Federal Budget 2015: What Joe Hockey said and what he meant

WE’VE cut through the spin. Deciphered the polliespeak. And hidden behind the words of Joe Hockey’s speech were some interesting meanings.

TREASURER Joe Hockey’s Budget speech last night was full of bluster, as he encouraged average Aussies to invest and “have a go”.

He spoke of his “optimism” for Australia’s financial future, and gave himself a big pat on the back for putting getting the economy back on track.

It was a massive turnaround from last year’s talk of a “Budget emergency” and a debt and deficit apocalypse.

So — let’s get this straight — 12 months’ economic management from the Liberals and this grave crisis is over?

Thankfully, news.com.au is well-versed in polliespeak and we’ve cut the spin to explain what Mr Hockey really meant during last night’s Budget speech.

“Remember all that talk of a Budget emergency. Forget that!” Picture: Kym Smith

WHAT JOE SAID: “We cannot tax our way to prosperity. And we must continue to look for sensible savings.”

WHAT IT REALLY MEANS: Sounds like someone has had a slice or two of humble pie. Mr Hockey has learnt his lesson from last year’s stinker Budget and turned his back on harsh savings measures that hit patients, students and pensioners hard. Instead, he’s promised $10 billion worth of sweeteners to families and small businesses to help get middle Australia back on side and bolster the government’s flagging electoral fortunes. Mr Hockey’s saying “Come back to us, Howard battlers. We miss you!”

WHAT JOE SAID: “Overseas-based businesses selling services into Australia may not charge GST when local businesses have to charge GST … We don’t want to increase taxes on Australians, but we do want everyone to pay their fair share along the way.”

WHAT IT REALLY MEANS:Sorry, binge-watchers. If you love Netflix, expect to pay 10 per cent more for the privilege.

WHAT JOE SAID: “I say to you, the economic plan laid down by this Government more than a year ago, is in place and it is helping us to deal with these challenges.”

WHAT IT REALLY MEANS: Well, this is a bit rich. It should be noted most of the marquee Budget reforms from last year have not come to pass. The government either dumped or failed to get over the line: the $7 GP co-payment, the “gold-plated” paid parental leave scheme, aged pension indexation, HECS indexation and university deregulation. This amounts to an $8 billion retreat from last year’s unpopular measures. So when he talks about the path laid down more than a year ago, he’s really saying, “We’re here now. Don’t look back. Please!”

WHAT JOE SAID: “I believe our nation’s best days are ahead of us. So now is the time for all Australians to get out there and have a go.”

WHAT IT REALLY MEANS: The mining boom is over. The Budget papers showed mining will shrink from 45 per cent of government revenue to 16 per cent over the next three years. While Mr Hockey talks up our rosy financial future, he’s really hoping that small business will do the heavy lifting to make up this lost revenue. With $5.5 billion in tax breaks, he’s encouraging mum and dad businesses to help spend our way out of this financial tight spot. Over to you, small business owners!

WHAT JOE SAID: “The debt and deficit mess that we inherited was not of our making, but we have taken positive action that is delivering results. Australia’s budget position is getting stronger each and every year … From a $48 billion deficit we inherited, to $35 billion next year, down to a $7 billion deficit in another three years’ time.”

WHAT IT REALLY MEANS:Remember all that talk about the “Budget emergency” and the predictions of a debt and deficit apocalypse? Well, it seems as though we don’t have to worry about that anymore. One year of economic management from the trusty Libs, and she’s hunky dory. The government predicts we’ll be back in surplus by 2020, but it should be noted this is based on some very optimistic growth forecasts.

“That last Budget was a close one. Hands off my Budget this year, Scott Morrison!” Picture: Stefan Postles/Getty Images

WHAT JOE SAID: “Anyone on a working holiday in Australia will have to pay tax from their first dollar earned, rather than enjoying a tax free threshold of nearly $20,000. This will save the Budget $540 million.”

WHAT IT REALLY MEANS: Backpackers will now be taxed from the first dollar they earn in the country. And, why not? It’s not like they vote!

WHAT JOE SAID: “This government knows there are many Australians who want a job and can’t get one. As part of our economic plan, we are doing more to help.”

WHAT IT REALLY MEANS:Again, this is a pretty stark contrast to last year’s measures, which kinda painted all job seekers under 30 as dole bludgers. Mr Hockey is hoping that we forget about the harsh measure from last year’s Budget that would have kicked all job seekers under 30 off unemployment benefits for six months. This year’s Budget instead promised a much more reasonable four-week wait for the dole for people under 25.

WHAT JOE SAID: “We have helped to bring down the cost of living — Australians today are paying less for their electricity and less on their mortgages.”

WHAT IT REALLY MEANS: Here, Mr Hockey is taking credit for our record-low interest rates. It should be noted that most economists say that a cash rate at 2 per cent is a sign of a weak economy, not a strong one.

WHAT JOE SAID: This is one of the most gobsmacking lines from the Budget papers: “The government is maintaining a disciplined approach to its decision making. The decision not to proceed with the Paid Parental Leave Scheme, which was fully funded in the budget, has provided room for other priorities. The net impact of not proceeding with the scheme, together with all decisions in the Budget, results in a $1.6 billion improvement to the budget bottom line over the forward estimates.”

WHAT IT REALLY MEANS: This stretches credibility to breaking point. In this outstanding piece of spin, the government has turned an embarrassing backdown on its signature election policy, the overly generous Paid Parental Leave Scheme, into a plus by counting it as a Budget saving. Result!

WHAT JOE SAID: “This Budget is responsible, measured and fair. We are creating opportunities for job seekers, young and old … This is a Budget that helps build a stronger, safer and more prosperous Australia.”

WHAT IT REALLY MEANS: This Budget was less about fixing the bottom line and more about saving the Coalition’s bacon. While Mr Hockey’s big finish in his Budget speech made it sound like the Budget was all about you, what he was really saying was “We really wanna keep our jobs — me especially!”

Originally published as Federal Budget 2015: What Joe Hockey said and what he meant