Opinion: Lots of gain, no pain in pre-election Budget

THIS year’s non-offensive Federal Budget picks no major fights and is an election-setting blueprint that focuses on reward and saves households more of their pay increase when they get one. But there a few glaring omissions, writes Renee Viellaris.

THE Courier-Mail’s federal political editor Renee Viellaris gives her verdict on Scott Morrison’s third Budget.

OVERALL BUDGET - GOOD

THE non-offensive Budget picks no major fights and is an election-setting blueprint that focuses on reward and saves households more of their pay increase when they get one.

There’s no big stick and no big shock taxes like last year’s bank levy.

With big infrastructure projects to boost jobs, personal income tax cuts and a surplus for the first time in a decade, the Turnbull Government heads into an election with a good economic message.

The Budget looks after the conservative base without alienating middle Australia.

PAYING DOWN DEBT - BAD

TREASURER Scott Morrison could have paid down debt quicker, but chose to give Australians a tax cut instead.

The political decision is understandable, but after years of being told of budget and deficit emergencies, the Government has left itself open to attack from Labor.

Expect Labor to exploit the change in rhetoric now until election day.

It comes as the treasurer cited how significant the GFC was.

Coming off a once-in-a-100-years mining investment boom had a bigger impact, ripping $80 billion from the economy.

ECONOMY - GOOD

NOT a beautiful set of numbers but Australia is looking good after trying to break free from the Global Financial Crisis.

Jobs continue to be created at an impressive rate of 1000 a day and business confidence appears to be the best it has been in years.

Growth payments are the lowest level of any government in the past 50 years and the Federal Government no longer has to borrow to pay for every day expenses.

Gross debt will peak in 2019/20 at less than 30 per cent of GDP. Over the medium term gross debt will be slashed.

WELFARE - BAD

EVERY now and again Government come up with an idea that sounds good – and will probably be popular with some voters – but is just plain dumb.

Under the plan, the Government will make compulsory dedications from welfare payments from people with serious fine defaults or warrants.

It is unlikely to pass the Senate and will heavily rely on the states to make it work.

It is unlikely Labor states will want to sign-on unless there are some serious caveats but even then, it goes against Labor’s DNA.

QUEENSLAND - GOOD

THE Turnbull Government is spending $5 billion on new infrastructure in Queensland but it will be delivered over a long period of time and requires the State Government to also chip in money.

The Queenslanders in Malcolm Turnbull’s Cabinet have punched above their weight but have not done as well as Victorians (who are still dirty over losing the $5 billion Land 400 Defence deal to Queensland).

There is a big investment in the Great Barrier Reef and new money to help Queenslanders living in rural and regional areas.

ENERGY - BAD

FOR such a big cost-of-living political battleground, there’s not much meat on the bone in the Budget.

Yes, Energy Minister Josh Frydenberg is doing the hard yards, but in terms of what it means for households in this year’s Budget it gives away little.

It will spend almost $38 million over five years to back in its measures.

Mr Morrison says the National Energy Security Board estimates annual power bills will fall by $400 a year for every Australian household from 2020 — that’s an election cycle a way and we may feel duped in the short term.

HEALTH - GOOD

HEALTH Minister Greg Hunt again shows he is one of the stars of the Government.

Usually considered a Labor strong point, the Government is cementing itself as a significant reformer on health policy.

It will provide $1.4 billion over five years for new and amended listings on the Pharmaceutical Benefits Scheme.

It includes the listing of Kisqali, a lifesaving breast cancer drug.

The investment in aged care is also good policy.

As the Howard Battlers age, the Coalition needs to convince them to again wholly park their vote with the Government.

TAX - GOOD

THE Government should be congratulated for taking on big tax reform although it will not culminate for seven years.

Scott Morrison could have sacrificed a surplus to give more Australians a bigger tax cut sooner but instead unveiled a “responsible” plan that the Budget can “afford”.

The planned tax cuts start in July for low-to-middle income earners by giving them an offset of about $530 at tax cut.

But the big change is getting rid of a whole tax bracket in 2024 — and this will foster the drive to earn more and work more overtime.

Originally published as Opinion: Lots of gain, no pain in pre-election Budget