Federal Budget 2019: Coalition eyes squarely on looming poll

JOSH Frydenberg has taken direct aim at Labor in a Budget speech pitched squarely at winning the votes of middle Australia.

JOSH Frydenberg has taken direct aim at Labor in a Budget speech pitched squarely at winning the votes of middle Australia.

With just days before a federal election is expected to be called, the Federal Treasurer spent a significant portion of his speech burnishing the Coalition’s brand.

He promised good times ahead: tax cuts, wage increases, budget surpluses and falling debt.

Taxes featured heavily, mentioned 44 times by the Treasurer.

“Every one of us wants to see wages growing faster … but let me be clear: the answer to these challenges is not higher taxes,” he said.

Federal Treasurer Josh Frydenberg delivers the Budget. Picture: AAP/Lukas Coch

Tuesday night’s federal Budget speech was as much a pre-election economic manifesto as it was a an annual fiscal blueprint.

“Under the Coalition, the economy will always be stronger, allowing you and your family to get ahead,” Mr Frydenberg said.

“Under the Coalition, our borders will always be more secure.

“Under the Coalition, there will always be more jobs and lower taxes.

“And under the Coalition, essential services will always be guaranteed.”

While many of the Budget’s key announcements had already been made, it is also clear there will be significant further promises to come in the federal election campaign.

Mr Frydenberg focused on the Coalition’s strengths in lowering taxes, bolstering small business and delivering big infrastructure spending in a Budget for mums and dads, for commuters, and for small business.

“Taxes will always be lower under the Coalition,” he said, again, for good measure.

And later: “Our values embrace all Australians. Not just some of them” – a nod to the differences between the parties on negative gearing and franking credits.

Mr Frydenberg promised to make “the first repayment made on Labor’s debt”, which presumably will evaporate before the Coalition’s contribution is tackled.

And he hearkened back in history: “John Howard and Peter Costello paid off Labor’s debt.

“And tonight the Morrison Government sets a path to do it again, without increasing taxes.”

Tasmanian Liberal Senator Richard Colbeck said the Government’s strong budget management allowed it to invest in essential services for the state.

“Payments to Tasmania for public hospitals have increased by almost 45 per cent, from $294 million in 2012-13 to $425 million in 2019-20. Health funding for Tasmania increases by $33 million from 2019-20 to 2022-23,” he said.

“For schools, record funding for Tasmania will increase from $454 million in 2019 to $629 million in 2029.”

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However, Labor Franklin MHR Julie Collins said Tasmanians would be rightly cynical of the election-eve Budget, while the state’s health system remained in crisis.

“The Liberals’ cuts have led to a crisis in our state’s health and hospital system. The Budget does nothing to fix this health crisis and locks in the Liberals’ cuts,” Ms Collins said.

“Tasmanians won’t forget Scott Morrison cut $11 million from Tasmania’s hospitals and cut $52 million from Tasmanian schools.”

Independent Clark MHR Andrew Wilkie said while the Budget was better than many in recent years, it was a missed opportunity for deep reform.

“The Budget is a mixed bag for Tasmania. There are some important infrastructure commitments, such as the funding to start dealing with Hobart’s traffic congestion, and it’s good to see projects like the new Bridgewater Bridge apparently on track. But there’s no investment in passenger rail, nothing to further address the cost of Bass Strait, and no big projects beyond the current City Deal like the University of Tasmania’s STEM proposal,” Mr Wilkie said.

Tasmanian Greens Senator Nick McKim said the Budget was “missing in action on climate change”.

“They announced $2 billion for a climate solutions fund but only $189 million in the forward estimates. We’re in a climate emergency and we need to do far, far better than this,” he said.

“There’s no new money to manage the World Heritage Area, no new money for firefighting. I’m horrified by [no new funds for TWWHA]. The TWWHA is a global treasure and it’s hurting at the moment and it needs looking after.”

Tourism Industry Council of Tasmania CEO Luke Martin welcomed $50 million to develop the next generation of tourism icons.

“We in Tasmania know as well anyone how powerful strategic investments in iconic tourism infrastructure such as the Three Capes Track and Blue Derby Mountain Bike Tracks can be in completely transforming regional economies,” Mr Martin said.

The Tasmanian Treasurer, Peter Gutwein, has an update on what the 2019 Federal Budget means for Tasmania.

Posted by Will Hodgman on Tuesday, 2 April 2019

Tasmanian Council of Social Service CEO Kym Goodes said the Budget brought no joy to people on low wages or income support.

“A surplus of $46 billion while 120,000 Tasmanians live in poverty is not good enough,” Ms Goode said.

“For those on income support in Tasmania … there is only a $75 per year one-off payment and if you are on Newstart you get no help with cost of living pressures.”

Ms Goodes said the Budget ignored the two biggest social issues in Tasmania — housing affordability and the underfunding for the NDIS.

“Good governments use effective policy to prevent and offset rising inequality, stagnant incomes and rising costs of living rather than simple tax cuts to create a short-term sense of improvement,” she said.