The more than $100bn improvement in the bottom line over the five years to 2025-26 is testament to this.
An extra $39.2bn spent since December’s mid-year economic and fiscal update is dwarfed by the $142.9bn budget windfall from Treasury’s massively upgraded economic outlook.
Previous improvements in the bottom line through the pandemic – of a similar size – have been spent almost in full.
This is stage two of the government’s fiscal strategy in action.
The budget doesn’t even bake in record commodity prices, so there’s more upside to come in the mid-year budget later this year, whoever is in government.
Deloitte’s Chris Richardson says for every week that coal and iron ore prices stay sky-high, the government receives an extra $1bn in revenue.
Every. Week.
All of which is to say, as a political document, this is a good budget.
As an economic document, well, the judgement has to be more harsh.
Let’s focus on the flagship policy announcements aimed at cost of living worries, and not least the $2.20 a litre petrol price.
Did we need a fuel excise cut?
No. Spending that much on fuel is painful but you’re giving it to everybody who drives, regardless of how rich they are.
Where the fuel excise cut of 22c might help is by building confidence.
Households have been spooked by climbing inflation and the threat of higher interest rates – and a reduction in the petrol price could ease some of these worries.
Did we need a supercharged low and middle-income tax offset? Certainly not.
Giving up to $3000 in tax rebates to a couple each earning more than $120,000 a year smacks of middle-class welfare.
Both are poorly targeted if you are really worried about cost of living pressures.
Too many recipients won’t need the extra cash, and will probably just pocket it.
Don’t forget that Australians have squirrelled away more than $250bn in additional savings through the pandemic.
Treasury admits that the boost to the economy from both measures will be negligible.
Of course it will – nominal GDP is already forecast to grow by an eye-watering 10.75 per cent in this financial year.
A few extra billion is a drop in the ocean.
The $250 payment to welfare recipients, pensioners, carers and veterans makes more sense.
At least the money is more likely to be going to people who really need it.
Why centre-based childcare fails our young kids
What if it turns out that long daycare is actually harmful to many children and that the consequences will play out for the rest of their lives?
Audit on children ditching state care
A full audit has been ordered by the Queensland government to discover why almost 800 vulnerable children in state care are leaving arranged housing placements to tough it out on their own, as unlicensed providers flood the system.
Josh Frydenberg’s shift in strategy – from hell-for-leather emergency spending to a little coddling of Australians freaking out about high petrol prices – has been revealed in a budget that shows an admirable restraint in the shadow of a looming election.