Susie O’Brien: Chalmers’ budget rewards rich more than poor

Despite gross debt rising to $904bn this year, the government is splashing cash around and there’s not much in it for Jimmy Barnes’ working class man or woman.

The more you earn, the better off you will be in this budget.

The minute he walked in the joint, I could see Jim Chalmers was a real big spender.

Despite gross debt rising to $904bn this year, Chalmers is splashing the cash around.

But his third budget is out of tune, rewarding the rich more than the poor.

There’s not much here for Jimmy Barnes’ working class man, that’s for sure.

Chalmers can spin it anyway he likes, but this is not “responsible cost-of-living relief for middle Australia”.

The more you earn, the better off you’ll be after this budget, especially for the 13.6 million Australians getting tax cuts.

It makes no sense that a barista is getting a smaller tax cut than a barrister. Or a teacher less than a tycoon.

I know those on higher incomes pay more tax, but throwing around tax cuts of up to $4500 a year for the wealthiest wage earners makes no sense amid debt that will reach 35 per cent of GDP in two years’ time.

It makes no sense that a barista will get a smaller tax cut than a barrister. Picture: Getty Images

With an attitude like this, you’d think Chalmers was a Victorian.

He’s blamed rising deficits on “unavoidable spending” but there is nothing mandatory about the largesse on offer here.

The budget’s showstopper headline act is the tax cut package which will give eight million taxpayers earning $45,001 to $135,000 a cut of $804 to $3729 and those earning $135,001 to $190,000 tax cuts from $3729 to $4529.

He says it’s about “rewarding the hard work of our nurses and teachers, truckies and tradies” but he’s actually giving five times the tax deduction to silvertail professionals.

I appreciate that this third tranche of tax cuts comes off the back of more generous cuts in past years for lower income earners. They’re also designed to address bracket creep and are more generous than those planned by the coalition.

But it still seems skewed to me.

Nurses will get $1571, teachers $1802, childcare workers $811 and aged and disability care workers $909.

Why are some of the hardest-workers in our society treated so shabbily by this government?

On average, taxpayers will receive a tax cut of $1888 or $36 per week, and those earning an average income will pay $21,915 less tax over the next 10 years.

Why are some of the hardest-workers in our society, including nurses, treated so shabbily by this government? Picture: Supplied

Imagine how much less tax the rich will be paying in another decade.

If we need to have a $9bn surplus, it should at least be spent on the most deserving.

Chalmers is insisting the $3bn they’re spending on this shameless vote grab will not add to inflation.

I reckon he’s dreamin’.

Same goes for the $3.5bn power bill relief package that will give every single household a rebate of $300 on their energy bills.

Why isn’t it means tested to give those on the lowest incomes the most?

This obscene spending also includes a $7bn production tax incentive for some of the world’s biggest mining companies, $50bn over 10 years on defence and $13.7bn for green hydrogen.

Other empty promises abound.

The treasurer says he’s promising “cost of living help” which includes “better outcomes at the checkout”.

But all they’ve done is commission two inquiries without putting in place one practical measure to break up the supermarket duopoly costing millions of consumers so dearly each week.

The Australian people want real cost of living relief, like on supermarket pricing. Picture: NCA NewsWire / Max Mason-Hubers

The Australian people don’t want empty action on supermarket prices, we want outcomes that make a difference.

Same goes for the National Disability Insurance Scheme, which will hit a budget of $60bn by 2027-28, with increases of $14bn over four years. And what are they spending to get things back on track? Just $468m over two years.

Other undefined promises include wage increases for early childhood educators with details to be finalised following Fair Work Commission case underway. There’s also action on gender-based violence in higher education, but what about violence in schools? Close reading of the budget papers shows a cut in the budget for schools to deliver respectful relationships and consent education. What a total disgrace amid the current epidemic of violence against women.

Much more worthy is the $1.9bn pledge to boost Commonwealth Rent Assistance by a further 10 per cent – an increase for a family with kids of more than $70 a fortnight in the past two years. But let’s not forget that the money is spread over five years.

I also welcome more fee-free TAFE places – but there are no guarantees there will be educators to teach them.

Chalmers has been revealed, once again, as the ultimate showman – all sparkle, no substance. Certainly not a man of distinction, as the song goes.