Budget 2018 fallout: Australians react to Treasurer’s announcement

TREASURER Scott Morrison has announced spending plans in his 2018 Budget address, but not everyone is happy.

THE 2018 Federal Budget has been announced and a strong backlash has erupted in its wake.

Treasurer Scott Morrison tonight delivered his third budget from the despatch box in the House of Reps shortly before the Australian Treasury’s website crashed.

In his address, he said there were “five things we must do to further strengthen our economy to guarantee the essentials Australians rely on”.

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“One, provide tax relief to encourage and reward working Australians and reduce cost pressures on households,” Mr Morrison said.

“Two, keep backing business to invest and create more jobs. Especially small and medium-size businesses.

“Guarantee, three, the essential services that Australians rely on like Medicare, hospitals, schools, and caring for older Australians.

“Four, keep Australians safe with new investments to secure our borders and, as always, ensure that the Government lives within its means, keeping spending and taxes under control.”

Some of the key announcements included a seven year personal tax plan intended to “provide tax relief to hardworking Australians”.

“94 per cent of Australian taxpayers will pay no more than 32.5 cents in the dollar as a marginal rate,” Mr Morrison said.

“Those earning up to $37,000 and paying 19 cents in the dollar will have their tax reduced by up to $200 in what they have paid in tax.

“The average tax paid by Australians in that tax bracket in 2015-16 was $1,900 per year. For those earning more than $37,000, paying 32.5 cents in the dollar, their tax will be reduced by up to a maximum of $530 per year.

“4.4 million taxpayers with an income between 48,000 and 90,000 will receive the maximum tax relief of $530.”

Personal tax cuts for those earning less than $87,000 a year were a cornerstone of a budget sold as helping Australians deal with the rising cost of living.

It amounts to barely $10 a week, but that was all the centre-right government, which is lagging the opposition Labor in opinion polls, said it could responsibly afford.

But critics lit up Twitter with many claiming the 2018 Budget was “all about tax”. And many of those in the higher tax brackets said they would rather cuts go towards raising the minimum wage or elsewhere.

Following the announcement, Labor also hit back, saying the Budget failed the “Fairness test”.

Opposition leader Bill Shorten tweeted: “Every Budget is about choices. Yet again, Turnbull has chosen the top end of town — and he’s making you pay for it”.

Shadow Treasurer Chris Bowen said the Budget failed pensioners, hospitals and schools and he said it was based on a dodgy financial premise.

“Clearly the government has committed billions of dollars on the back of a temporary global economic upswing — we have seen how that plays out before,” he said in a statement on Tuesday night.

“Any budget that gives a handout to big business but hurts pensioners is a bad budget.”

Treasurer Scott Morrison arrives ahead of Budget 2018 at Parliament House in Canberra, Tuesday, May 8, 2018. Picture: AAP /Mick Tsikas.

Mr Bowen said Labor would back the personal income tax cuts but nonetheless had a swipe at the measures.

“Most of this package is off in the never never — it’s a hoax for Mr Turnbull to tell people they have to vote for him at least two more times before they tax relief in 2024.”

The Australian Greens plan to fight the federal government’s budget tax cuts all the way to the next election.

Leader Richard Di Natale made the threat following Mr Morrison’s address to Parliament.

“This is a tax plan that will turbo charge inequality in Australia,” he told reporters in Canberra.

He also commented on the issue on social media.

“A hedge fund manager on $200,000 a year gets 10 times the tax cut as the person who trims the hedges around his mansion,” Mr DiNatale wrote.

It gives big business and the banks an $80 billion tax handout, and makes Australians pay for it with savage cuts #Budget2018

— Bill Shorten (@billshortenmp) May 8, 2018

A big criticism so far has been the lack of funding for renewable energy initiatives. The government has pledged $41.5 million over seven years to ensure secure, reliable and affordable energy but little was mentioned about solar and wind in his address.

“The only time the Treasurer mentioned renewable energy in his speech was when he pledged to stand in its way,” Mr DiNatale said.

“There can be no greater act of intergenerational theft than doing nothing on climate change.”

Mr Morrison told Parliament the government will “maintain our responsible and achievable emissions reductions target at 26-28 per cent, and not the 45 per cent demanded by the Opposition”. “That would only push electricity prices up. And we will not adopt the 50 per cent Renewable Energy Target demanded by the Opposition, because that will only put electricity prices up,” he said.

“All energy sources and technology should support themselves without taxpayer subsidies.”

Green Peace issued a statement following the address in which it said the budget “pretends climate change isn’t happening by continuing to pour billions into fossil fuel subsidies, failing to allocate a single cent to renewable energy and taking a razor to the environment department”.

