Lazarus, Bob Day, David Leyonhjelm and John Madigan have also expressed concerns about the families package, meaning it could be on track to be overthrown in the Senate.

Among the other measures in tonight’s budget include a $450 million package to help combat the Islamic State terror group and its propaganda.

Mr Hockey confirmed this morning that the deficit in tonight’s budget would come in below $40 billion, defying market forecasts.

Jobs growth and a recovery in iron ore prices have boosted the recovery, and Mr Hockey said the deficits would continue to fall in coming years.

He’s still got a fan ... Anika Buining from the Hunter Valley took the opportunity for a selfie with Joe Hockey this morning as he talked with the media. Picture: Gary Ramage

“We are very focused on doing what is right for the Australian people to give people a chance to get ahead,” Mr Hockey said on his way into parliament this morning.

“It’s responsible, measured and fair and it is going to be a big help for small businesses and families,” he said of his budget.

But if tonight’s budget is a flop, Mr Hockey and Prime Minister Tony Abbott could again face being removed from their jobs.

In February, Mr Abbott was successful in stemming a leadership change.

However many of the chief agitators have said the budget will be a defining moment as to if a challenge will be launched before the end of the year.

“It’s just a matter of time,” one source told News Corp Australia yesterday.

“Let’s just wait and see what the budget says and we’ll go from there,” another said.

But at least in some people’s minds, Mr Hockey is still a star, with the Treasurer asked to pose for a selfie on the forecourt of parliament this morning.

“I don’t want to feel like Kevin Rudd,” the Treasurer chuckled.

Originally published as Federal Budget 2015: Treasurer Joe Hockey to deliver second Abbott government budget