You had one JOB and you FAILED COMPLETELY. You didn't take into account what the top people that know more then what you do that those on welfare need to have their welfare bumped up not slashed or anything. I hope you can live on $40 a day Welfare Challenge cause you'll fail 🖕

— Lightning_Gaming (@Lightning_Hoof) May 8, 2018

The only time the Treasurer mentioned renewable energy in his speech was when he pledged to stand in its way. There can be no greater act of intergenerational theft than doing nothing on climate change. #Budget2018 #auspol #Greens

— Richard Di Natale (@RichardDiNatale) May 8, 2018

Did I hear that right about the cost of continuing the school chaplaincy program...? #budget

— Tracey Spicer AM (@TraceySpicer) May 8, 2018

There have also been questions raised as to whether the government should have been more generous to struggling low-income earners, pensioners and welfare recipients.

After having ditched a Medicare levy hike to pay for the National Disability Insurance Scheme, the government has resorted to a “trust us” approach to its funding.

Eyebrows were raised about the National Chaplaincy Program. This will win permanent funding, including an extra $247 million over four years, Mr Morrison said.

“We are extending the national schools chaplaincy program on a permanent basis with a special new anti-bullying focus”, the 2018/19 budget papers state.

In a sop to the Collation’s’ right wing, which rejoiced when the LGBTI specific anti-bullying Safe Schools program was axed by the Turnbull Government, School Chaplains will now get extra funds to focus on anti-bullying. So religious leaders, many of whom fought against Safe Schools and same-sex marriage will now be delivering anti-bullying programs aimed at preventing homophobia.

The money also hasn’t received a warm welcome from some in the education sector. The Australian Education Union national president Correna Haythorpe said the budget didn’t prioritise children and that chaplain funds could be better spent elsewhere.

“These funds are desperately needed in our schools to provide professional school counselling services, ongoing professional development for principals and teachers and student wellbeing programs,” she said.

Appalling that the government is still spending a quarter of billion on Chaplains in schools when we still aren’t funding the full original Gonski, or even a proper Safe Schools program. #Budget18 #Budget2018

— Adam Bandt (@AdamBandt) May 8, 2018

According to the Budget papers there is still $3 billion in zombie money for the East West tollway ready to go if Vic Labor or Vic Liberals decide to restart the project. We will fight this tooth and nail just like we did before #Budget18 #Budget2018

— Adam Bandt (@AdamBandt) May 8, 2018

Under @ScottMorrisonMP's plan a hedge fund manager on $200,000 a year gets 10 times the tax cut as the person who trims the hedges around his mansion #budget2018 #auspol

— Richard Di Natale (@RichardDiNatale) May 8, 2018

Liberals tax plan gives politicians an extra $7,000 per year, meanwhile someone earning only $41k per years will get $200. How is is that fair? It’s not! #Budget18

— Sarah Hanson-Young💚 (@sarahinthesen8) May 8, 2018

Voter support for Prime Minister Malcolm Turnbull, who only has a wafer-thin parliamentary majority, has eroded in recent months amid perceived dysfunction in Canberra, with the Liberal leader having to bat away calls to step down.

The budget is seen as a way of reaffirming his credentials ahead of the election.

Pumping money into infrastructure projects to create jobs was a key thrust, with the government earmarking $5.1 billion to bankroll a rail link to Melbourne airport in a state governed by Labor.

It also put $1.0 billion towards easing congestion on the busy freeway linking Brisbane and the Gold Coast tourist region, in another Labor state, as part of a 10-year national transport plan.

Great news for people squashed on peak hour buses, trains and trams, #budget18 promises more roads for polluting car.

— Lady Walter Slurrie (@WilmaSlurrie) May 8, 2018

The government had already announced some big ticket items, including half a billion dollars to protect the Great Barrier Reef and plans to do away with a bizarre beer tax that hits craft breweries 40 percent more simply because they use smaller kegs.

“This not only champions the craft brewers that we’ve all grown to love, it raises a very tantalising prospect for Australians: the likelihood of cheaper craft beer,” said Morrison.

The government also handed $140 million to the local film industry and there was more money for old-age care to encourage people to stay in their own homes longer.

The cash splash was made possible by a boost to revenue from a pick-up in commodity prices, more company tax, and employment growth putting less strain on welfare benefits.

The government will recoup some of its spending by clamping down on illegal tobacco sales, which have boomed since excises were increased on cigarettes, with the initiative expected to pull in $3.6 billion over four years.

- With AAP

[e-mail] | @Megan_Palin

Originally published as Budget 2018 fallout: Australians react to Treasurer’s announcement